Companies: 10,652     total market cap: $140.563 T
โ‚ฌEUR๐Ÿ‡ช๐Ÿ‡บโ‚นINR๐Ÿ‡ฎ๐Ÿ‡ณยฃGBP๐Ÿ‡ฌ๐Ÿ‡ง$CAD๐Ÿ‡จ๐Ÿ‡ฆ$AUD๐Ÿ‡ฆ๐Ÿ‡บ$NZD๐Ÿ‡ณ๐Ÿ‡ฟ$HKD๐Ÿ‡ญ๐Ÿ‡ฐ$SGD๐Ÿ‡ธ๐Ÿ‡ฌ
Goldman Sachs
GS
#53
Rank
$274.00 B
Marketcap
๐Ÿ‡บ๐Ÿ‡ธ United States
Country
$905.14
Share price
0.07%
Change (1 day)
41.62%
Change (1 year)
๐Ÿฆ Banks๐Ÿ’ณ Financial services๐Ÿ‡บ๐Ÿ‡ธ Dow jones
Categories
  1. Goldman Sachs
  2. Quarterly Reports (10-Q)
  3. Financial Year FY2020 Q1

Goldman Sachs - 10-Q quarterly report FY2020 Q1


Text size:
false20202021-12-312021-12-312045-12-312045-12-31P1DP1D0.1550.1350.5990.5560.0440.0580.1600.1630.1560.0720.5580.5490000886982Q1--12-31GOLDMAN SACHS GROUP INCNY0.1250.0950.4060.4440.1120.0930.2950.1190.4860.1150.0960.0990.610.140.1340.0590.1180.6580.6850.120.1580.160.3350.3350.0420.0452067-12-31 0000886982 2020-01-01 2020-03-31 0000886982 2019-01-01 2019-03-31 0000886982 2020-03-31 0000886982 2019-12-31 0000886982 2019-01-01 2019-12-31 0000886982 2020-04-14 2020-04-14 0000886982 2020-04-17 0000886982 2018-12-31 0000886982 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember 2019-01-01 2019-03-31 0000886982 us-gaap:EMEAMember 2019-01-01 2019-03-31 0000886982 srt:AsiaMember 2019-01-01 2019-03-31 0000886982 srt:AmericasMember 2019-01-01 2019-03-31 0000886982 gs:UnsecuredLongTermBorrowingsAtFairValueMember 2019-01-01 2019-03-31 0000886982 gs:FairValueOptionOtherMember 2019-01-01 2019-03-31 0000886982 gs:UnsecuredShortTermBorrowingsIncludingCurrentPortionOfUnsecuredLongTermBorrowingsAtFairValueMember 2019-01-01 2019-03-31 0000886982 us-gaap:NetInvestmentHedgingMember us-gaap:ForeignExchangeContractMember 2019-01-01 2019-03-31 0000886982 gs:GlobalMarketsMember 2019-01-01 2019-03-31 0000886982 gs:AssetManagementMember 2019-01-01 2019-03-31 0000886982 gs:ConsumerAndWealthManagementMember 2019-01-01 2019-03-31 0000886982 gs:InvestmentBankingMember 2019-01-01 2019-03-31 0000886982 us-gaap:CreditMember 2019-01-01 2019-03-31 0000886982 us-gaap:ForeignExchangeMember 2019-01-01 2019-03-31 0000886982 us-gaap:EquityMember 2019-01-01 2019-03-31 0000886982 us-gaap:CommodityMember 2019-01-01 2019-03-31 0000886982 gs:InterestRatesMember 2019-01-01 2019-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansNonTradingMember 2019-01-01 2019-03-31 0000886982 gs:TradingCashInstrumentsAssetsFairValueDisclosureMember 2019-01-01 2019-03-31 0000886982 gs:MarketMakingMember gs:TradingCashInstrumentsAssetsFairValueDisclosureMember 2019-01-01 2019-03-31 0000886982 us-gaap:InterestIncomeMember gs:TradingCashInstrumentsAssetsFairValueDisclosureMember 2019-01-01 2019-03-31 0000886982 us-gaap:CreditRiskContractMember 2019-01-01 2019-03-31 0000886982 us-gaap:ForeignExchangeContractMember 2019-01-01 2019-03-31 0000886982 us-gaap:CommodityContractMember 2019-01-01 2019-03-31 0000886982 us-gaap:EquityContractMember 2019-01-01 2019-03-31 0000886982 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-03-31 0000886982 gs:DebtValuationAdjustmentMember 2019-01-01 2019-03-31 0000886982 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-01-01 2019-03-31 0000886982 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000886982 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-03-31 0000886982 gs:OtherPrincipalTransactionsMember 2019-01-01 2019-03-31 0000886982 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-03-31 0000886982 us-gaap:InterestRateContractMember 2019-01-01 2019-03-31 0000886982 us-gaap:SeriesAPreferredStockMember 2019-01-01 2019-03-31 0000886982 us-gaap:SeriesBPreferredStockMember 2019-01-01 2019-03-31 0000886982 us-gaap:SeriesCPreferredStockMember 2019-01-01 2019-03-31 0000886982 us-gaap:SeriesDPreferredStockMember 2019-01-01 2019-03-31 0000886982 us-gaap:SeriesEPreferredStockMember 2019-01-01 2019-03-31 0000886982 us-gaap:SeriesFPreferredStockMember 2019-01-01 2019-03-31 0000886982 gs:SeriesJPreferredStockMember 2019-01-01 2019-03-31 0000886982 gs:SeriesKPreferredStockMember 2019-01-01 2019-03-31 0000886982 gs:SeriesNPreferredStockMember 2019-01-01 2019-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember 2019-01-01 2019-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember 2019-01-01 2019-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:CorporateLoansAndDebtSecuritiesMember 2019-01-01 2019-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:OtherCashInstrumentsMember 2019-01-01 2019-03-31 0000886982 gs:LoansAndSecuritiesBackedByResidentialRealEstateMember gs:TradingCashInstrumentsAssetsMember 2019-01-01 2019-03-31 0000886982 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0000886982 us-gaap:PreferredStockMember 2019-01-01 2019-03-31 0000886982 gs:RestrictedStockUnitsAndEmployeeStockOptionsMember 2019-01-01 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:OtherSecuredFinancingsAtFairValueMember 2019-01-01 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember us-gaap:DepositsMember 2019-01-01 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:UnsecuredShortTermBorrowingsIncludingCurrentPortionOfUnsecuredLongTermBorrowingsAtFairValueMember 2019-01-01 2019-03-31 0000886982 gs:UnsecuredLongTermBorrowingsAtFairValueMember gs:OtherFinancialLiabilitiesMember 2019-01-01 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember us-gaap:OtherLiabilitiesMember 2019-01-01 2019-03-31 0000886982 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:MarketMakingMember 2019-01-01 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:OtherPrincipalTransactionsMember 2019-01-01 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:DebtValuationAdjustmentMember 2019-01-01 2019-03-31 0000886982 gs:RepurchaseAgreementsAtFairValueMember gs:OtherFinancialLiabilitiesMember 2019-01-01 2019-03-31 0000886982 gs:TradingCashInstrumentsLiabilitiesMember 2019-01-01 2019-03-31 0000886982 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000886982 us-gaap:AccountingStandardsUpdate201602Member us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000886982 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0000886982 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000886982 gs:WealthManagementAndOtherLoansMember 2019-01-01 2019-03-31 0000886982 gs:CommercialRealEstateLoansMember 2019-01-01 2019-03-31 0000886982 gs:ResidentialRealEstateLoansMember 2019-01-01 2019-03-31 0000886982 us-gaap:LoansReceivableMember 2019-01-01 2019-03-31 0000886982 gs:CorporateLoansMember 2019-01-01 2019-03-31 0000886982 us-gaap:InvestmentsMember 2019-01-01 2019-03-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember us-gaap:InvestmentsMember 2019-01-01 2019-03-31 0000886982 us-gaap:EquitySecuritiesMember us-gaap:InvestmentsMember 2019-01-01 2019-03-31 0000886982 gs:SecuritiesBackedByRealEstateMember us-gaap:InvestmentsMember 2019-01-01 2019-03-31 0000886982 us-gaap:OtherDebtSecuritiesMember us-gaap:InvestmentsMember 2019-01-01 2019-03-31 0000886982 us-gaap:FairValueOptionOtherEligibleItemsMember 2019-01-01 2019-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:FairValueInputsLevel3Member 2019-01-01 2019-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:OperatingIncomeLossMember 2019-01-01 2019-03-31 0000886982 us-gaap:InterestIncomeMember us-gaap:InvestmentsMember 2019-01-01 2019-03-31 0000886982 us-gaap:FairValueInputsLevel3Member 2019-01-01 2019-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:OtherPrincipalTransactionsMember 2019-01-01 2019-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:InterestIncomeMember 2019-01-01 2019-03-31 0000886982 us-gaap:CommercialPortfolioSegmentMember 2020-01-01 2020-03-31 0000886982 us-gaap:ConsumerPortfolioSegmentMember 2020-01-01 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember 2020-01-01 2020-03-31 0000886982 us-gaap:MortgageBackedSecuritiesMember 2020-01-01 2020-03-31 0000886982 gs:USGovernmentAndFederalAgencyObligationsHeldByFirmMember 2020-01-01 2020-03-31 0000886982 gs:NonUSGovernmentAndAgencyObligationsHeldByFirmMember 2020-01-01 2020-03-31 0000886982 gs:USGovernmentAndFederalAgencyObligationsThatCollateralizeSecuritiesPurchasedUnderAgreementsToResellAndSecuritiesBorrowedMember 2020-01-01 2020-03-31 0000886982 gs:NonUSGovernmentAndAgencyObligationsThatCollateralizeSecuritiesPurchasedUnderAgreementsToResellAndSecuritiesBorrowedMember 2020-01-01 2020-03-31 0000886982 gs:StandardizedCapitalRulesMember 2020-01-01 2020-03-31 0000886982 gs:AdvancedCapitalMember 2020-01-01 2020-03-31 0000886982 us-gaap:EMEAMember 2020-01-01 2020-03-31 0000886982 srt:AsiaMember 2020-01-01 2020-03-31 0000886982 srt:AmericasMember 2020-01-01 2020-03-31 0000886982 gs:UnsecuredLongTermBorrowingsAtFairValueMember 2020-01-01 2020-03-31 0000886982 gs:FairValueOptionOtherMember 2020-01-01 2020-03-31 0000886982 gs:UnsecuredShortTermBorrowingsIncludingCurrentPortionOfUnsecuredLongTermBorrowingsAtFairValueMember 2020-01-01 2020-03-31 0000886982 us-gaap:NetInvestmentHedgingMember us-gaap:ForeignExchangeContractMember 2020-01-01 2020-03-31 0000886982 us-gaap:SubordinatedDebtMember 2020-01-01 2020-03-31 0000886982 gs:GlobalMarketsMember 2020-01-01 2020-03-31 0000886982 gs:AssetManagementMember 2020-01-01 2020-03-31 0000886982 gs:ConsumerAndWealthManagementMember 2020-01-01 2020-03-31 0000886982 gs:InvestmentBankingMember 2020-01-01 2020-03-31 0000886982 us-gaap:CreditMember 2020-01-01 2020-03-31 0000886982 us-gaap:ForeignExchangeMember 2020-01-01 2020-03-31 0000886982 us-gaap:EquityMember 2020-01-01 2020-03-31 0000886982 us-gaap:CommodityMember 2020-01-01 2020-03-31 0000886982 gs:InterestRatesMember 2020-01-01 2020-03-31 0000886982 gs:OtherRetainedInterestsMember 2020-01-01 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansNonTradingMember 2020-01-01 2020-03-31 0000886982 gs:TradingCashInstrumentsAssetsFairValueDisclosureMember gs:MarketMakingMember 2020-01-01 2020-03-31 0000886982 gs:TradingCashInstrumentsAssetsFairValueDisclosureMember gs:InvestmentBankingMember 2020-01-01 2020-03-31 0000886982 us-gaap:InterestIncomeMember gs:TradingCashInstrumentsAssetsFairValueDisclosureMember 2020-01-01 2020-03-31 0000886982 gs:TradingCashInstrumentsAssetsFairValueDisclosureMember 2020-01-01 2020-03-31 0000886982 us-gaap:InterestRateContractMember 2020-01-01 2020-03-31 0000886982 us-gaap:CreditRiskContractMember 2020-01-01 2020-03-31 0000886982 us-gaap:ForeignExchangeContractMember 2020-01-01 2020-03-31 0000886982 us-gaap:CommodityContractMember 2020-01-01 2020-03-31 0000886982 us-gaap:EquityContractMember 2020-01-01 2020-03-31 0000886982 gs:DebtValuationAdjustmentMember 2020-01-01 2020-03-31 0000886982 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-01-01 2020-03-31 0000886982 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-03-31 0000886982 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0000886982 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-03-31 0000886982 gs:OtherPrincipalTransactionsMember 2020-01-01 2020-03-31 0000886982 gs:SubsidiaryThreeMember 2020-01-01 2020-03-31 0000886982 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-01-01 2020-03-31 0000886982 gs:MarketMakingMember 2020-01-01 2020-03-31 0000886982 gs:OtherPrincipalTransactionsMember 2020-01-01 2020-03-31 0000886982 gs:BaselThreeAdvancedRulesMember 2020-01-01 2020-03-31 0000886982 gs:HybridCapitalRulesMember 2020-01-01 2020-03-31 0000886982 us-gaap:StateAndLocalJurisdictionMember 2020-01-01 2020-03-31 0000886982 us-gaap:ForeignCountryMember country:GB 2020-01-01 2020-03-31 0000886982 us-gaap:ForeignCountryMember country:JP 2020-01-01 2020-03-31 0000886982 us-gaap:ForeignCountryMember country:HK 2020-01-01 2020-03-31 0000886982 us-gaap:DomesticCountryMember 2020-01-01 2020-03-31 0000886982 us-gaap:SeriesAPreferredStockMember 2020-01-01 2020-03-31 0000886982 us-gaap:SeriesCPreferredStockMember 2020-01-01 2020-03-31 0000886982 us-gaap:SeriesDPreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesJPreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesKPreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesLPreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesNPreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesQPreferredStockMember 2020-01-01 2020-03-31 0000886982 us-gaap:SeriesEPreferredStockMember 2020-01-01 2020-03-31 0000886982 us-gaap:SeriesFPreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember 2020-01-01 2020-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember 2020-01-01 2020-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByResidentialRealEstateMember 2020-01-01 2020-03-31 0000886982 gs:OtherCashInstrumentsMember gs:TradingCashInstrumentsAssetsMember 2020-01-01 2020-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:CorporateLoansAndDebtSecuritiesMember 2020-01-01 2020-03-31 0000886982 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0000886982 us-gaap:PreferredStockMember 2020-01-01 2020-03-31 0000886982 srt:MaximumMember 2020-01-01 2020-03-31 0000886982 gs:RestrictedStockUnitsAndEmployeeStockOptionsMember 2020-01-01 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:OtherSecuredFinancingsAtFairValueMember 2020-01-01 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember us-gaap:DepositsMember 2020-01-01 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:UnsecuredShortTermBorrowingsIncludingCurrentPortionOfUnsecuredLongTermBorrowingsAtFairValueMember 2020-01-01 2020-03-31 0000886982 gs:UnsecuredLongTermBorrowingsAtFairValueMember gs:OtherFinancialLiabilitiesMember 2020-01-01 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember us-gaap:OtherLiabilitiesMember 2020-01-01 2020-03-31 0000886982 gs:ResidentialMortgageBackedSecuritiesWorkingGroupMember 2020-01-01 2020-03-31 0000886982 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:MarketMakingMember 2020-01-01 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:OtherPrincipalTransactionsMember 2020-01-01 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:DebtValuationAdjustmentMember 2020-01-01 2020-03-31 0000886982 gs:RepurchaseAgreementsAtFairValueMember gs:OtherFinancialLiabilitiesMember 2020-01-01 2020-03-31 0000886982 gs:CapitalIMember 2020-01-01 2020-03-31 0000886982 gs:SeriesMPreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesOPreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesPPreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesRPreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesSPreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:StandardizedCapitalRulesMember gs:DerivativesMember 2020-01-01 2020-03-31 0000886982 gs:AdvancedCapitalMember gs:DerivativesMember 2020-01-01 2020-03-31 0000886982 gs:StandardizedCapitalRulesMember gs:CommitmentsGuaranteesAndLoansMember 2020-01-01 2020-03-31 0000886982 gs:AdvancedCapitalMember gs:CommitmentsGuaranteesAndLoansMember 2020-01-01 2020-03-31 0000886982 gs:StandardizedCapitalRulesMember gs:SecuritiesFinancingTransactionsMember 2020-01-01 2020-03-31 0000886982 gs:AdvancedCapitalMember gs:SecuritiesFinancingTransactionsMember 2020-01-01 2020-03-31 0000886982 gs:StandardizedCapitalRulesMember gs:EquityInvestmentsMember 2020-01-01 2020-03-31 0000886982 gs:AdvancedCapitalMember gs:EquityInvestmentsMember 2020-01-01 2020-03-31 0000886982 gs:StandardizedCapitalRulesMember gs:OthersMember 2020-01-01 2020-03-31 0000886982 gs:AdvancedCapitalMember gs:OthersMember 2020-01-01 2020-03-31 0000886982 gs:StandardizedCapitalRulesMember gs:RegulatoryVarMember 2020-01-01 2020-03-31 0000886982 gs:AdvancedCapitalMember gs:RegulatoryVarMember 2020-01-01 2020-03-31 0000886982 gs:StandardizedCapitalRulesMember gs:StressedVarMember 2020-01-01 2020-03-31 0000886982 gs:AdvancedCapitalMember gs:StressedVarMember 2020-01-01 2020-03-31 0000886982 gs:StandardizedCapitalRulesMember gs:IncrementalRiskMember 2020-01-01 2020-03-31 0000886982 gs:AdvancedCapitalMember gs:IncrementalRiskMember 2020-01-01 2020-03-31 0000886982 gs:StandardizedCapitalRulesMember gs:ComprehensiveRiskMember 2020-01-01 2020-03-31 0000886982 gs:AdvancedCapitalMember gs:ComprehensiveRiskMember 2020-01-01 2020-03-31 0000886982 gs:StandardizedCapitalRulesMember gs:SpecificRiskMember 2020-01-01 2020-03-31 0000886982 gs:AdvancedCapitalMember gs:SpecificRiskMember 2020-01-01 2020-03-31 0000886982 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0000886982 gs:TradingCashInstrumentsLiabilitiesMember 2020-01-01 2020-03-31 0000886982 us-gaap:AccountingStandardsUpdate201602Member us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0000886982 us-gaap:TreasuryStockMember 2020-01-01 2020-03-31 0000886982 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0000886982 gs:MalaysiaDevelopmentBerhadMember gs:OfferingsOfDebtSecuritiesMember 2020-01-01 2020-03-31 0000886982 