Goldman Sachs has become the latest bank to aim for a reshape of its trading desks. The second largest globally operating investment bank and the head honcho of its Fixed Income, Currencies and Commodities (FICC) unit, Thomas Cornacchia, have parted ways, an internal memo sent to employees of the company states.
The change is part of a broader shift in the business of Goldman Sachs towards a more agency-like model of sales. Back in March 2016, Cornacchia publicly stated that the regulatory framework changes are going to shift the business of the company into a different direction from its traditional service-providing business.
It’s always been a client business, but there’s a difference.
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Commenting on the state of Goldman’s FICC business, and spelling some fundamental changes, the former co-head of FICC Sales said at a conference organized by the investment bank in March: “It’s always been a client business, but there’s a difference.”
The changes are part of a gradual but at the same time abrupt shift in Goldman Sachs’ approach towards its FICC business.
Cornacchia will be replaced by John Willian, Goldman’s Global Head of Prime Services. Jeff Nedelman will pick up the vacated role in the company’s prime services business, after being head of Americas Equity Sales desk. Before being appointed to his executive sales role at the New York FICC unit, he headed the bank’s mortgage business.
The reshuffling at Goldman Sachs doesn’t end there, with Jack Sebastian and Tony Pasquariello taking over the US Equity Sales desk as co-heads.
Business Insider reported on the departure of Cornacchia before the Goldman Sachs internal memo was distributed.