Goldman Sachs Plans Hiring Spree Amid Fed Scrutiny

Goldman Sachs is facing increased regulatory scrutiny, leading to the hiring of back-office staff to address compliance issues. Despite recent staff cuts due to declining profits, the firm is now focusing on remediation efforts. This shift impacts their business operations and management bandwidth, as compliance roles are prioritized over traditional banking roles.

What has been the primary reason for the increased scrutiny on Goldman Sachs by the Federal Reserve?

• Their real estate investments

• Their international operations

• Their consumer business and credit card practices

• Their investment banking practices

Why is Goldman Sachs hiring new staff despite having laid off thousands of workers?

• To increase their marketing efforts

• To develop new financial products

• To address compliance and regulatory issues

• To expand their trading operations

What has been the trend in Goldman Sachs' profits over the past two years?

• Profits have increased by 20%

• Profits have remained stable

• Profits have decreased significantly

• Profits have doubled

How might the hiring of compliance staff affect Goldman Sachs' business operations?

• It could limit the types of deals and trades they can pursue

• It will lead to an increase in international expansion

• It will have no impact on their operations

• It will allow for more aggressive trading strategies

What is one of the challenges faced by Goldman Sachs' management due to the increased focus on compliance?

• Difficulty in hiring new traders

• Limited management bandwidth for other initiatives

• Pressure to reduce marketing expenses

• Increased competition from other banks