gs:MalaysiaDevelopmentBerhadMember gs:OfferingsOfDebtSecuritiesMember gs:FeesReceivedMember 2020-01-01 2020-03-31 0000886982 us-gaap:OtherIntangibleAssetsMember 2020-01-01 2020-03-31 0000886982 gs:SeriesAMediumTermNotesIndexLinkedNotesDue2037OfGsFinanceCorpMember 2020-01-01 2020-03-31 0000886982 gs:SeriesBMediumTermNotesIndexLinkedNotesDue2037Member 2020-01-01 2020-03-31 0000886982 gs:FivePointSevenNineThreePercentageFixedToFloatingRateNormalApexMember 2020-01-01 2020-03-31 0000886982 gs:FloatingRateNormalApexMember 2020-01-01 2020-03-31 0000886982 gs:SeriesKSixPointThreeSevenFivePercentageFixedToFloatingRatePreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesNSixPointThreeZeroPercentagePreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesDFloatingRatePreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesJFivePointFiveZeroPercentageFixedToFloatingRatePreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesAFloatingRatePreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SeriesCFloatingRatePreferredStockMember 2020-01-01 2020-03-31 0000886982 gs:SerieseMediumTermNotesIndexLinkedNotesDue2028OfGsFinanceCorpMember 2020-01-01 2020-03-31 0000886982 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0000886982 us-gaap:InvestmentsMember 2020-01-01 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember 2020-01-01 2020-03-31 0000886982 us-gaap:LoansReceivableMember 2020-01-01 2020-03-31 0000886982 gs:CorporateLoansMember 2020-01-01 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember 2020-01-01 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember 2020-01-01 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:SecuredLoansAndLeasesReceivableMember us-gaap:InternalInvestmentGradeMember 2020-01-01 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:SecuredLoansAndLeasesReceivableMember us-gaap:InternalNoninvestmentGradeMember 2020-01-01 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:SecuredLoansAndLeasesReceivableMember gs:UnratedMember 2020-01-01 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:SecuredLoansAndLeasesReceivableMember 2020-01-01 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnsecuredLoansAndLeasesReceivableMember us-gaap:InternalInvestmentGradeMember 2020-01-01 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnsecuredLoansAndLeasesReceivableMember us-gaap:InternalNoninvestmentGradeMember 2020-01-01 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnsecuredLoansAndLeasesReceivableMember gs:UnratedMember 2020-01-01 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:UnsecuredLoansAndLeasesReceivableMember 2020-01-01 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember 2020-01-01 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember 2020-01-01 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2020-01-01 2020-03-31 0000886982 gs:InternallyRatedLoansMember 2020-01-01 2020-03-31 0000886982 gs:FicoScoreGreaterThan660Member exch:FICO 2020-01-01 2020-03-31 0000886982 gs:FicoScoreLessThan600Member exch:FICO 2020-01-01 2020-03-31 0000886982 exch:FICO 2020-01-01 2020-03-31 0000886982 srt:AmericasMember gs:OtherLoansMember 2020-01-01 2020-03-31 0000886982 us-gaap:EMEAMember gs:OtherLoansMember 2020-01-01 2020-03-31 0000886982 srt:AsiaMember gs:OtherLoansMember 2020-01-01 2020-03-31 0000886982 gs:OtherLoansMember 2020-01-01 2020-03-31 0000886982 srt:AmericasMember us-gaap:CreditCardReceivablesMember 2020-01-01 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember 2020-01-01 2020-03-31 0000886982 srt:AmericasMember gs:InstallmentLoansMember 2020-01-01 2020-03-31 0000886982 gs:InstallmentLoansMember 2020-01-01 2020-03-31 0000886982 srt:AmericasMember gs:ResidentialRealEstateLoansMember 2020-01-01 2020-03-31 0000886982 us-gaap:EMEAMember gs:ResidentialRealEstateLoansMember 2020-01-01 2020-03-31 0000886982 srt:AsiaMember gs:ResidentialRealEstateLoansMember 2020-01-01 2020-03-31 0000886982 srt:AmericasMember gs:CommercialRealEstateLoansMember 2020-01-01 2020-03-31 0000886982 us-gaap:EMEAMember gs:CommercialRealEstateLoansMember 2020-01-01 2020-03-31 0000886982 srt:AsiaMember gs:CommercialRealEstateLoansMember 2020-01-01 2020-03-31 0000886982 srt:AmericasMember gs:WealthManagementAndOtherLoansMember 2020-01-01 2020-03-31 0000886982 us-gaap:EMEAMember gs:WealthManagementAndOtherLoansMember 2020-01-01 2020-03-31 0000886982 srt:AsiaMember gs:WealthManagementAndOtherLoansMember 2020-01-01 2020-03-31 0000886982 srt:AmericasMember gs:CorporateLoansMember 2020-01-01 2020-03-31 0000886982 us-gaap:EMEAMember gs:CorporateLoansMember 2020-01-01 2020-03-31 0000886982 srt:AsiaMember gs:CorporateLoansMember 2020-01-01 2020-03-31 0000886982 gs:ConsumerRetailHealthcareMember 2020-01-01 2020-03-31 0000886982 gs:DiversifiedIndustrialsMember 2020-01-01 2020-03-31 0000886982 gs:FinancialInstitutionsMember 2020-01-01 2020-03-31 0000886982 gs:FundsMember 2020-01-01 2020-03-31 0000886982 gs:NaturalResourcesUtilitiesMember 2020-01-01 2020-03-31 0000886982 us-gaap:RealEstateLoanMember 2020-01-01 2020-03-31 0000886982 gs:TechnologyMediaTelecommunicationsMember 2020-01-01 2020-03-31 0000886982 gs:OtherMember 2020-01-01 2020-03-31 0000886982 us-gaap:OtherDebtSecuritiesMember us-gaap:InvestmentsMember 2020-01-01 2020-03-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember us-gaap:InvestmentsMember 2020-01-01 2020-03-31 0000886982 us-gaap:EquitySecuritiesMember us-gaap:InvestmentsMember 2020-01-01 2020-03-31 0000886982 gs:SecuritiesBackedByRealEstateMember us-gaap:InvestmentsMember 2020-01-01 2020-03-31 0000886982 us-gaap:FairValueOptionOtherEligibleItemsMember 2020-01-01 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:FairValueInputsLevel3Member 2020-01-01 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:OperatingIncomeLossMember 2020-01-01 2020-03-31 0000886982 us-gaap:InterestIncomeMember us-gaap:InvestmentsMember 2020-01-01 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member 2020-01-01 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:OtherPrincipalTransactionsMember 2020-01-01 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:InterestIncomeMember 2020-01-01 2020-03-31 0000886982 us-gaap:GeographicConcentrationRiskMember 2020-01-01 2020-03-31 0000886982 gs:IndustryConcentrationRiskMember 2020-01-01 2020-03-31 0000886982 gs:InstallmentLoansMember stpr:CA 2020-01-01 2020-03-31 0000886982 stpr:TX gs:InstallmentLoansMember 2020-01-01 2020-03-31 0000886982 stpr:NY gs:InstallmentLoansMember 2020-01-01 2020-03-31 0000886982 stpr:FL gs:InstallmentLoansMember 2020-01-01 2020-03-31 0000886982 stpr:IL gs:InstallmentLoansMember 2020-01-01 2020-03-31 0000886982 gs:OtherUsStatesMember gs:InstallmentLoansMember 2020-01-01 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember stpr:CA 2020-01-01 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember stpr:TX 2020-01-01 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember stpr:NY 2020-01-01 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember stpr:FL 2020-01-01 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember stpr:IL 2020-01-01 2020-03-31 0000886982 gs:OtherUsStatesMember us-gaap:CreditCardReceivablesMember 2020-01-01 2020-03-31 0000886982 gs:SubsidiaryThreeMember 2019-12-31 0000886982 gs:DerivativeGuaranteeMember 2019-12-31 0000886982 us-gaap:MortgageBackedSecuritiesMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 currency:USD 2019-12-31 0000886982 gs:NonUSDollarMember 2019-12-31 0000886982 us-gaap:OtherIntangibleAssetsMember 2019-12-31 0000886982 us-gaap:CustomerListsMember 2019-12-31 0000886982 us-gaap:SubordinatedDebtMember 2019-12-31 0000886982 us-gaap:JuniorSubordinatedDebtMember 2019-12-31 0000886982 gs:StandardizedCapitalRulesMember 2019-12-31 0000886982 gs:USGovernmentAndFederalAgencyObligationsHeldByFirmMember 2019-12-31 0000886982 gs:NonUSGovernmentAndAgencyObligationsHeldByFirmMember 2019-12-31 0000886982 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2019-12-31 0000886982 gs:OneNotchReductionMember 2019-12-31 0000886982 gs:TwoNotchReductionMember 2019-12-31 0000886982 us-gaap:DesignatedAsHedgingInstrumentMember gs:UnsecuredLongTermBorrowingsMember 2019-12-31 0000886982 gs:OtherRetainedInterestsMember 2019-12-31 0000886982 us-gaap:ResidentialMortgageBackedSecuritiesMember 2019-12-31 0000886982 us-gaap:CommercialMortgageBackedSecuritiesMember 2019-12-31 0000886982 gs:CorporateDebtAndOtherAssetBackedSecuritiesMember 2019-12-31 0000886982 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2019-12-31 0000886982 gs:InvestmentBankingMember 2019-12-31 0000886982 gs:GlobalMarketsMember 2019-12-31 0000886982 gs:AssetManagementMember 2019-12-31 0000886982 gs:ConsumerAndWealthManagementMember 2019-12-31 0000886982 gs:InvestmentGradeCommercialLendingRelationshipLendingActivitiesMember 2019-12-31 0000886982 gs:InvestmentGradeCommercialLendingOtherInvestmentBankingActivitiesMember 2019-12-31 0000886982 gs:AdvancedCapitalMember 2019-12-31 0000886982 gs:SubsidiaryThreeMember gs:StandardizedCapitalRulesMember 2019-12-31 0000886982 gs:SubsidiaryThreeMember gs:AdvancedCapitalMember 2019-12-31 0000886982 gs:PrivateBankDepositsMember 2019-12-31 0000886982 gs:TransactionBankingMember 2019-12-31 0000886982 gs:ConsumerDepositsMember 2019-12-31 0000886982 gs:DepositSweepProgramsMember 2019-12-31 0000886982 gs:ConsolidatedVariableInterestEntityCarryingAmountMember 2019-12-31 0000886982 gs:RealEstateCreditRelatedAndOtherInvestingMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:TradingCashInstrumentMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:DepositsMember 2019-12-31 0000886982 us-gaap:DesignatedAsHedgingInstrumentMember gs:UnsecuredShortTermBorrowingsMember 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:AmortizedCostMember 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember gs:AmortizedCostMember 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember gs:AmortizedCostMember 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember gs:AmortizedCostMember 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember 2019-12-31 0000886982 gs:OtherLoansMember gs:AmortizedCostMember 2019-12-31 0000886982 gs:OtherLoansMember 2019-12-31 0000886982 gs:AmortizedCostMember 2019-12-31 0000886982 gs:AmortizedCostMember gs:CorporateLoansMember 2019-12-31 0000886982 gs:CorporateLoansMember 2019-12-31 0000886982 gs:InstallmentMember gs:AmortizedCostMember 2019-12-31 0000886982 gs:InstallmentMember 2019-12-31 0000886982 gs:BrokeredCertificatesOfDepositMember 2019-12-31 0000886982 gs:OtherDepositsMember 2019-12-31 0000886982 us-gaap:USGovernmentDebtSecuritiesMember gs:LessThanFiveYearsMember 2019-12-31 0000886982 gs:SecuritiesBackedByRealEstateMember 2019-12-31 0000886982 gs:GreaterThanFiveYearsMember us-gaap:USGovernmentDebtSecuritiesMember 2019-12-31 0000886982 us-gaap:USGovernmentDebtSecuritiesMember 2019-12-31 0000886982 gs:LessThanFiveYearsMember gs:SecuritiesBackedByRealEstateMember 2019-12-31 0000886982 gs:GreaterThanFiveYearsMember gs:SecuritiesBackedByRealEstateMember 2019-12-31 0000886982 gs:CapitalIMember 2019-12-31 0000886982 gs:PrincipalProtectedNotesMember 2019-12-31 0000886982 gs:GlobalMarketsFixedIncomeCurrencyAndCommoditiesMember 2019-12-31 0000886982 gs:GlobalMarketsEquitiesMember 2019-12-31 0000886982 gs:ConsumerBankingMember 2019-12-31 0000886982 gs:WealthManagementMember 2019-12-31 0000886982 gs:FairValueMember 2019-12-31 0000886982 gs:HeldForSaleMember 2019-12-31 0000886982 gs:EuropeanHeadquartersInLondonMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 gs:InvestmentsInFundsMeasuredAtNavMember 2019-12-31 0000886982 gs:CounterpartyAndCashCollateralNettingAdjustmentMember 2019-12-31 0000886982 us-gaap:FinancialGuaranteeMember 2019-12-31 0000886982 gs:MoneyMarketInstrumentsMember 2019-12-31 0000886982 us-gaap:USTreasuryAndGovernmentMember 2019-12-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember 2019-12-31 0000886982 gs:SecuritiesBackedByCommercialRealEstateMember 2019-12-31 0000886982 gs:SecuritiesBackedByResidentialRealEstateMember 2019-12-31 0000886982 us-gaap:CorporateDebtSecuritiesMember 2019-12-31 0000886982 us-gaap:USStatesAndPoliticalSubdivisionsMember 2019-12-31 0000886982 us-gaap:OtherDebtSecuritiesMember 2019-12-31 0000886982 us-gaap:EquitySecuritiesMember 2019-12-31 0000886982 currency:USD us-gaap:UnsecuredDebtMember srt:MinimumMember 2019-12-31 0000886982 currency:USD us-gaap:UnsecuredDebtMember srt:MaximumMember 2019-12-31 0000886982 currency:USD us-gaap:UnsecuredDebtMember srt:WeightedAverageMember 2019-12-31 0000886982 gs:NonUSDollarMember us-gaap:UnsecuredDebtMember srt:MinimumMember 2019-12-31 0000886982 gs:NonUSDollarMember us-gaap:UnsecuredDebtMember srt:MaximumMember 2019-12-31 0000886982 gs:NonUSDollarMember us-gaap:UnsecuredDebtMember srt:WeightedAverageMember 2019-12-31 0000886982 gs:NonInvestmentGradeCommercialLendingMember 2019-12-31 0000886982 gs:WarehouseFinancingMember 2019-12-31 0000886982 us-gaap:CreditCardMember 2019-12-31 0000886982 gs:InvestmentGradeCommercialLendingMember 2019-12-31 0000886982 gs:MaturitiesYearOneMember gs:DerivativeGuaranteeMember 2019-12-31 0000886982 gs:MaturitiesYearOneMember gs:SecuritiesLendingIndemnificationMember 2019-12-31 0000886982 gs:MaturitiesYearOneMember us-gaap:FinancialGuaranteeMember 2019-12-31 0000886982 gs:SecuritiesLendingIndemnificationMember 2019-12-31 0000886982 gs:DerivativeGuaranteeMember gs:MaturitiesYearTwoAndYearThreeMember 2019-12-31 0000886982 us-gaap:FinancialGuaranteeMember gs:MaturitiesYearTwoAndYearThreeMember 2019-12-31 0000886982 gs:DerivativeGuaranteeMember gs:MaturitiesYearFourAndYearFiveMember 2019-12-31 0000886982 us-gaap:FinancialGuaranteeMember gs:MaturitiesYearFourAndYearFiveMember 2019-12-31 0000886982 gs:DerivativeGuaranteeMember gs:MaturitiesYearSixAndThereafterMember 2019-12-31 0000886982 us-gaap:FinancialGuaranteeMember gs:MaturitiesYearSixAndThereafterMember 2019-12-31 0000886982 gs:FinancialAssetEqualToOrGreaterThan30DaysPastDueMember 2019-12-31 0000886982 us-gaap:MortgageBackedSecuritiesMember 2019-12-31 0000886982 gs:RealEstateCreditAndPowerRelatedAndOtherInvestingMember 2019-12-31 0000886982 gs:InvestmentInFundMember 2019-12-31 0000886982 gs:CorporateDebtAndOtherAssetBackedSecuritiesMember gs:RetainedInterestsMaximumExposureToLossMember 2019-12-31 0000886982 gs:InvestmentInFundMember gs:CommitmentsAndGuaranteesMaximumExposureToLossMember 2019-12-31 0000886982 gs:RealEstateCreditAndPowerRelatedAndOtherInvestingMember gs:CommitmentsAndGuaranteesMaximumExposureToLossMember 2019-12-31 0000886982 us-gaap:MortgageBackedSecuritiesMember gs:RetainedInterestsMaximumExposureToLossMember 2019-12-31 0000886982 gs:RetainedInterestsMaximumExposureToLossMember 2019-12-31 0000886982 gs:PurchasedInterestsMaximumExposureToLossMember 2019-12-31 0000886982 gs:CommitmentsAndGuaranteesMaximumExposureToLossMember 2019-12-31 0000886982 gs:DerivativesMaximumExposureToLossMember 2019-12-31 0000886982 gs:DebtAndEquityMaximumExposureToLossMember 2019-12-31 0000886982 gs:PurchasedInterestsMaximumExposureToLossMember us-gaap:MortgageBackedSecuritiesMember 2019-12-31 0000886982 gs:CommitmentsAndGuaranteesMaximumExposureToLossMember us-gaap:MortgageBackedSecuritiesMember 2019-12-31 0000886982 gs:DerivativesMaximumExposureToLossMember us-gaap:MortgageBackedSecuritiesMember 2019-12-31 0000886982 gs:DerivativesMaximumExposureToLossMember gs:RealEstateCreditAndPowerRelatedAndOtherInvestingMember 2019-12-31 0000886982 gs:DebtAndEquityMaximumExposureToLossMember gs:RealEstateCreditAndPowerRelatedAndOtherInvestingMember 2019-12-31 0000886982 gs:PurchasedInterestsMaximumExposureToLossMember gs:CorporateDebtAndOtherAssetBackedSecuritiesMember 2019-12-31 0000886982 gs:CommitmentsAndGuaranteesMaximumExposureToLossMember gs:CorporateDebtAndOtherAssetBackedSecuritiesMember 2019-12-31 0000886982 gs:DerivativesMaximumExposureToLossMember gs:CorporateDebtAndOtherAssetBackedSecuritiesMember 2019-12-31 0000886982 gs:DebtAndEquityMaximumExposureToLossMember gs:CorporateDebtAndOtherAssetBackedSecuritiesMember 2019-12-31 0000886982 gs:DerivativesMaximumExposureToLossMember gs:InvestmentInFundMember 2019-12-31 0000886982 gs:DebtAndEquityMaximumExposureToLossMember gs:InvestmentInFundMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember gs:DerivativesByTenorTwoMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember gs:DerivativesByTenorTwoMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember gs:DerivativesByTenorTwoMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember gs:DerivativesByTenorTwoMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember gs:DerivativesByTenorThreeMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember gs:DerivativesByTenorThreeMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember gs:DerivativesByTenorThreeMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember gs:DerivativesByTenorThreeMember 2019-12-31 0000886982 gs:DerivativesByTenorOneMember gs:CreditSpreadOnUnderlyingBasisPointsOneMember 2019-12-31 0000886982 gs:DerivativesByTenorOneMember gs:CreditSpreadOnUnderlyingBasisPointsTwoMember 2019-12-31 0000886982 gs:DerivativesByTenorOneMember gs:CreditSpreadOnUnderlyingBasisPointsThreeMember 2019-12-31 0000886982 gs:DerivativesByTenorOneMember gs:CreditSpreadOnUnderlyingBasisPointsFourMember 2019-12-31 0000886982 gs:DerivativesByTenorOneMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember 2019-12-31 0000886982 gs:DerivativesByTenorTwoMember 2019-12-31 0000886982 gs:DerivativesByTenorThreeMember 2019-12-31 0000886982 gs:DerivativesMember gs:StandardizedCapitalRulesMember 2019-12-31 0000886982 gs:DerivativesMember gs:AdvancedCapitalMember 2019-12-31 0000886982 gs:CommitmentsGuaranteesAndLoansMember gs:StandardizedCapitalRulesMember 2019-12-31 0000886982 gs:CommitmentsGuaranteesAndLoansMember gs:AdvancedCapitalMember 2019-12-31 0000886982 gs:SecuritiesFinancingTransactionsMember gs:StandardizedCapitalRulesMember 2019-12-31 0000886982 gs:SecuritiesFinancingTransactionsMember gs:AdvancedCapitalMember 2019-12-31 0000886982 gs:EquityInvestmentsMember gs:StandardizedCapitalRulesMember 2019-12-31 0000886982 gs:EquityInvestmentsMember gs:AdvancedCapitalMember 2019-12-31 0000886982 gs:OthersMember gs:StandardizedCapitalRulesMember 2019-12-31 0000886982 gs:OthersMember gs:AdvancedCapitalMember 2019-12-31 0000886982 us-gaap:InterestRateContractMember us-gaap:NondesignatedMember us-gaap:ExchangeTradedMember 2019-12-31 0000886982 us-gaap:ExchangeClearedMember us-gaap:NondesignatedMember us-gaap:InterestRateContractMember 2019-12-31 0000886982 us-gaap:InterestRateContractMember us-gaap:NondesignatedMember gs:BilateralOtcMember 2019-12-31 0000886982 us-gaap:NondesignatedMember us-gaap:InterestRateContractMember 2019-12-31 0000886982 us-gaap:ExchangeClearedMember us-gaap:NondesignatedMember us-gaap:CreditRiskContractMember 2019-12-31 0000886982 us-gaap:CreditRiskContractMember us-gaap:NondesignatedMember gs:BilateralOtcMember 2019-12-31 0000886982 us-gaap:NondesignatedMember us-gaap:CreditRiskContractMember 2019-12-31 0000886982 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember us-gaap:ExchangeTradedMember 2019-12-31 0000886982 us-gaap:ExchangeClearedMember us-gaap:NondesignatedMember us-gaap:ForeignExchangeContractMember 2019-12-31 0000886982 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember gs:BilateralOtcMember 2019-12-31 0000886982 us-gaap:NondesignatedMember us-gaap:ForeignExchangeContractMember 2019-12-31 0000886982 us-gaap:CommodityContractMember us-gaap:NondesignatedMember us-gaap:ExchangeTradedMember 2019-12-31 0000886982 us-gaap:ExchangeClearedMember us-gaap:NondesignatedMember us-gaap:CommodityContractMember 2019-12-31 0000886982 gs:BilateralOtcMember us-gaap:NondesignatedMember us-gaap:CommodityContractMember 2019-12-31 0000886982 us-gaap:CommodityContractMember us-gaap:NondesignatedMember 2019-12-31 0000886982 us-gaap:EquityContractMember us-gaap:NondesignatedMember us-gaap:ExchangeTradedMember 2019-12-31 0000886982 gs:BilateralOtcMember us-gaap:NondesignatedMember us-gaap:EquityContractMember 2019-12-31 0000886982 us-gaap:EquityContractMember us-gaap:NondesignatedMember 2019-12-31 0000886982 us-gaap:NondesignatedMember 2019-12-31 0000886982 gs:BilateralOtcMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateContractMember 2019-12-31 0000886982 us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000886982 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ExchangeClearedMember us-gaap:ForeignExchangeContractMember 2019-12-31 0000886982 gs:BilateralOtcMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ForeignExchangeContractMember 2019-12-31 0000886982 us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000886982 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ForeignExchangeContractMember 2019-12-31 0000886982 us-gaap:WrittenLoanCommitmentFairValueOptionMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember gs:OffsettingPurchasedCreditDerivativesMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember gs:OffsettingPurchasedCreditDerivativesMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember gs:OffsettingPurchasedCreditDerivativesMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember gs:OffsettingPurchasedCreditDerivativesMember 2019-12-31 0000886982 gs:OffsettingPurchasedCreditDerivativesMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember gs:OtherPurchasedCreditDerivativesMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember gs:OtherPurchasedCreditDerivativesMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember gs:OtherPurchasedCreditDerivativesMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember gs:OtherPurchasedCreditDerivativesMember 2019-12-31 0000886982 gs:OtherPurchasedCreditDerivativesMember 2019-12-31 0000886982 us-gaap:OverTheCounterMember gs:CounterpartyAndCashCollateralNettingAdjustmentMember 2019-12-31 0000886982 gs:DerivativesByTenorOneMember us-gaap:OverTheCounterMember us-gaap:InterestRateContractMember 2019-12-31 0000886982 gs:DerivativesByTenorTwoMember us-gaap:OverTheCounterMember us-gaap:InterestRateContractMember 2019-12-31 0000886982 gs:DerivativesByTenorThreeMember us-gaap:OverTheCounterMember us-gaap:InterestRateContractMember 2019-12-31 0000886982 us-gaap:OverTheCounterMember us-gaap:InterestRateContractMember 2019-12-31 0000886982 gs:DerivativesByTenorOneMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 gs:DerivativesByTenorTwoMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 gs:DerivativesByTenorThreeMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:OverTheCounterMember gs:CrossMaturityNettingAdjustmentMember 2019-12-31 0000886982 us-gaap:CreditRiskContractMember gs:DerivativesByTenorOneMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:CreditRiskContractMember gs:DerivativesByTenorTwoMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:CreditRiskContractMember gs:DerivativesByTenorThreeMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:CreditRiskContractMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:ForeignExchangeContractMember gs:DerivativesByTenorOneMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:ForeignExchangeContractMember gs:DerivativesByTenorTwoMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:ForeignExchangeContractMember gs:DerivativesByTenorThreeMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:ForeignExchangeContractMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:CommodityContractMember gs:DerivativesByTenorOneMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:CommodityContractMember gs:DerivativesByTenorTwoMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:CommodityContractMember gs:DerivativesByTenorThreeMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:CommodityContractMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:EquityContractMember gs:DerivativesByTenorOneMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:EquityContractMember gs:DerivativesByTenorTwoMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:EquityContractMember gs:DerivativesByTenorThreeMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:EquityContractMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 gs:CounterpartyNettingAdjustmentWithinTenorsMember gs:DerivativesByTenorOneMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 gs:CounterpartyNettingAdjustmentWithinTenorsMember gs:DerivativesByTenorTwoMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 gs:CounterpartyNettingAdjustmentWithinTenorsMember gs:DerivativesByTenorThreeMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 gs:CounterpartyNettingAdjustmentWithinTenorsMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member us-gaap:CreditRiskContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:CreditRiskContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignExchangeContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignExchangeContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:ForeignExchangeContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member us-gaap:CommodityContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member us-gaap:CommodityContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:CommodityContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel1Member us-gaap:EquityContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member us-gaap:EquityContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member us-gaap:EquityContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:EquityContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel1Member gs:GrossFairValueOfDerivativeMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member gs:GrossFairValueOfDerivativeMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member gs:GrossFairValueOfDerivativeMember 2019-12-31 0000886982 us-gaap:DerivativeMember gs:GrossFairValueOfDerivativeMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member gs:CounterpartyNettingAdjustmentWithinLevelsMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member gs:CounterpartyNettingAdjustmentWithinLevelsMember 2019-12-31 0000886982 us-gaap:DerivativeMember gs:CounterpartyNettingAdjustmentWithinLevelsMember 2019-12-31 0000886982 us-gaap:DerivativeMember gs:CrossLevelCounterpartyNettingAdjustmentMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:InterestRateContractMember 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:DerivativeMember 2019-12-31 0000886982 gs:RegulatoryVarMember gs:StandardizedCapitalRulesMember 2019-12-31 0000886982 gs:RegulatoryVarMember gs:AdvancedCapitalMember 2019-12-31 0000886982 gs:StressedVarMember gs:StandardizedCapitalRulesMember 2019-12-31 0000886982 gs:StressedVarMember gs:AdvancedCapitalMember 2019-12-31 0000886982 gs:IncrementalRiskMember gs:StandardizedCapitalRulesMember 2019-12-31 0000886982 gs:IncrementalRiskMember gs:AdvancedCapitalMember 2019-12-31 0000886982 gs:ComprehensiveRiskMember gs:StandardizedCapitalRulesMember 2019-12-31 0000886982 gs:ComprehensiveRiskMember gs:AdvancedCapitalMember 2019-12-31 0000886982 gs:SpecificRiskMember gs:StandardizedCapitalRulesMember 2019-12-31 0000886982 gs:SpecificRiskMember gs:AdvancedCapitalMember 2019-12-31 0000886982 gs:CashCollateralNettingAdjustmentMember us-gaap:OverTheCounterMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember gs:WrittenCreditDerivativeMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember gs:WrittenCreditDerivativeMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember gs:WrittenCreditDerivativeMember 2019-12-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember gs:WrittenCreditDerivativeMember 2019-12-31 0000886982 gs:WrittenCreditDerivativeMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasuryAndGovernmentMember gs:TradingCashInstrumentsAssetsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasuryAndGovernmentMember gs:TradingCashInstrumentsAssetsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:USTreasuryAndGovernmentMember gs:TradingCashInstrumentsAssetsMember 2019-12-31 0000886982 us-gaap:USTreasuryAndGovernmentMember gs:TradingCashInstrumentsAssetsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel1Member us-gaap:OtherDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member us-gaap:OtherDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:OtherDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember 2019-12-31 0000886982 us-gaap:OtherDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel1Member gs:TradingCashInstrumentsAssetsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:TradingCashInstrumentsAssetsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:TradingCashInstrumentsAssetsMember 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByResidentialRealEstateMember 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByResidentialRealEstateMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByResidentialRealEstateMember 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:CorporateLoansAndDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:TradingCashInstrumentsAssetsMember gs:CorporateLoansAndDebtSecuritiesMember 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:CorporateLoansAndDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:CorporateLoansAndDebtSecuritiesMember 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:TradingCashInstrumentsAssetsMember us-gaap:EquitySecuritiesMember 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember us-gaap:EquitySecuritiesMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:TradingCashInstrumentsAssetsMember us-gaap:CommoditiesInvestmentMember 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember us-gaap:CommoditiesInvestmentMember 2019-12-31 0000886982 gs:UnsecuredLongTermBorrowingsAtFairValueMember 2019-12-31 0000886982 gs:CounterpartyNettingMember us-gaap:ExchangeTradedMember 2019-12-31 0000886982 gs:CounterpartyNettingMember us-gaap:ExchangeClearedMember 2019-12-31 0000886982 gs:BilateralOtcMember gs:CounterpartyNettingMember 2019-12-31 0000886982 gs:CounterpartyNettingMember 2019-12-31 0000886982 us-gaap:ExchangeClearedMember gs:CashCollateralNettingAdjustmentMember 2019-12-31 0000886982 gs:CashCollateralNettingAdjustmentMember 2019-12-31 0000886982 gs:CashCollateralNettingAdjustmentMember gs:BilateralOtcMember 2019-12-31 0000886982 us-gaap:DerivativeMember gs:CashCollateralNettingAdjustmentMember 2019-12-31 0000886982 us-gaap:ExchangeTradedMember 2019-12-31 0000886982 gs:BilateralOtcMember 2019-12-31 0000886982 us-gaap:ExchangeClearedMember 2019-12-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember gs:CashInstrumentsLiabilitiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember gs:CashInstrumentsLiabilitiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 gs:CashInstrumentsLiabilitiesMember us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember gs:CashInstrumentsLiabilitiesMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember 2019-12-31 0000886982 gs:CashInstrumentsLiabilitiesMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:CashInstrumentsLiabilitiesMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember gs:LoansAndSecuritiesBackedByResidentialRealEstateMember 2019-12-31 0000886982 gs:CashInstrumentsLiabilitiesMember gs:LoansAndSecuritiesBackedByResidentialRealEstateMember 2019-12-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember gs:CashInstrumentsLiabilitiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember gs:CorporateLoansAndDebtSecuritiesMember 2019-12-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember gs:CashInstrumentsLiabilitiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember gs:CashInstrumentsLiabilitiesMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2019-12-31 0000886982 gs:CashInstrumentsLiabilitiesMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2019-12-31 0000886982 us-gaap:EquitySecuritiesMember gs:CashInstrumentsLiabilitiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember us-gaap:EquitySecuritiesMember 2019-12-31 0000886982 us-gaap:EquitySecuritiesMember gs:CashInstrumentsLiabilitiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:EquitySecuritiesMember gs:CashInstrumentsLiabilitiesMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember us-gaap:CommoditiesInvestmentMember 2019-12-31 0000886982 gs:CashInstrumentsLiabilitiesMember us-gaap:CommoditiesInvestmentMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasuryAndGovernmentMember gs:CashInstrumentsLiabilitiesMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasuryAndGovernmentMember gs:CashInstrumentsLiabilitiesMember 2019-12-31 0000886982 us-gaap:USTreasuryAndGovernmentMember gs:CashInstrumentsLiabilitiesMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel1Member gs:CashInstrumentsLiabilitiesMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CashInstrumentsLiabilitiesMember 2019-12-31 0000886982 gs:CashInstrumentsLiabilitiesMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:MinimumMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:MaximumMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:MinimumMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:MaximumMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:MinimumMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:MaximumMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:MinimumMember us-gaap:MeasurementInputLossSeverityMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:MaximumMember us-gaap:MeasurementInputLossSeverityMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:MinimumMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:MaximumMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:MinimumMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:MaximumMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member srt:WeightedAverageMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember us-gaap:MeasurementInputExpectedTermMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:WeightedAverageMember us-gaap:MeasurementInputExpectedTermMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:WeightedAverageMember us-gaap:MeasurementInputExpectedTermMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:WeightedAverageMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:WeightedAverageMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:WeightedAverageMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:WeightedAverageMember us-gaap:MeasurementInputLossSeverityMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:WeightedAverageMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:WeightedAverageMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2019-12-31 0000886982 gs:LoansAndSecuritiesBackedByCommercialRealEstateMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:LoansAndSecuritiesBackedByResidentialRealEstateMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:ExchangeClearedMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateContractMember 2019-12-31 0000886982 gs:SeriesLPreferredStockMember 2019-12-31 0000886982 us-gaap:SeriesBPreferredStockMember 2019-12-31 0000886982 us-gaap:InterestRateContractMember 2019-12-31 0000886982 us-gaap:CreditRiskContractMember 2019-12-31 0000886982 us-gaap:ForeignExchangeContractMember 2019-12-31 0000886982 us-gaap:CommodityContractMember 2019-12-31 0000886982 us-gaap:EquityContractMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:InterestRateContractMember srt:MinimumMember gs:MeasurementInputCorrelationMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:InterestRateContractMember srt:MaximumMember gs:MeasurementInputCorrelationMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:InterestRateContractMember gs:MeasurementInputMedianCorrelationMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignExchangeContractMember srt:MinimumMember gs:MeasurementInputCorrelationMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignExchangeContractMember srt:MaximumMember gs:MeasurementInputCorrelationMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignExchangeContractMember gs:MeasurementInputMedianCorrelationMember 2019-12-31 0000886982 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember gs:MeasurementInputCorrelationMember 2019-12-31 0000886982 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember gs:MeasurementInputCorrelationMember 2019-12-31 0000886982 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageCorrelationMember 2019-12-31 0000886982 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputMedianCorrelationMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:EquityContractMember srt:MinimumMember us-gaap:MeasurementInputPriceVolatilityMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:EquityContractMember srt:MaximumMember us-gaap:MeasurementInputPriceVolatilityMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:EquityContractMember gs:MeasurementInputMedianVolatilityMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember srt:MinimumMember gs:MeasurementInputRecoveryRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember srt:MaximumMember gs:MeasurementInputRecoveryRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember gs:MeasurementInputMedianRecoveryRateMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CommodityContractMember srt:MinimumMember us-gaap:MeasurementInputPriceVolatilityMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CommodityContractMember srt:MaximumMember us-gaap:MeasurementInputPriceVolatilityMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CommodityContractMember gs:MeasurementInputMedianVolatilityMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CommodityContractMember srt:OilReservesMember srt:MaximumMember gs:MeasurementInputSpreadMember 2019-12-31 0000886982 gs:MeasurementInputAverageSpreadMember us-gaap:FairValueInputsLevel3Member srt:OilReservesMember us-gaap:CommodityContractMember 2019-12-31 0000886982 us-gaap:CommodityContractMember srt:OilReservesMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputMedianSpreadMember 2019-12-31 0000886982 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember us-gaap:MeasurementInputPriceVolatilityMember 2019-12-31 0000886982 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember us-gaap:MeasurementInputPriceVolatilityMember 2019-12-31 0000886982 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageVolatilityMember 2019-12-31 0000886982 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputMedianVolatilityMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember srt:MinimumMember us-gaap:MeasurementInputCreditSpreadMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember srt:MaximumMember us-gaap:MeasurementInputCreditSpreadMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember gs:MeasurementInputAverageCreditSpreadMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember gs:MeasurementInputMedianCreditSpreadMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember srt:MinimumMember gs:MeasurementInputUpfrontCreditPointsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember srt:MaximumMember gs:MeasurementInputUpfrontCreditPointsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember gs:MeasurementInputAverageUpfrontCreditPointsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember gs:MeasurementInputMedianUpfrontCreditPointsMember 2019-12-31 0000886982 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputCorrelationMember 2019-12-31 0000886982 us-gaap:CreditRiskContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageRecoveryRateMember 2019-12-31 0000886982 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageCorrelationMember 2019-12-31 0000886982 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageVolatilityMember 2019-12-31 0000886982 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageVolatilityMember 2019-12-31 0000886982 srt:MinimumMember us-gaap:CommodityContractMember srt:OilReservesMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputSpreadMember 2019-12-31 0000886982 srt:MinimumMember us-gaap:CommodityContractMember srt:NaturalGasReservesMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputSpreadMember 2019-12-31 0000886982 srt:MaximumMember us-gaap:CommodityContractMember srt:NaturalGasReservesMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputSpreadMember 2019-12-31 0000886982 us-gaap:CommodityContractMember srt:NaturalGasReservesMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageSpreadMember 2019-12-31 0000886982 us-gaap:CommodityContractMember srt:NaturalGasReservesMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputMedianSpreadMember 2019-12-31 0000886982 srt:MinimumMember us-gaap:FairValueInputsLevel3Member gs:OtherSecuredFinancingsAtFairValueMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 srt:MaximumMember us-gaap:FairValueInputsLevel3Member gs:OtherSecuredFinancingsAtFairValueMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member gs:OtherSecuredFinancingsAtFairValueMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 srt:MinimumMember us-gaap:FairValueInputsLevel3Member gs:OtherSecuredFinancingsAtFairValueMember us-gaap:MeasurementInputExpectedTermMember 2019-12-31 0000886982 srt:MaximumMember us-gaap:FairValueInputsLevel3Member gs:OtherSecuredFinancingsAtFairValueMember us-gaap:MeasurementInputExpectedTermMember 2019-12-31 0000886982 srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member gs:OtherSecuredFinancingsAtFairValueMember us-gaap:MeasurementInputExpectedTermMember 2019-12-31 0000886982 gs:ConsolidatedVariableInterestEntityCarryingAmountMember 2019-12-31 0000886982 gs:PrincipalProtectedNotesMember 2019-12-31 0000886982 gs:RealEstateCreditRelatedAndOtherInvestingMember 2019-12-31 0000886982 gs:TradingCashInstrumentsFairValueDisclosureMember 2019-12-31 0000886982 gs:PublicEquityMember 2019-12-31 0000886982 gs:PrivateEquityMember 2019-12-31 0000886982 gs:PublicAndPrivateEquityMember 2019-12-31 0000886982 us-gaap:CorporateMember 2019-12-31 0000886982 us-gaap:RealEstateMember 2019-12-31 0000886982 gs:CorporateAndRealEstateMember 2019-12-31 0000886982 srt:AmericasMember 2019-12-31 0000886982 gs:EuropeMiddleEastAndAfricaMember 2019-12-31 0000886982 srt:AsiaMember 2019-12-31 0000886982 gs:AmericasEuropeAndAsiaMember 2019-12-31 0000886982 gs:SecuritiesBackedByRealEstateMember 2019-12-31 0000886982 gs:CashInstrumentsAssetsMember 2019-12-31 0000886982 us-gaap:PrivateEquityFundsMember gs:CashInstrumentsAssetsMember 2019-12-31 0000886982 gs:CashInstrumentsAssetsMember gs:CreditFundsMember 2019-12-31 0000886982 gs:CashInstrumentsAssetsMember us-gaap:HedgeFundsMember 2019-12-31 0000886982 gs:CashInstrumentsAssetsMember us-gaap:RealEstateFundsMember 2019-12-31 0000886982 gs:CashInstrumentsLiabilitiesMember us-gaap:RealEstateFundsMember 2019-12-31 0000886982 gs:CashInstrumentsLiabilitiesMember gs:CreditFundsMember 2019-12-31 0000886982 gs:CashInstrumentsLiabilitiesMember us-gaap:PrivateEquityFundsMember 2019-12-31 0000886982 gs:CashInstrumentsLiabilitiesMember 2019-12-31 0000886982 gs:AmortizedCostMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember gs:InternallyRatedLoansMember 2019-12-31 0000886982 gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember gs:AmortizedCostMember gs:InternallyRatedLoansMember 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:AmortizedCostMember gs:UnratedMember gs:LoansReceivableAndRelatedLendingCommitmentsMember 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:AmortizedCostMember gs:LoansReceivableAndRelatedLendingCommitmentsMember 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2019-12-31 0000886982 gs:InternallyRatedLoansMember 2019-12-31 0000886982 gs:CorporateLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember 2019-12-31 0000886982 gs:CorporateLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember 2019-12-31 0000886982 gs:CorporateLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:CorporateLoansMember 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:InternallyRatedLoansMember 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember gs:InternallyRatedLoansMember 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember gs:InternallyRatedLoansMember 2019-12-31 0000886982 gs:InstallmentLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2019-12-31 0000886982 gs:InstallmentLoansMember gs:InternallyRatedLoansMember 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember gs:InternallyRatedLoansMember 2019-12-31 0000886982 gs:OtherLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember 2019-12-31 0000886982 gs:OtherLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember 2019-12-31 0000886982 gs:OtherLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2019-12-31 0000886982 gs:OtherLoansMember gs:InternallyRatedLoansMember 2019-12-31 0000886982 gs:HeldForSaleMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember 2019-12-31 0000886982 gs:HeldForSaleMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember 2019-12-31 0000886982 gs:HeldForSaleMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2019-12-31 0000886982 gs:HeldForSaleMember gs:InternallyRatedLoansMember 2019-12-31 0000886982 gs:LessThanFiveYearsMember 2019-12-31 0000886982 gs:GreaterThanFiveYearsMember 2019-12-31 0000886982 gs:AmortizedCostMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 gs:AmortizedCostMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:HeldForSaleMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 gs:HeldForSaleMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CorporateLoansMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansMember 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 gs:OtherLoansMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 gs:OtherLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:InvestmentsMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 us-gaap:InvestmentsMember gs:CorporateLoansAndDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 us-gaap:InvestmentsMember gs:CorporateLoansAndDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 us-gaap:InvestmentsMember gs:CorporateLoansAndDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:InvestmentsMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 us-gaap:InvestmentsMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:USTreasurySecuritiesMember 2019-12-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:InvestmentsMember 2019-12-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember us-gaap:InvestmentsMember 2019-12-31 0000886982 gs:SecuritiesBackedByRealEstateMember us-gaap:InvestmentsMember 2019-12-31 0000886982 us-gaap:OtherDebtSecuritiesMember us-gaap:InvestmentsMember 2019-12-31 0000886982 us-gaap:EquitySecuritiesMember us-gaap:InvestmentsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel1Member us-gaap:InvestmentsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel2Member us-gaap:InvestmentsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:InvestmentsMember 2019-12-31 0000886982 us-gaap:InvestmentsMember gs:MoneyMarketInstrumentsMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000886982 us-gaap:InvestmentsMember gs:MoneyMarketInstrumentsMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000886982 us-gaap:InvestmentsMember gs:MoneyMarketInstrumentsMember 2019-12-31 0000886982 gs:InstallmentMember exch:FICO 2019-12-31 0000886982 exch:FICO 2019-12-31 0000886982 exch:FICO us-gaap:CreditCardReceivablesMember 2019-12-31 0000886982 gs:InstallmentLoansMember 2019-12-31 0000886982 gs:CorporateLoansMember 2019-12-31 0000886982 gs:WealthManagementAndOtherMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedDividendRateMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedDividendRateMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MinimumMember gs:MeasurementInputRecoveryRateMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MaximumMember gs:MeasurementInputRecoveryRateMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:WeightedAverageMember us-gaap:MeasurementInputExpectedTermMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MinimumMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 srt:MaximumMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedDividendRateMember gs:WealthManagementAndOtherMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedDividendRateMember gs:WealthManagementAndOtherMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:WeightedAverageMember us-gaap:MeasurementInputExpectedTermMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MinimumMember gs:MeasurementInputRecoveryRateMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MaximumMember gs:MeasurementInputRecoveryRateMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedDividendRateMember gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedDividendRateMember gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:WeightedAverageMember us-gaap:MeasurementInputExpectedTermMember gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember gs:WealthManagementAndOtherMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember gs:WealthManagementAndOtherMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:WeightedAverageMember us-gaap:MeasurementInputExpectedTermMember gs:WealthManagementAndOtherMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:WeightedAverageMember us-gaap:MeasurementInputExpectedDividendRateMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 srt:WeightedAverageMember gs:MeasurementInputRecoveryRateMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CommercialRealEstateLoansMember us-gaap:MeasurementInputExpectedDividendRateMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CommercialRealEstateLoansMember gs:MeasurementInputRecoveryRateMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:ResidentialRealEstateLoansMember us-gaap:MeasurementInputExpectedDividendRateMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:WealthManagementAndOtherMember us-gaap:MeasurementInputExpectedDividendRateMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:CommercialPortfolioSegmentMember 2019-12-31 0000886982 us-gaap:ConsumerPortfolioSegmentMember 2019-12-31 0000886982 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:InvestmentsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:EquitySecuritiesMember us-gaap:MeasurementInputCapRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:EquitySecuritiesMember us-gaap:MeasurementInputDiscountRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedTermMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedTermMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputRevenueMultipleMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputRevenueMultipleMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember us-gaap:MeasurementInputExpectedTermMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:SecuritiesBackedByRealEstateMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:SecuritiesBackedByRealEstateMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:SecuritiesBackedByRealEstateMember us-gaap:MeasurementInputExpectedTermMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:OtherDebtSecuritiesMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:OtherDebtSecuritiesMember us-gaap:MeasurementInputExpectedTermMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputConstantPrepaymentRateMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputConstantPrepaymentRateMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedTermMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedTermMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedTermMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedTermMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputRevenueMultipleMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputRevenueMultipleMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputCapRateMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2019-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputCapRateMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2019-12-31 0000886982 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputRevenueMultipleMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2019-12-31 0000886982 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputRevenueMultipleMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2019-12-31 0000886982 gs:TradingAssetsFairValueDisclosureMember 2019-12-31 0000886982 gs:CorporateLoansMember gs:GlobalMarketsMember 2019-12-31 0000886982 us-gaap:RealEstateMember gs:GlobalMarketsMember 2019-12-31 0000886982 gs:OtherLoansMember gs:GlobalMarketsMember 2019-12-31 0000886982 gs:CorporateLoansMember gs:AssetManagementMember 2019-12-31 0000886982 us-gaap:RealEstateMember gs:AssetManagementMember 2019-12-31 0000886982 gs:OtherLoansMember gs:AssetManagementMember 2019-12-31 0000886982 gs:WealthManagementMember gs:ConsumerAndWealthManagementMember 2019-12-31 0000886982 gs:InvestmentBankingMember gs:CorporateLoansMember 2019-12-31 0000886982 gs:ConsumerAndWealthManagementMember gs:InstallmentMember 2019-12-31 0000886982 gs:ConsumerAndWealthManagementMember us-gaap:CreditCardReceivablesMember 2019-12-31 0000886982 gs:FairValueMember gs:CorporateLoansMember 2019-12-31 0000886982 gs:OtherLoansMember gs:FairValueMember 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember gs:FairValueMember 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:FairValueMember 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember gs:FairValueMember 2019-12-31 0000886982 gs:HeldForSaleMember gs:CorporateLoansMember 2019-12-31 0000886982 gs:OtherLoansMember gs:HeldForSaleMember 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember gs:HeldForSaleMember 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember gs:HeldForSaleMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:InvestmentsMember 2019-12-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:NonTradingFairValueLoansMember 2019-12-31 0000886982 gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:FairValueMember gs:InternallyRatedLoansMember us-gaap:InternalInvestmentGradeMember 2019-12-31 0000886982 gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:FairValueMember gs:InternallyRatedLoansMember us-gaap:InternalNoninvestmentGradeMember 2019-12-31 0000886982 gs:FairValueMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2019-12-31 0000886982 gs:FairValueMember gs:InternallyRatedLoansMember 2019-12-31 0000886982 us-gaap:ConsumerPortfolioSegmentMember gs:InstallmentLoansMember 2019-12-31 0000886982 us-gaap:ConsumerPortfolioSegmentMember us-gaap:CreditCardReceivablesMember 2019-12-31 0000886982 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember 2019-12-31 0000886982 gs:CorporateLoansMember us-gaap:CommercialPortfolioSegmentMember 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember us-gaap:CommercialPortfolioSegmentMember 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember us-gaap:CommercialPortfolioSegmentMember 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember us-gaap:CommercialPortfolioSegmentMember 2019-12-31 0000886982 gs:OtherLoansMember us-gaap:CommercialPortfolioSegmentMember 2019-12-31 0000886982 gs:CorporateLoansMember gs:FinancialAsset30To89DaysPastDueMember 2019-12-31 0000886982 gs:CorporateLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-12-31 0000886982 gs:FinancialAsset30To89DaysPastDueMember 2019-12-31 0000886982 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:FinancialAsset30To89DaysPastDueMember 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember gs:FinancialAsset30To89DaysPastDueMember 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember gs:FinancialAsset30To89DaysPastDueMember 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-12-31 0000886982 gs:InstallmentLoansMember gs:FinancialAsset30To89DaysPastDueMember 2019-12-31 0000886982 gs:InstallmentLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember gs:FinancialAsset30To89DaysPastDueMember 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-12-31 0000886982 gs:OtherLoansMember gs:FinancialAsset30To89DaysPastDueMember 2019-12-31 0000886982 gs:OtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-12-31 0000886982 us-gaap:CommercialPortfolioSegmentMember 2020-03-31 0000886982 us-gaap:ConsumerPortfolioSegmentMember 2020-03-31 0000886982 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember 2020-03-31 0000886982 gs:SubsidiaryThreeMember 2020-03-31 0000886982 gs:DerivativeGuaranteeMember 2020-03-31 0000886982 us-gaap:MortgageBackedSecuritiesMember 2020-03-31 0000886982 us-gaap:UnsecuredDebtMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 currency:USD 2020-03-31 0000886982 gs:NonUSDollarMember 2020-03-31 0000886982 gs:MaturitiesOfDomesticTimeDepositsMember 2020-03-31 0000886982 gs:MaturitiesOfForeignTimeDepositsMember 2020-03-31 0000886982 us-gaap:OtherIntangibleAssetsMember 2020-03-31 0000886982 us-gaap:CustomerListsMember 2020-03-31 0000886982 us-gaap:SubordinatedDebtMember 2020-03-31 0000886982 us-gaap:JuniorSubordinatedDebtMember 2020-03-31 0000886982 gs:StandardizedCapitalRulesMember 2020-03-31 0000886982 us-gaap:LongTermDebtMember 2020-03-31 0000886982 gs:USGovernmentAndFederalAgencyObligationsHeldByFirmMember 2020-03-31 0000886982 gs:NonUSGovernmentAndAgencyObligationsHeldByFirmMember 2020-03-31 0000886982 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2020-03-31 0000886982 gs:OneNotchReductionMember 2020-03-31 0000886982 gs:TwoNotchReductionMember 2020-03-31 0000886982 us-gaap:DesignatedAsHedgingInstrumentMember gs:UnsecuredLongTermBorrowingsMember 2020-03-31 0000886982 gs:OtherRetainedInterestsMember 2020-03-31 0000886982 us-gaap:ResidentialMortgageBackedSecuritiesMember 2020-03-31 0000886982 us-gaap:CommercialMortgageBackedSecuritiesMember 2020-03-31 0000886982 gs:CorporateDebtAndOtherAssetBackedSecuritiesMember 2020-03-31 0000886982 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2020-03-31 0000886982 gs:InvestmentBankingMember 2020-03-31 0000886982 gs:GlobalMarketsMember 2020-03-31 0000886982 gs:AssetManagementMember 2020-03-31 0000886982 gs:ConsumerAndWealthManagementMember 2020-03-31 0000886982 gs:InvestmentGradeCommercialLendingRelationshipLendingActivitiesMember 2020-03-31 0000886982 gs:InvestmentGradeCommercialLendingOtherInvestmentBankingActivitiesMember 2020-03-31 0000886982 gs:AdvancedCapitalMember 2020-03-31 0000886982 gs:SubsidiaryThreeMember gs:StandardizedCapitalRulesMember 2020-03-31 0000886982 gs:SubsidiaryThreeMember gs:AdvancedCapitalMember 2020-03-31 0000886982 gs:PrivateBankDepositsMember 2020-03-31 0000886982 gs:TransactionBankingMember 2020-03-31 0000886982 gs:ConsumerDepositsMember 2020-03-31 0000886982 gs:DepositSweepProgramsMember 2020-03-31 0000886982 gs:ConsolidatedVariableInterestEntityCarryingAmountMember 2020-03-31 0000886982 gs:RealEstateCreditRelatedAndOtherInvestingMember 2020-03-31 0000886982 us-gaap:MaturityOvernightMember 2020-03-31 0000886982 us-gaap:MaturityUpTo30DaysMember 2020-03-31 0000886982 us-gaap:Maturity30To90DaysMember 2020-03-31 0000886982 gs:Maturity91DaysTo1YearMember 2020-03-31 0000886982 gs:MaturityGreaterThan1YearMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:TradingCashInstrumentMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:DepositsMember 2020-03-31 0000886982 us-gaap:DesignatedAsHedgingInstrumentMember gs:UnsecuredShortTermBorrowingsMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:AmortizedCostMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember gs:AmortizedCostMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember gs:AmortizedCostMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember gs:AmortizedCostMember 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember 2020-03-31 0000886982 gs:OtherLoansMember gs:AmortizedCostMember 2020-03-31 0000886982 gs:OtherLoansMember 2020-03-31 0000886982 gs:AmortizedCostMember 2020-03-31 0000886982 gs:CorporateLoansMember gs:AmortizedCostMember 2020-03-31 0000886982 gs:CorporateLoansMember 2020-03-31 0000886982 gs:InstallmentMember gs:AmortizedCostMember 2020-03-31 0000886982 gs:InstallmentMember 2020-03-31 0000886982 gs:BrokeredCertificatesOfDepositMember 2020-03-31 0000886982 gs:OtherDepositsMember 2020-03-31 0000886982 us-gaap:USGovernmentDebtSecuritiesMember gs:LessThanFiveYearsMember 2020-03-31 0000886982 gs:GreaterThanFiveYearsMember us-gaap:USGovernmentDebtSecuritiesMember 2020-03-31 0000886982 us-gaap:USGovernmentDebtSecuritiesMember 2020-03-31 0000886982 gs:LessThanFiveYearsMember gs:SecuritiesBackedByRealEstateMember 2020-03-31 0000886982 gs:GreaterThanFiveYearsMember gs:SecuritiesBackedByRealEstateMember 2020-03-31 0000886982 gs:SecuritiesBackedByRealEstateMember 2020-03-31 0000886982 gs:PrincipalProtectedNotesMember 2020-03-31 0000886982 gs:GlobalMarketsFixedIncomeCurrencyAndCommoditiesMember 2020-03-31 0000886982 gs:GlobalMarketsEquitiesMember 2020-03-31 0000886982 gs:ConsumerBankingMember 2020-03-31 0000886982 gs:WealthManagementMember 2020-03-31 0000886982 gs:FairValueMember 2020-03-31 0000886982 gs:HeldForSaleMember 2020-03-31 0000886982 gs:EuropeanHeadquartersInLondonMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 gs:InvestmentsInFundsMeasuredAtNavMember 2020-03-31 0000886982 gs:CounterpartyAndCashCollateralNettingAdjustmentMember 2020-03-31 0000886982 us-gaap:FinancialGuaranteeMember 2020-03-31 0000886982 gs:CapitalIMember 2020-03-31 0000886982 gs:MoneyMarketInstrumentsMember 2020-03-31 0000886982 us-gaap:USTreasuryAndGovernmentMember 2020-03-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember 2020-03-31 0000886982 gs:SecuritiesBackedByCommercialRealEstateMember 2020-03-31 0000886982 us-gaap:USStatesAndPoliticalSubdivisionsMember 2020-03-31 0000886982 us-gaap:OtherDebtSecuritiesMember 2020-03-31 0000886982 us-gaap:EquitySecuritiesMember 2020-03-31 0000886982 gs:SecuritiesBackedByResidentialRealEstateMember 2020-03-31 0000886982 us-gaap:CorporateDebtSecuritiesMember 2020-03-31 0000886982 currency:USD us-gaap:UnsecuredDebtMember srt:MinimumMember 2020-03-31 0000886982 currency:USD us-gaap:UnsecuredDebtMember srt:MaximumMember 2020-03-31 0000886982 currency:USD us-gaap:UnsecuredDebtMember srt:WeightedAverageMember 2020-03-31 0000886982 gs:NonUSDollarMember us-gaap:UnsecuredDebtMember srt:MinimumMember 2020-03-31 0000886982 gs:NonUSDollarMember us-gaap:UnsecuredDebtMember srt:MaximumMember 2020-03-31 0000886982 gs:NonUSDollarMember us-gaap:UnsecuredDebtMember srt:WeightedAverageMember 2020-03-31 0000886982 gs:NonInvestmentGradeCommercialLendingMember 2020-03-31 0000886982 gs:WarehouseFinancingMember 2020-03-31 0000886982 us-gaap:CreditCardMember 2020-03-31 0000886982 gs:NonInvestmentGradeCommercialLendingMember gs:MaturitiesRemainderOfYearOneMember 2020-03-31 0000886982 gs:MaturitiesYearTwoAndYearThreeMember gs:NonInvestmentGradeCommercialLendingMember 2020-03-31 0000886982 gs:MaturitiesYearThreeAndYearFourMember gs:NonInvestmentGradeCommercialLendingMember 2020-03-31 0000886982 gs:MaturitiesYearFiveAndThereafterMember gs:NonInvestmentGradeCommercialLendingMember 2020-03-31 0000886982 gs:WarehouseFinancingMember gs:MaturitiesRemainderOfYearOneMember 2020-03-31 0000886982 gs:MaturitiesYearTwoAndYearThreeMember gs:WarehouseFinancingMember 2020-03-31 0000886982 gs:MaturitiesYearThreeAndYearFourMember gs:WarehouseFinancingMember 2020-03-31 0000886982 gs:MaturitiesYearFiveAndThereafterMember gs:WarehouseFinancingMember 2020-03-31 0000886982 us-gaap:CreditCardMember gs:MaturitiesRemainderOfYearOneMember 2020-03-31 0000886982 us-gaap:CreditCardMember gs:MaturitiesYearTwoAndYearThreeMember 2020-03-31 0000886982 us-gaap:CreditCardMember gs:MaturitiesYearThreeAndYearFourMember 2020-03-31 0000886982 us-gaap:CreditCardMember gs:MaturitiesYearFiveAndThereafterMember 2020-03-31 0000886982 gs:MaturitiesRemainderOfYearOneMember 2020-03-31 0000886982 gs:MaturitiesYearTwoAndYearThreeMember 2020-03-31 0000886982 gs:MaturitiesYearThreeAndYearFourMember 2020-03-31 0000886982 gs:MaturitiesYearFiveAndThereafterMember 2020-03-31 0000886982 gs:InvestmentGradeCommercialLendingMember 2020-03-31 0000886982 gs:InvestmentGradeCommercialLendingMember gs:MaturitiesRemainderOfYearOneMember 2020-03-31 0000886982 gs:InvestmentGradeCommercialLendingMember gs:MaturitiesYearTwoAndYearThreeMember 2020-03-31 0000886982 gs:InvestmentGradeCommercialLendingMember gs:MaturitiesYearThreeAndYearFourMember 2020-03-31 0000886982 gs:InvestmentGradeCommercialLendingMember gs:MaturitiesYearFiveAndThereafterMember 2020-03-31 0000886982 gs:DerivativeGuaranteeMember gs:MaturitiesRemainderOfYearOneMember 2020-03-31 0000886982 gs:SecuritiesLendingIndemnificationMember gs:MaturitiesRemainderOfYearOneMember 2020-03-31 0000886982 us-gaap:FinancialGuaranteeMember gs:MaturitiesRemainderOfYearOneMember 2020-03-31 0000886982 gs:SecuritiesLendingIndemnificationMember 2020-03-31 0000886982 gs:DerivativeGuaranteeMember gs:MaturitiesYearTwoAndYearThreeMember 2020-03-31 0000886982 gs:SecuritiesLendingIndemnificationMember gs:MaturitiesYearTwoAndYearThreeMember 2020-03-31 0000886982 us-gaap:FinancialGuaranteeMember gs:MaturitiesYearTwoAndYearThreeMember 2020-03-31 0000886982 gs:DerivativeGuaranteeMember gs:MaturitiesYearFourAndYearFiveMember 2020-03-31 0000886982 gs:SecuritiesLendingIndemnificationMember gs:MaturitiesYearFourAndYearFiveMember 2020-03-31 0000886982 us-gaap:FinancialGuaranteeMember gs:MaturitiesYearFourAndYearFiveMember 2020-03-31 0000886982 gs:DerivativeGuaranteeMember gs:MaturitiesYearSixAndThereafterMember 2020-03-31 0000886982 gs:SecuritiesLendingIndemnificationMember gs:MaturitiesYearSixAndThereafterMember 2020-03-31 0000886982 us-gaap:FinancialGuaranteeMember gs:MaturitiesYearSixAndThereafterMember 2020-03-31 0000886982 gs:FinancialAssetEqualToOrGreaterThan30DaysPastDueMember 2020-03-31 0000886982 us-gaap:MortgageBackedSecuritiesMember 2020-03-31 0000886982 gs:RealEstateCreditAndPowerRelatedAndOtherInvestingMember 2020-03-31 0000886982 gs:InvestmentInFundMember 2020-03-31 0000886982 gs:SeriesPPreferredStockMember 2020-03-31 0000886982 gs:SeriesSPreferredStockMember 2020-03-31 0000886982 us-gaap:SeriesAPreferredStockMember 2020-03-31 0000886982 us-gaap:SeriesCPreferredStockMember 2020-03-31 0000886982 us-gaap:SeriesDPreferredStockMember 2020-03-31 0000886982 