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Goldman Sachs & Co., following a ten month internal review, has undertaken a realignment in its investment banking division to be completed this week, according to a memorandum to all partners and investment bankers from banking chiefs Robert Hurst, Willard (Mike) Overlock and Henry Paulson.
The "new initiatives," as the adjustments are called in the memo, include the creation of an investment banking policy committee, formalization of specific industry groups, the renaming of some departments and new assignments, including that of partner Chuck Davis to run the investment banking services (IBS) department, also known as new business origination. The changes were first outlined in a memo distributed in October, and have been underway since that time.
A senior official at the firm explained the changes were undertaken to enhance communications, as evidenced by the consolidation of bankers--formerly scattered on different floors--into one area.
The memo stressed that the result of these changes should be to enhance departmental cooperation, forming smaller core groups and more targeted and dedicated efforts.
The members of the new investment banking policy committee are Gene Fife, Rich Hayden, Howard Silverstein, Peter Barker, Peter Fahey, Joe Wender, Kevin Kennedy, Dan Neidich, Chuck Davis, Henry James, Artur Walther, Mark Schwartz and the three co-heads of banking, Hurst, Overlock and Paulson.
New industry groups
Three new industry groups have been created. An official at the firm downplayed the significance of the new groups and pointed out that Goldman Sachs bankers have always been aligned by industry, just that they were called "focus groups" before. The new groups, he said, are just a formalization of an existing organization.
Interestingly, the memo noted that the firm intends to place a strong emphasis on...