The US-based investment banking conglomerate, Goldman Sachs, will reportedly see the departure of its head of Fixed Income, Currencies and Commodities (FICC), Joseph Mauro, who will be leaving the bank, according to sources quoted by a Business Insider article.
Goldman Sachs, like other major players in the fixed-income space, among other asset classes including foreign exchange, have made numerous cuts to staff and related changes as the low-interest rate environment globally is weighing down on volumes in fixed-income assets such as bonds and treasuries.
Early this year, Goldman Sachs had planned to cut 10% of its fixed-income workforce, as covered by Finance Magnates in a related post, following coverage from the Wall Street Journal. The company had dismal results in its last reported quarter, and may be taking further measures to increase its earnings amid challenging market conditions.
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Likely to join a new hedge fund
The Business Insider article mentioned that people familiar with the matter believe Mauro will be likely joining a new hedge fund launched by Ben Melkman and Brevan Howard. The news follows a number of senior departures from the firm’s FICC division, and other segments within Goldman Sachs‘ businesses.
Mr. Mauro gained attention after a memo he sent to junior staff at Goldman Sachs was widely circulated, in which he tried to reframe the perspective of the industry and the firm’s related layoffs, and included some unexpected infographics used to illustrate his points.
An excerpt of the internal memo started with a chart of the company’s stock price since its IPO in the late ’90s which occurred after Mr. Mauro joined in 1998, meant to provide context in his message to associates to start with the company’s initial history.