us-gaap:SeriesEPreferredStockMember 2020-03-31 0000886982 us-gaap:SeriesFPreferredStockMember 2020-03-31 0000886982 gs:SeriesJPreferredStockMember 2020-03-31 0000886982 gs:SeriesKPreferredStockMember 2020-03-31 0000886982 gs:SeriesMPreferredStockMember 2020-03-31 0000886982 gs:SeriesNPreferredStockMember 2020-03-31 0000886982 gs:SeriesOPreferredStockMember 2020-03-31 0000886982 gs:SeriesQPreferredStockMember 2020-03-31 0000886982 gs:SeriesRPreferredStockMember 2020-03-31 0000886982 gs:CorporateDebtAndOtherAssetBackedSecuritiesMember gs:RetainedInterestsMaximumExposureToLossMember 2020-03-31 0000886982 gs:InvestmentInFundMember gs:CommitmentsAndGuaranteesMaximumExposureToLossMember 2020-03-31 0000886982 gs:RealEstateCreditAndPowerRelatedAndOtherInvestingMember gs:CommitmentsAndGuaranteesMaximumExposureToLossMember 2020-03-31 0000886982 us-gaap:MortgageBackedSecuritiesMember gs:RetainedInterestsMaximumExposureToLossMember 2020-03-31 0000886982 gs:RetainedInterestsMaximumExposureToLossMember 2020-03-31 0000886982 gs:PurchasedInterestsMaximumExposureToLossMember 2020-03-31 0000886982 gs:CommitmentsAndGuaranteesMaximumExposureToLossMember 2020-03-31 0000886982 gs:DerivativesMaximumExposureToLossMember 2020-03-31 0000886982 gs:DebtAndEquityMaximumExposureToLossMember 2020-03-31 0000886982 gs:PurchasedInterestsMaximumExposureToLossMember us-gaap:MortgageBackedSecuritiesMember 2020-03-31 0000886982 gs:CommitmentsAndGuaranteesMaximumExposureToLossMember us-gaap:MortgageBackedSecuritiesMember 2020-03-31 0000886982 gs:DerivativesMaximumExposureToLossMember us-gaap:MortgageBackedSecuritiesMember 2020-03-31 0000886982 gs:DerivativesMaximumExposureToLossMember gs:RealEstateCreditAndPowerRelatedAndOtherInvestingMember 2020-03-31 0000886982 gs:DebtAndEquityMaximumExposureToLossMember gs:RealEstateCreditAndPowerRelatedAndOtherInvestingMember 2020-03-31 0000886982 gs:PurchasedInterestsMaximumExposureToLossMember gs:CorporateDebtAndOtherAssetBackedSecuritiesMember 2020-03-31 0000886982 gs:CommitmentsAndGuaranteesMaximumExposureToLossMember gs:CorporateDebtAndOtherAssetBackedSecuritiesMember 2020-03-31 0000886982 gs:DerivativesMaximumExposureToLossMember gs:CorporateDebtAndOtherAssetBackedSecuritiesMember 2020-03-31 0000886982 gs:DebtAndEquityMaximumExposureToLossMember gs:CorporateDebtAndOtherAssetBackedSecuritiesMember 2020-03-31 0000886982 gs:DerivativesMaximumExposureToLossMember gs:InvestmentInFundMember 2020-03-31 0000886982 gs:DebtAndEquityMaximumExposureToLossMember gs:InvestmentInFundMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember gs:DerivativesByTenorTwoMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember gs:DerivativesByTenorTwoMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember gs:DerivativesByTenorTwoMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember gs:DerivativesByTenorTwoMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember gs:DerivativesByTenorThreeMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember gs:DerivativesByTenorThreeMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember gs:DerivativesByTenorThreeMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember gs:DerivativesByTenorThreeMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember 2020-03-31 0000886982 gs:DerivativesByTenorTwoMember 2020-03-31 0000886982 gs:DerivativesByTenorThreeMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember gs:DerivativesByTenorOneMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember gs:DerivativesByTenorOneMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember gs:DerivativesByTenorOneMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember gs:DerivativesByTenorOneMember 2020-03-31 0000886982 gs:DerivativesByTenorOneMember 2020-03-31 0000886982 gs:DerivativesMember gs:StandardizedCapitalRulesMember 2020-03-31 0000886982 gs:DerivativesMember gs:AdvancedCapitalMember 2020-03-31 0000886982 gs:CommitmentsGuaranteesAndLoansMember gs:StandardizedCapitalRulesMember 2020-03-31 0000886982 gs:CommitmentsGuaranteesAndLoansMember gs:AdvancedCapitalMember 2020-03-31 0000886982 gs:SecuritiesFinancingTransactionsMember gs:StandardizedCapitalRulesMember 2020-03-31 0000886982 gs:SecuritiesFinancingTransactionsMember gs:AdvancedCapitalMember 2020-03-31 0000886982 gs:EquityInvestmentsMember gs:StandardizedCapitalRulesMember 2020-03-31 0000886982 gs:EquityInvestmentsMember gs:AdvancedCapitalMember 2020-03-31 0000886982 gs:OthersMember gs:StandardizedCapitalRulesMember 2020-03-31 0000886982 gs:OthersMember gs:AdvancedCapitalMember 2020-03-31 0000886982 us-gaap:ExchangeClearedMember us-gaap:NondesignatedMember us-gaap:InterestRateContractMember 2020-03-31 0000886982 gs:BilateralOtcMember us-gaap:NondesignatedMember us-gaap:InterestRateContractMember 2020-03-31 0000886982 us-gaap:NondesignatedMember us-gaap:InterestRateContractMember 2020-03-31 0000886982 us-gaap:ExchangeClearedMember us-gaap:NondesignatedMember us-gaap:CreditRiskContractMember 2020-03-31 0000886982 gs:BilateralOtcMember us-gaap:NondesignatedMember us-gaap:CreditRiskContractMember 2020-03-31 0000886982 us-gaap:NondesignatedMember us-gaap:CreditRiskContractMember 2020-03-31 0000886982 us-gaap:ExchangeTradedMember us-gaap:NondesignatedMember us-gaap:ForeignExchangeContractMember 2020-03-31 0000886982 us-gaap:ExchangeClearedMember us-gaap:NondesignatedMember us-gaap:ForeignExchangeContractMember 2020-03-31 0000886982 gs:BilateralOtcMember us-gaap:NondesignatedMember us-gaap:ForeignExchangeContractMember 2020-03-31 0000886982 us-gaap:NondesignatedMember us-gaap:ForeignExchangeContractMember 2020-03-31 0000886982 us-gaap:ExchangeTradedMember us-gaap:NondesignatedMember us-gaap:CommodityContractMember 2020-03-31 0000886982 us-gaap:ExchangeClearedMember us-gaap:NondesignatedMember us-gaap:CommodityContractMember 2020-03-31 0000886982 gs:BilateralOtcMember us-gaap:NondesignatedMember us-gaap:CommodityContractMember 2020-03-31 0000886982 us-gaap:NondesignatedMember us-gaap:CommodityContractMember 2020-03-31 0000886982 us-gaap:ExchangeTradedMember us-gaap:NondesignatedMember us-gaap:EquityContractMember 2020-03-31 0000886982 us-gaap:InterestRateContractMember us-gaap:NondesignatedMember us-gaap:ExchangeTradedMember 2020-03-31 0000886982 gs:BilateralOtcMember us-gaap:NondesignatedMember us-gaap:EquityContractMember 2020-03-31 0000886982 us-gaap:NondesignatedMember us-gaap:EquityContractMember 2020-03-31 0000886982 us-gaap:ExchangeClearedMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateContractMember 2020-03-31 0000886982 gs:BilateralOtcMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateContractMember 2020-03-31 0000886982 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateContractMember 2020-03-31 0000886982 us-gaap:ExchangeClearedMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ForeignExchangeContractMember 2020-03-31 0000886982 us-gaap:NondesignatedMember 2020-03-31 0000886982 gs:BilateralOtcMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ForeignExchangeContractMember 2020-03-31 0000886982 us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000886982 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ForeignExchangeContractMember 2020-03-31 0000886982 us-gaap:WrittenLoanCommitmentFairValueOptionMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember gs:OffsettingPurchasedCreditDerivativesMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember gs:OffsettingPurchasedCreditDerivativesMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember gs:OffsettingPurchasedCreditDerivativesMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember gs:OffsettingPurchasedCreditDerivativesMember 2020-03-31 0000886982 gs:OffsettingPurchasedCreditDerivativesMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember gs:OtherPurchasedCreditDerivativesMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember gs:OtherPurchasedCreditDerivativesMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember gs:OtherPurchasedCreditDerivativesMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember gs:OtherPurchasedCreditDerivativesMember 2020-03-31 0000886982 gs:OtherPurchasedCreditDerivativesMember 2020-03-31 0000886982 us-gaap:OverTheCounterMember gs:CounterpartyAndCashCollateralNettingAdjustmentMember 2020-03-31 0000886982 gs:DerivativesByTenorOneMember us-gaap:OverTheCounterMember us-gaap:InterestRateContractMember 2020-03-31 0000886982 gs:DerivativesByTenorTwoMember us-gaap:OverTheCounterMember us-gaap:InterestRateContractMember 2020-03-31 0000886982 gs:DerivativesByTenorThreeMember us-gaap:OverTheCounterMember us-gaap:InterestRateContractMember 2020-03-31 0000886982 us-gaap:OverTheCounterMember us-gaap:InterestRateContractMember 2020-03-31 0000886982 gs:DerivativesByTenorOneMember us-gaap:OverTheCounterMember 2020-03-31 0000886982 gs:DerivativesByTenorTwoMember us-gaap:OverTheCounterMember 2020-03-31 0000886982 gs:DerivativesByTenorThreeMember us-gaap:OverTheCounterMember 2020-03-31 0000886982 us-gaap:OverTheCounterMember 2020-03-31 0000886982 us-gaap:OverTheCounterMember gs:CrossMaturityNettingAdjustmentMember 2020-03-31 0000886982 us-gaap:CreditRiskContractMember us-gaap:OverTheCounterMember gs:DerivativesByTenorOneMember 2020-03-31 0000886982 us-gaap:CreditRiskContractMember us-gaap:OverTheCounterMember gs:DerivativesByTenorTwoMember 2020-03-31 0000886982 us-gaap:CreditRiskContractMember us-gaap:OverTheCounterMember gs:DerivativesByTenorThreeMember 2020-03-31 0000886982 us-gaap:CreditRiskContractMember us-gaap:OverTheCounterMember 2020-03-31 0000886982 us-gaap:ForeignExchangeContractMember us-gaap:OverTheCounterMember gs:DerivativesByTenorOneMember 2020-03-31 0000886982 us-gaap:ForeignExchangeContractMember us-gaap:OverTheCounterMember gs:DerivativesByTenorTwoMember 2020-03-31 0000886982 us-gaap:ForeignExchangeContractMember us-gaap:OverTheCounterMember gs:DerivativesByTenorThreeMember 2020-03-31 0000886982 us-gaap:ForeignExchangeContractMember us-gaap:OverTheCounterMember 2020-03-31 0000886982 us-gaap:CommodityContractMember us-gaap:OverTheCounterMember gs:DerivativesByTenorOneMember 2020-03-31 0000886982 us-gaap:CommodityContractMember us-gaap:OverTheCounterMember gs:DerivativesByTenorTwoMember 2020-03-31 0000886982 us-gaap:CommodityContractMember us-gaap:OverTheCounterMember gs:DerivativesByTenorThreeMember 2020-03-31 0000886982 us-gaap:CommodityContractMember us-gaap:OverTheCounterMember 2020-03-31 0000886982 us-gaap:EquityContractMember us-gaap:OverTheCounterMember gs:DerivativesByTenorOneMember 2020-03-31 0000886982 us-gaap:EquityContractMember us-gaap:OverTheCounterMember gs:DerivativesByTenorTwoMember 2020-03-31 0000886982 us-gaap:EquityContractMember us-gaap:OverTheCounterMember gs:DerivativesByTenorThreeMember 2020-03-31 0000886982 us-gaap:EquityContractMember us-gaap:OverTheCounterMember 2020-03-31 0000886982 us-gaap:OverTheCounterMember gs:DerivativesByTenorOneMember gs:CounterpartyNettingAdjustmentWithinTenorsMember 2020-03-31 0000886982 us-gaap:OverTheCounterMember gs:DerivativesByTenorTwoMember gs:CounterpartyNettingAdjustmentWithinTenorsMember 2020-03-31 0000886982 us-gaap:OverTheCounterMember gs:DerivativesByTenorThreeMember gs:CounterpartyNettingAdjustmentWithinTenorsMember 2020-03-31 0000886982 us-gaap:OverTheCounterMember gs:CounterpartyNettingAdjustmentWithinTenorsMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member us-gaap:CreditRiskContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:CreditRiskContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignExchangeContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignExchangeContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:ForeignExchangeContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member us-gaap:CommodityContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member us-gaap:CommodityContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:CommodityContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel1Member us-gaap:EquityContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member us-gaap:EquityContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member us-gaap:EquityContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:EquityContractMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel1Member gs:GrossFairValueOfDerivativeMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member gs:GrossFairValueOfDerivativeMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member gs:GrossFairValueOfDerivativeMember 2020-03-31 0000886982 us-gaap:DerivativeMember gs:GrossFairValueOfDerivativeMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member gs:CounterpartyNettingAdjustmentWithinLevelsMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member gs:CounterpartyNettingAdjustmentWithinLevelsMember 2020-03-31 0000886982 us-gaap:DerivativeMember gs:CounterpartyNettingAdjustmentWithinLevelsMember 2020-03-31 0000886982 us-gaap:DerivativeMember gs:CrossLevelCounterpartyNettingAdjustmentMember 2020-03-31 0000886982 us-gaap:InterestRateContractMember us-gaap:DerivativeMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 us-gaap:InterestRateContractMember us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:InterestRateContractMember us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:InterestRateContractMember us-gaap:DerivativeMember 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:DerivativeMember 2020-03-31 0000886982 gs:RegulatoryVarMember gs:StandardizedCapitalRulesMember 2020-03-31 0000886982 gs:RegulatoryVarMember gs:AdvancedCapitalMember 2020-03-31 0000886982 gs:StressedVarMember gs:StandardizedCapitalRulesMember 2020-03-31 0000886982 gs:StressedVarMember gs:AdvancedCapitalMember 2020-03-31 0000886982 gs:IncrementalRiskMember gs:StandardizedCapitalRulesMember 2020-03-31 0000886982 gs:IncrementalRiskMember gs:AdvancedCapitalMember 2020-03-31 0000886982 gs:ComprehensiveRiskMember gs:StandardizedCapitalRulesMember 2020-03-31 0000886982 gs:ComprehensiveRiskMember gs:AdvancedCapitalMember 2020-03-31 0000886982 gs:SpecificRiskMember gs:StandardizedCapitalRulesMember 2020-03-31 0000886982 gs:SpecificRiskMember gs:AdvancedCapitalMember 2020-03-31 0000886982 gs:CashCollateralNettingAdjustmentMember us-gaap:OverTheCounterMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsOneMember gs:WrittenCreditDerivativeMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsTwoMember gs:WrittenCreditDerivativeMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsThreeMember gs:WrittenCreditDerivativeMember 2020-03-31 0000886982 gs:CreditSpreadOnUnderlyingBasisPointsFourMember gs:WrittenCreditDerivativeMember 2020-03-31 0000886982 gs:WrittenCreditDerivativeMember 2020-03-31 0000886982 us-gaap:OtherDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:OtherDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:OtherDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember 2020-03-31 0000886982 us-gaap:EquitySecuritiesMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 us-gaap:EquitySecuritiesMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:EquitySecuritiesMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:EquitySecuritiesMember gs:TradingCashInstrumentsAssetsMember 2020-03-31 0000886982 us-gaap:CommoditiesInvestmentMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:CommoditiesInvestmentMember gs:TradingCashInstrumentsAssetsMember 2020-03-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember 2020-03-31 0000886982 gs:LoansAndSecuritiesBackedByCommercialRealEstateMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 gs:LoansAndSecuritiesBackedByCommercialRealEstateMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:LoansAndSecuritiesBackedByCommercialRealEstateMember gs:TradingCashInstrumentsAssetsMember 2020-03-31 0000886982 gs:LoansAndSecuritiesBackedByResidentialRealEstateMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 gs:LoansAndSecuritiesBackedByResidentialRealEstateMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:LoansAndSecuritiesBackedByResidentialRealEstateMember gs:TradingCashInstrumentsAssetsMember 2020-03-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember gs:TradingCashInstrumentsAssetsMember 2020-03-31 0000886982 us-gaap:USStatesAndPoliticalSubdivisionsMember gs:TradingCashInstrumentsAssetsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:USStatesAndPoliticalSubdivisionsMember gs:TradingCashInstrumentsAssetsMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel1Member gs:TradingCashInstrumentsAssetsMember us-gaap:OtherDebtSecuritiesMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel1Member