Goldman Sachs Announces A Huge Shake-Up in its Tading Business

(this article first appeared on Business Insider)

Goldman Sachs just announced a big shake-up.

Tom Cornacchia, the global cohead of fixed income, currency and commodity — FICC — sales at the bank, is leaving.

An internal memo, sent after an initial report from Business Insider, confirmed the departure.

“Tom’s drive, energy, and passion for our clients and our culture have influenced a generation of salespeople at Goldman Sachs,” the note said. “His deep understanding of the credit and mortgage markets had an equal effect on young and senior traders alike.”

The note was signed by Isabelle Ealet, Pablo Salame, and Ashok Varadhan, coheads of the securities business. A spokeswoman for Goldman Sachs confirmed the contents of the memo.

Pete Selman, global cohead of equity trading, is also leaving, according to people familiar with the matter.

Cornacchia spoke openly about a cultural change in the fixed-income business at Goldman Sachs earlier this year. He said the shift was causing some “awkwardness” and “friction.” His departure follows that of his former cohead, Dalinc Ariburnu, earlier this year.

Cornacchia’s departure has triggered a set of other moves:

  • Cornacchia will be replaced by John Willian. He was previously global head of prime services.
  • Willian will be replaced by Jeff Nedelman. He was previously head of Americas equity sales.
  • Jack Sebastian and Tony Pasquariello will become coheads of US equity sales.

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