Goldman Sachs (GS) stock is up 1.90% on Monday following the company’s announcement that an oil crash is not likely to sustain. A major selloff in the commodity triggered fear among investors that the commodity was likely to crash, despite increased measures by OPEC to cut production.
The bank rallied at the end of last week following two major announcements.
All banks passed the Dodd-Frank stress test, leading to increased investor sentiment in the sector, while Goldman Sachs announced the retirement of Stephen Pierce. Pierce is set to leave his post as the head of the company’s equity capital market after 31 years with the company.
Pierce will leave his post effective July 1, according to a company memo. The memo states, “There will be no replacement at this time for the global head.” Pierce, while leaving the company, will remain on several of the company’s committees and will stay active as an advisory director with Goldman Sachs.
Regional heads will work to fill the void left by Pierce, who joined the company in 1984. The company has not disclosed their contract details with Pierce or his potential severance package when leaving the company.
The memo said Piece became a partner in 2000 and filled the company’s role as managing director in 1997. The company’s stock suffered from a 2% drop since their last quarterly report for the period ended March 31.
Goldman Sachs’ stock also enters the week after the company announced that they will hire two bankers from Credit Suisse to help the company expand its business services.
Ali Azim will join the company as managing director, while Jeff Douthit will join in a partner role. Douthit is the head of Credit Suisse’s business-services coverage group and worked alongside Azim in the company. The duo is expected to help accelerate the company’s business services operations.
Credit Suisse has yet to comment on the talent grab, with many news agencies stating that Goldman poached the talent from the bank.
The duo will report to the company’s offices in Chicago working under Dusty Philip.
Goldman Sachs has been known to hire talent from Credit Suisse using the company’s elite partner title to their advantage.
The company is not known to hire new talent directly into the partner position. The rare move has been noted by investors that state the company has been open to offering top jobs and partnerships in an effort to strengthen weak divisions in the company.
Reports also suggest that the company is looking to bring on new talent to fill their vice presidential and managing director vacancies.