gs:TradingCashInstrumentsAssetsMember us-gaap:USTreasuryAndGovernmentMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:TradingCashInstrumentsAssetsMember us-gaap:USTreasuryAndGovernmentMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:TradingCashInstrumentsAssetsMember us-gaap:USTreasuryAndGovernmentMember 2020-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember us-gaap:USTreasuryAndGovernmentMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel1Member gs:TradingCashInstrumentsAssetsMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:TradingCashInstrumentsAssetsMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:TradingCashInstrumentsAssetsMember 2020-03-31 0000886982 gs:UnsecuredLongTermBorrowingsAtFairValueMember 2020-03-31 0000886982 us-gaap:ExchangeClearedMember gs:CounterpartyNettingMember 2020-03-31 0000886982 gs:BilateralOtcMember gs:CounterpartyNettingMember 2020-03-31 0000886982 gs:CounterpartyNettingMember 2020-03-31 0000886982 us-gaap:ExchangeClearedMember gs:CashCollateralNettingAdjustmentMember 2020-03-31 0000886982 gs:CashCollateralNettingAdjustmentMember 2020-03-31 0000886982 gs:BilateralOtcMember gs:CashCollateralNettingAdjustmentMember 2020-03-31 0000886982 us-gaap:ExchangeTradedMember gs:CounterpartyNettingMember 2020-03-31 0000886982 us-gaap:DerivativeMember gs:CashCollateralNettingAdjustmentMember 2020-03-31 0000886982 us-gaap:ExchangeClearedMember 2020-03-31 0000886982 us-gaap:ExchangeTradedMember 2020-03-31 0000886982 gs:BilateralOtcMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel1Member gs:CashInstrumentsLiabilitiesMember us-gaap:USTreasuryAndGovernmentMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember us-gaap:USTreasuryAndGovernmentMember 2020-03-31 0000886982 gs:CashInstrumentsLiabilitiesMember us-gaap:USTreasuryAndGovernmentMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel1Member gs:CashInstrumentsLiabilitiesMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CashInstrumentsLiabilitiesMember 2020-03-31 0000886982 gs:CashInstrumentsLiabilitiesMember 2020-03-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember gs:CashInstrumentsLiabilitiesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2020-03-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember gs:CashInstrumentsLiabilitiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:ForeignGovernmentDebtSecuritiesMember gs:CashInstrumentsLiabilitiesMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember 2020-03-31 0000886982 gs:CashInstrumentsLiabilitiesMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:CashInstrumentsLiabilitiesMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember gs:LoansAndSecuritiesBackedByResidentialRealEstateMember 2020-03-31 0000886982 gs:CashInstrumentsLiabilitiesMember gs:LoansAndSecuritiesBackedByResidentialRealEstateMember 2020-03-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember gs:CashInstrumentsLiabilitiesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember gs:CorporateLoansAndDebtSecuritiesMember 2020-03-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember gs:CashInstrumentsLiabilitiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember gs:CashInstrumentsLiabilitiesMember 2020-03-31 0000886982 gs:CashInstrumentsLiabilitiesMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 gs:CashInstrumentsLiabilitiesMember us-gaap:OtherDebtSecuritiesMember 2020-03-31 0000886982 us-gaap:EquitySecuritiesMember gs:CashInstrumentsLiabilitiesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember us-gaap:EquitySecuritiesMember 2020-03-31 0000886982 us-gaap:EquitySecuritiesMember gs:CashInstrumentsLiabilitiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:EquitySecuritiesMember gs:CashInstrumentsLiabilitiesMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CashInstrumentsLiabilitiesMember us-gaap:CommoditiesInvestmentMember 2020-03-31 0000886982 gs:CashInstrumentsLiabilitiesMember us-gaap:CommoditiesInvestmentMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:MinimumMember us-gaap:MeasurementInputExpectedDividendRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:MaximumMember us-gaap:MeasurementInputExpectedDividendRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:MinimumMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:MaximumMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:MinimumMember us-gaap:MeasurementInputExpectedDividendRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:MaximumMember us-gaap:MeasurementInputExpectedDividendRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:MinimumMember us-gaap:MeasurementInputLossSeverityMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:MaximumMember us-gaap:MeasurementInputLossSeverityMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:MinimumMember us-gaap:MeasurementInputExpectedDividendRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:MaximumMember us-gaap:MeasurementInputExpectedDividendRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:MinimumMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:MaximumMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member srt:WeightedAverageMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember us-gaap:MeasurementInputExpectedTermMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:WeightedAverageMember us-gaap:MeasurementInputExpectedTermMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:WeightedAverageMember us-gaap:MeasurementInputExpectedTermMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member srt:WeightedAverageMember us-gaap:MeasurementInputExpectedDividendRateMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByCommercialRealEstateMember srt:WeightedAverageMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:WeightedAverageMember us-gaap:MeasurementInputExpectedDividendRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:LoansAndSecuritiesBackedByResidentialRealEstateMember srt:WeightedAverageMember us-gaap:MeasurementInputLossSeverityMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:WeightedAverageMember us-gaap:MeasurementInputExpectedDividendRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansAndDebtSecuritiesMember srt:WeightedAverageMember us-gaap:MeasurementInputConstantPrepaymentRateMember 2020-03-31 0000886982 gs:LoansAndSecuritiesBackedByCommercialRealEstateMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:LoansAndSecuritiesBackedByResidentialRealEstateMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:CorporateLoansAndDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:MalaysiaDevelopmentBerhadMember gs:OfferingsOfDebtSecuritiesMember 2020-03-31 0000886982 gs:MortgageRelatedMattersMember 2020-03-31 0000886982 gs:AdeptusHealthSecuritiesLitigationMember gs:June2014InitialPublicOfferingMember 2020-03-31 0000886982 gs:AdeptusHealthSecuritiesLitigationMember gs:May2015SecondaryEquityOfferingMember 2020-03-31 0000886982 gs:AdeptusHealthSecuritiesLitigationMember gs:July2015SecondaryEquityOfferingMember 2020-03-31 0000886982 gs:AdeptusHealthSecuritiesLitigationMember gs:June2016SecondaryEquityOfferingMember 2020-03-31 0000886982 gs:SunEdisonSecuritiesLitigationMember gs:ConvertiblePreferredStockOfferingMember 2020-03-31 0000886982 gs:ValeantPharmaceuticalsInternationalSecuritiesLitigationMember gs:June2013PublicOfferingMember 2020-03-31 0000886982 gs:SnapIncMember gs:March2017InitialPublicOfferingMember 2020-03-31 0000886982 gs:SeaLimitedMember gs:OctoberTwoThousandAndSeventeenInitialPublicOfferingMember 2020-03-31 0000886982 gs:AlticeUsaIncMember gs:JuneTwoThousandAndSeventeenInitialPublicOfferingMember 2020-03-31 0000886982 gs:VenatorMaterialsPlcLitigationMember gs:August2017InitialPublicOfferingMember 2020-03-31 0000886982 gs:VenatorMaterialsPlcLitigationMember gs:December2017SecondaryEquityOfferingMember 2020-03-31 0000886982 gs:UberTechnologiesIncMember 2020-03-31 0000886982 gs:OctoberTwoThousandSixteenInitialPublicOfferingMember gs:CampingWorldHoldingsIncLitigationMember 2020-03-31 0000886982 gs:AlnylamPharmaceuticalsIncMember 2020-03-31 0000886982 gs:CampingWorldHoldingsIncLitigationMember gs:MayTwoThousandSeventeenOfferingMember 2020-03-31 0000886982 gs:CampingWorldHoldingsIncLitigationMember gs:OctoberTwoThousandSeventeenOfferingMember 2020-03-31 0000886982 gs:December2019InitialPublicOfferingMember gs:XpIncLitigationMember 2020-03-31 0000886982 gs:SeriesLPreferredStockMember 2020-03-31 0000886982 us-gaap:InterestRateContractMember 2020-03-31 0000886982 us-gaap:CreditRiskContractMember 2020-03-31 0000886982 us-gaap:ForeignExchangeContractMember 2020-03-31 0000886982 us-gaap:CommodityContractMember 2020-03-31 0000886982 us-gaap:EquityContractMember 2020-03-31 0000886982 gs:ValeantPharmaceuticalsInternationalSecuritiesLitigationMember gs:June2013SeniorNotesOfferingMember 2020-03-31 0000886982 gs:ValeantPharmaceuticalsInternationalSecuritiesLitigationMember gs:November2013SeniorNotesOfferingMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:InterestRateContractMember srt:MinimumMember gs:MeasurementInputCorrelationMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:InterestRateContractMember srt:MaximumMember gs:MeasurementInputCorrelationMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:InterestRateContractMember gs:MeasurementInputMedianCorrelationMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignExchangeContractMember srt:MinimumMember gs:MeasurementInputCorrelationMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignExchangeContractMember srt:MaximumMember gs:MeasurementInputCorrelationMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignExchangeContractMember gs:MeasurementInputMedianCorrelationMember 2020-03-31 0000886982 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember gs:MeasurementInputCorrelationMember 2020-03-31 0000886982 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember gs:MeasurementInputCorrelationMember 2020-03-31 0000886982 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageCorrelationMember 2020-03-31 0000886982 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputMedianCorrelationMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:EquityContractMember srt:MinimumMember us-gaap:MeasurementInputPriceVolatilityMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:EquityContractMember srt:MaximumMember us-gaap:MeasurementInputPriceVolatilityMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:EquityContractMember gs:MeasurementInputMedianVolatilityMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember srt:MinimumMember gs:MeasurementInputRecoveryRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember srt:MaximumMember gs:MeasurementInputRecoveryRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember gs:MeasurementInputMedianRecoveryRateMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CommodityContractMember srt:MinimumMember us-gaap:MeasurementInputPriceVolatilityMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CommodityContractMember srt:MaximumMember us-gaap:MeasurementInputPriceVolatilityMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CommodityContractMember gs:MeasurementInputMedianVolatilityMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CommodityContractMember srt:OilReservesMember srt:MaximumMember gs:MeasurementInputSpreadMember 2020-03-31 0000886982 us-gaap:CommodityContractMember srt:OilReservesMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageSpreadMember 2020-03-31 0000886982 gs:MeasurementInputMedianSpreadMember us-gaap:FairValueInputsLevel3Member srt:OilReservesMember us-gaap:CommodityContractMember 2020-03-31 0000886982 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember us-gaap:MeasurementInputPriceVolatilityMember 2020-03-31 0000886982 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember us-gaap:MeasurementInputPriceVolatilityMember 2020-03-31 0000886982 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageVolatilityMember 2020-03-31 0000886982 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputMedianVolatilityMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember srt:MinimumMember us-gaap:MeasurementInputCreditSpreadMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember srt:MaximumMember us-gaap:MeasurementInputCreditSpreadMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember gs:MeasurementInputAverageCreditSpreadMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember gs:MeasurementInputMedianCreditSpreadMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember srt:MinimumMember gs:MeasurementInputUpfrontCreditPointsMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember srt:MaximumMember gs:MeasurementInputUpfrontCreditPointsMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember gs:MeasurementInputAverageUpfrontCreditPointsMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CreditRiskContractMember gs:MeasurementInputMedianUpfrontCreditPointsMember 2020-03-31 0000886982 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputCorrelationMember 2020-03-31 0000886982 us-gaap:CreditRiskContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageRecoveryRateMember 2020-03-31 0000886982 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageCorrelationMember 2020-03-31 0000886982 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageVolatilityMember 2020-03-31 0000886982 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputAverageVolatilityMember 2020-03-31 0000886982 srt:MinimumMember us-gaap:CommodityContractMember srt:OilReservesMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputSpreadMember 2020-03-31 0000886982 srt:MinimumMember us-gaap:CommodityContractMember srt:NaturalGasReservesMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputSpreadMember 2020-03-31 0000886982 srt:MaximumMember us-gaap:CommodityContractMember srt:NaturalGasReservesMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputSpreadMember 2020-03-31 0000886982 gs:MeasurementInputAverageSpreadMember us-gaap:FairValueInputsLevel3Member srt:NaturalGasReservesMember us-gaap:CommodityContractMember 2020-03-31 0000886982 us-gaap:CommodityContractMember srt:NaturalGasReservesMember us-gaap:FairValueInputsLevel3Member gs:MeasurementInputMedianSpreadMember 2020-03-31 0000886982 gs:ValeantPharmaceuticalsInternationalSecuritiesLitigationMember gs:June2013AndNovember2013SeniorNotesOfferingsMember us-gaap:NonUsMember 2020-03-31 0000886982 srt:MinimumMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputExpectedDividendRateMember 2020-03-31 0000886982 srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputExpectedDividendRateMember gs:OtherSecuredFinancingsAtFairValueMember 2020-03-31 0000886982 srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputExpectedDividendRateMember gs:OtherSecuredFinancingsAtFairValueMember 2020-03-31 0000886982 srt:MinimumMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputExpectedTermMember gs:OtherSecuredFinancingsAtFairValueMember 2020-03-31 0000886982 srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputExpectedTermMember gs:OtherSecuredFinancingsAtFairValueMember 2020-03-31 0000886982 srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputExpectedTermMember gs:OtherSecuredFinancingsAtFairValueMember 2020-03-31 0000886982 gs:ConsolidatedVariableInterestEntityCarryingAmountMember 2020-03-31 0000886982 gs:PrincipalProtectedNotesMember 2020-03-31 0000886982 gs:RealEstateCreditRelatedAndOtherInvestingMember 2020-03-31 0000886982 gs:TradingCashInstrumentsFairValueDisclosureMember 2020-03-31 0000886982 gs:PublicEquityMember 2020-03-31 0000886982 gs:PrivateEquityMember 2020-03-31 0000886982 gs:PublicAndPrivateEquityMember 2020-03-31 0000886982 us-gaap:CorporateMember 2020-03-31 0000886982 us-gaap:RealEstateMember 2020-03-31 0000886982 gs:CorporateAndRealEstateMember 2020-03-31 0000886982 srt:AmericasMember 2020-03-31 0000886982 gs:EuropeMiddleEastAndAfricaMember 2020-03-31 0000886982 srt:AsiaMember 2020-03-31 0000886982 gs:AmericasEuropeAndAsiaMember 2020-03-31 0000886982 gs:SecuritiesBackedByRealEstateMember 2020-03-31 0000886982 gs:CashInstrumentsAssetsMember gs:CreditFundsMember 2020-03-31 0000886982 us-gaap:PrivateEquityFundsMember gs:CashInstrumentsAssetsMember 2020-03-31 0000886982 gs:CashInstrumentsAssetsMember 2020-03-31 0000886982 gs:CashInstrumentsAssetsMember us-gaap:HedgeFundsMember 2020-03-31 0000886982 gs:CashInstrumentsAssetsMember us-gaap:RealEstateFundsMember 2020-03-31 0000886982 gs:CashInstrumentsLiabilitiesMember us-gaap:RealEstateFundsMember 2020-03-31 0000886982 gs:CashInstrumentsLiabilitiesMember 