Finance

Goldman Sachs Adopts Private Equity Playbook in Bold New Move

Large banks are increasingly adopting strategies reminiscent of private equity.

A recent example occurred last week when Goldman Sachs (GS), one of the most prominent and longstanding investment banks on Wall Street, made it clear—through both actions and statements—that private markets are central to its future growth and even its executive compensation model.

On Friday, Goldman announced an $80 million retention package for CEO David Solomon to keep him for another five years, along with an $8 million raise for his 2024 performance.

Part of that raise stemmed from a decision by Goldman’s board to introduce a compensation tool frequently used by private equity firms: carried interest. Solomon and other top executives can now earn a share of the carried interest generated by private funds within Goldman’s asset and wealth management division.

The move followed the board’s recognition of “the unique competitive threats for talent” that Goldman faces, including competition from alternative management firms and other players outside traditional banking, according to a filing.

TECH

Tech Giants Submit to Trump’s Influence in Shifting Political Landscape

President-elect Trump’s inauguration this week will bring together some of the nation’s most influential technology leaders, highlighting the results of a months-long effort by the industry to forge ties with the incoming president.

Through inaugural donations, visits to Mar-a-Lago, and shifts in policy, the tech titans have made progress in their relationship with Trump, who previously spent years criticizing Silicon Valley’s predominantly liberal companies.

This evolving dynamic will be on full display Monday, as high-profile figures like Tesla CEO Elon Musk, Meta CEO Mark Zuckerberg, Google CEO Sundar Pichai, and others are expected to be seated together nearby.

"You have this incoming president elevating these people, seating them on the dais and essentially trying to make them beholden to his policymaking," said Daniel Alpert, managing partner at Westwood Capital.

"The market may see it as Trump showing support for these companies, but really, it’s more like organized crime," Alpert added. "It’s an offer you can’t refuse. He’s co-opting them entirely and telling them, 'I own you, and you owe me.'"

Initially, the tech leaders were supposed to sit on the dais, a position of honor typically reserved for Trump’s family members, former presidents, and other prominent guests.

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CRYPTO

Trump Meme Coin Hits New Heights as Inauguration Draws Near

Donald Trump has launched a cryptocurrency "meme coin" named $Trump ahead of his second-term inauguration as U.S. president.

He revealed the launch on Truth Social and X on Friday night. Since then, the coin's value has surged, more than tripling from around $20 per token to over $70, with trading volume exceeding $24 billion by Sunday morning and a market capitalization surpassing $14 billion.

A "meme coin" refers to a type of cryptocurrency inspired by internet trends or memes, often lacking any inherent utility and prone to volatile price fluctuations. For example, the "Hawk Tuah girl" meme coin plummeted 95% shortly after its release last month, falling from a $500 million market cap to $25 million, leading investors to file complaints with the SEC about potential insider trading.

The cryptocurrency community has been closely watching Trump’s second term, anticipating a favorable regulatory environment, with Trump pledging to make the U.S. the "crypto capital of the planet."