Goldman Sachs reviewing commodities business

Goldman Sachs Group is reviewing its commodities business after a slump in the first half of the year, according to people with knowledge of the matter. While the bank flagged the poor results for the first quarter — without giving specific numbers — the weakness has continued and the unit’s start to the year has been the worst in more than a decade, said one of the people, who asked for anonymity to discuss internal deliberations. The commodities division was one of the topics of discussion at a board meeting held in London last month, the people said. Goldman Sachs has stuck with commodities — where senior figures including Chief Executive Officer Lloyd Blankfein started their careers — even as competitors such as Morgan Stanley, JPMorgan Chase, Barclays and Deutsche Bank AG cut back or exited the business amid falling revenue and tougher regulation. The recent poor performance has led senior executives to question whether the downturn is cyclical, as the bank has argued until now, or structural, implying a need to reshape the business, the people said. No decision has been reached and the bank may not pursue large-scale changes, according to the people. It’s common for the bank to review struggling business units to see what can be improved, one of the people said. Future & Option Trading Tips