2020-03-31 0000886982 gs:CashInstrumentsLiabilitiesMember us-gaap:PrivateEquityFundsMember 2020-03-31 0000886982 gs:CashInstrumentsLiabilitiesMember gs:CreditFundsMember 2020-03-31 0000886982 gs:AmortizedCostMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember gs:AmortizedCostMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:AmortizedCostMember gs:UnratedMember gs:LoansReceivableAndRelatedLendingCommitmentsMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:AmortizedCostMember gs:LoansReceivableAndRelatedLendingCommitmentsMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:CorporateLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember 2020-03-31 0000886982 gs:CorporateLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember 2020-03-31 0000886982 gs:CorporateLoansMember gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2020-03-31 0000886982 gs:CorporateLoansMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember us-gaap:InternalInvestmentGradeMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember us-gaap:InternalNoninvestmentGradeMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:UnratedMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember us-gaap:InternalInvestmentGradeMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember us-gaap:InternalNoninvestmentGradeMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember gs:UnratedMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember us-gaap:InternalInvestmentGradeMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember us-gaap:InternalNoninvestmentGradeMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember gs:UnratedMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:InstallmentLoansMember gs:UnratedMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:InstallmentLoansMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember gs:UnratedMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:OtherLoansMember us-gaap:InternalInvestmentGradeMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:OtherLoansMember us-gaap:InternalNoninvestmentGradeMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:OtherLoansMember gs:UnratedMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:OtherLoansMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember gs:HeldForSaleMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember gs:HeldForSaleMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember gs:HeldForSaleMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:HeldForSaleMember 2020-03-31 0000886982 gs:LessThanFiveYearsMember 2020-03-31 0000886982 gs:GreaterThanFiveYearsMember 2020-03-31 0000886982 gs:AmortizedCostMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 gs:AmortizedCostMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:HeldForSaleMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 gs:HeldForSaleMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:FairValueInputsLevel2Member gs:CorporateLoansMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CorporateLoansMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:OtherLoansMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 gs:OtherLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:InvestmentsMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:InvestmentsMember gs:CorporateLoansAndDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 us-gaap:InvestmentsMember gs:CorporateLoansAndDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:InvestmentsMember gs:CorporateLoansAndDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:InvestmentsMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:InvestmentsMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasurySecuritiesMember us-gaap:InvestmentsMember 2020-03-31 0000886982 us-gaap:USTreasurySecuritiesMember us-gaap:InvestmentsMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2020-03-31 0000886982 us-gaap:InvestmentsMember gs:CorporateLoansAndDebtSecuritiesMember 2020-03-31 0000886982 us-gaap:InvestmentsMember gs:SecuritiesBackedByRealEstateMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:OtherDebtSecuritiesMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:EquitySecuritiesMember 2020-03-31 0000886982 us-gaap:InvestmentsMember gs:MoneyMarketInstrumentsMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000886982 us-gaap:InvestmentsMember gs:MoneyMarketInstrumentsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000886982 us-gaap:InvestmentsMember gs:MoneyMarketInstrumentsMember 2020-03-31 0000886982 gs:InstallmentMember exch:FICO 2020-03-31 0000886982 exch:FICO 2020-03-31 0000886982 exch:FICO us-gaap:CreditCardReceivablesMember 2020-03-31 0000886982 gs:InstallmentLoansMember 2020-03-31 0000886982 gs:CorporateLoansMember 2020-03-31 0000886982 gs:WealthManagementAndOtherMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedDividendRateMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedDividendRateMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MinimumMember gs:MeasurementInputRecoveryRateMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MaximumMember gs:MeasurementInputRecoveryRateMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:WeightedAverageMember us-gaap:MeasurementInputExpectedTermMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MinimumMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputExpectedDividendRateMember 2020-03-31 0000886982 srt:MaximumMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputExpectedDividendRateMember 2020-03-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedDividendRateMember gs:WealthManagementAndOtherMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedDividendRateMember gs:WealthManagementAndOtherMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:WeightedAverageMember us-gaap:MeasurementInputExpectedTermMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MinimumMember gs:MeasurementInputRecoveryRateMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MaximumMember gs:MeasurementInputRecoveryRateMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedDividendRateMember gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedDividendRateMember gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:WeightedAverageMember us-gaap:MeasurementInputExpectedTermMember gs:ResidentialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember gs:WealthManagementAndOtherMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember gs:WealthManagementAndOtherMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:WeightedAverageMember us-gaap:MeasurementInputExpectedTermMember gs:WealthManagementAndOtherMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 gs:CorporateLoansMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:FairValueInputsLevel3Member srt:WeightedAverageMember 2020-03-31 0000886982 srt:WeightedAverageMember gs:MeasurementInputRecoveryRateMember gs:CorporateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 srt:WeightedAverageMember us-gaap:MeasurementInputExpectedDividendRateMember gs:CommercialRealEstateLoansMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:CommercialRealEstateLoansMember gs:MeasurementInputRecoveryRateMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:ResidentialRealEstateLoansMember us-gaap:MeasurementInputExpectedDividendRateMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:WealthManagementAndOtherMember us-gaap:MeasurementInputExpectedDividendRateMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:InvestmentsMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:EquitySecuritiesMember us-gaap:MeasurementInputDiscountRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:EquitySecuritiesMember us-gaap:MeasurementInputCapRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedTermMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedTermMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputRevenueMultipleMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputRevenueMultipleMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember us-gaap:MeasurementInputExpectedTermMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:SecuritiesBackedByRealEstateMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:SecuritiesBackedByRealEstateMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:SecuritiesBackedByRealEstateMember us-gaap:MeasurementInputExpectedTermMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:OtherDebtSecuritiesMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:OtherDebtSecuritiesMember us-gaap:MeasurementInputExpectedTermMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputConstantPrepaymentRateMember us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputConstantPrepaymentRateMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputConstantPrepaymentRateMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedTermMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedTermMember gs:SecuritiesBackedByRealEstateMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedTermMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputExpectedTermMember us-gaap:OtherDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputRevenueMultipleMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputRevenueMultipleMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputCapRateMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MinimumMember 2020-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:MeasurementInputCapRateMember us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member srt:MaximumMember 2020-03-31 0000886982 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputRevenueMultipleMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2020-03-31 0000886982 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputRevenueMultipleMember us-gaap:InvestmentsMember srt:WeightedAverageMember 2020-03-31 0000886982 gs:TradingAssetsFairValueDisclosureMember 2020-03-31 0000886982 gs:CorporateLoansMember gs:GlobalMarketsMember 2020-03-31 0000886982 us-gaap:RealEstateMember gs:GlobalMarketsMember 2020-03-31 0000886982 gs:OtherLoansMember gs:GlobalMarketsMember 2020-03-31 0000886982 gs:CorporateLoansMember gs:AssetManagementMember 2020-03-31 0000886982 us-gaap:RealEstateMember gs:AssetManagementMember 2020-03-31 0000886982 gs:OtherLoansMember gs:AssetManagementMember 2020-03-31 0000886982 gs:WealthManagementMember gs:ConsumerAndWealthManagementMember 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember gs:ConsumerAndWealthManagementMember 2020-03-31 0000886982 gs:InvestmentBankingMember gs:CorporateLoansMember 2020-03-31 0000886982 gs:ConsumerAndWealthManagementMember gs:InstallmentMember 2020-03-31 0000886982 gs:CorporateLoansMember gs:FairValueMember 2020-03-31 0000886982 gs:OtherLoansMember gs:FairValueMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember gs:FairValueMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:FairValueMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember gs:FairValueMember 2020-03-31 0000886982 gs:CorporateLoansMember gs:HeldForSaleMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember gs:HeldForSaleMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember gs:HeldForSaleMember 2020-03-31 0000886982 gs:OtherLoansMember gs:HeldForSaleMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member us-gaap:InvestmentsMember 2020-03-31 0000886982 us-gaap:FairValueInputsLevel3Member gs:NonTradingFairValueLoansMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember gs:FairValueMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember gs:FairValueMember 2020-03-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember gs:FairValueMember 2020-03-31 0000886982 gs:FairValueMember gs:InternallyRatedLoansMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember us-gaap:CommercialPortfolioSegmentMember 2020-03-31 0000886982 us-gaap:ConsumerPortfolioSegmentMember gs:InstallmentLoansMember 2020-03-31 0000886982 us-gaap:ConsumerPortfolioSegmentMember us-gaap:CreditCardReceivablesMember 2020-03-31 0000886982 gs:CorporateLoansMember us-gaap:CommercialPortfolioSegmentMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember us-gaap:CommercialPortfolioSegmentMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember us-gaap:CommercialPortfolioSegmentMember 2020-03-31 0000886982 gs:OtherLoansMember us-gaap:CommercialPortfolioSegmentMember 2020-03-31 0000886982 gs:CorporateLoansMember gs:FinancialAsset30To89DaysPastDueMember 2020-03-31 0000886982 gs:CorporateLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-03-31 0000886982 gs:FinancialAsset30To89DaysPastDueMember 2020-03-31 0000886982 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:FinancialAsset30To89DaysPastDueMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember gs:FinancialAsset30To89DaysPastDueMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember gs:FinancialAsset30To89DaysPastDueMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-03-31 0000886982 gs:InstallmentLoansMember gs:FinancialAsset30To89DaysPastDueMember 2020-03-31 0000886982 gs:InstallmentLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember gs:FinancialAsset30To89DaysPastDueMember 2020-03-31 0000886982 us-gaap:CreditCardReceivablesMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-03-31 0000886982 gs:OtherLoansMember gs:FinancialAsset30To89DaysPastDueMember 2020-03-31 0000886982 gs:OtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2020-03-31 0000886982 gs:CorporateLoansMember us-gaap:InternalInvestmentGradeMember 2020-03-31 0000886982 gs:CorporateLoansMember us-gaap:InternalNoninvestmentGradeMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember us-gaap:InternalInvestmentGradeMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember us-gaap:InternalNoninvestmentGradeMember 2020-03-31 0000886982 gs:WealthManagementAndOtherLoansMember gs:AmortizedCostMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember us-gaap:InternalNoninvestmentGradeMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember gs:UnratedMember 2020-03-31 0000886982 gs:OtherLoansMember us-gaap:InternalNoninvestmentGradeMember 2020-03-31 0000886982 gs:OtherLoansMember gs:UnratedMember 2020-03-31 0000886982 gs:OtherLoansMember gs:AmortizedCostMember 2020-03-31 0000886982 gs:InstallmentAndCreditCardLoansMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember us-gaap:InternalNoninvestmentGradeMember 2020-03-31 0000886982 gs:CorporateLoansMember gs:AmortizedCostMember 2020-03-31 0000886982 gs:CommercialRealEstateLoansMember gs:AmortizedCostMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember gs:UnratedMember 2020-03-31 0000886982 gs:ResidentialRealEstateLoansMember gs:AmortizedCostMember 2020-03-31 0000886982 gs:UnratedMember gs:CorporateLoansMember 2020-03-31 0000886982 us-gaap:InternalInvestmentGradeMember gs:CommercialRealEstateLoansMember 2020-03-31 0000886982 us-gaap:InternalInvestmentGradeMember gs:ResidentialRealEstateLoansMember 2020-03-31 0000886982 us-gaap:InternalInvestmentGradeMember gs:OtherLoansMember 2020-03-31 0000886982 gs:UnratedMember gs:WealthManagementAndOtherLoansMember 2020-03-31 0000886982 gs:AllClassesExceptConsumerMember us-gaap:InternalNoninvestmentGradeMember 2020-03-31 0000886982 us-gaap:InternalInvestmentGradeMember gs:AllClassesExceptConsumerMember 2020-03-31 0000886982 gs:UnratedMember gs:AllClassesExceptConsumerMember 2020-03-31 0000886982 gs:AmortizedCostMember gs:AllClassesExceptConsumerMember 2020-03-31 0000886982 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 2019-01-01 0000886982 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0000886982 us-gaap:AccountingStandardsUpdate201613Member 2020-01-01 2020-01-01 0000886982 us-gaap:CommercialPortfolioSegmentMember 2019-01-01 2019-12-31 0000886982 us-gaap:ConsumerPortfolioSegmentMember 2019-01-01 2019-12-31 0000886982 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember 2019-01-01 2019-12-31 0000886982 us-gaap:MortgageBackedSecuritiesMember 2019-01-01 2019-12-31 0000886982 gs:USGovernmentAndFederalAgencyObligationsHeldByFirmMember 2019-01-01 2019-12-31 0000886982 gs:NonUSGovernmentAndAgencyObligationsHeldByFirmMember 2019-01-01 2019-12-31 0000886982 gs:USGovernmentAndFederalAgencyObligationsThatCollateralizeSecuritiesPurchasedUnderAgreementsToResellAndSecuritiesBorrowedMember 2019-01-01 2019-12-31 0000886982 gs:NonUSGovernmentAndAgencyObligationsThatCollateralizeSecuritiesPurchasedUnderAgreementsToResellAndSecuritiesBorrowedMember 2019-01-01 2019-12-31 0000886982 gs:StandardizedCapitalRulesMember 2019-01-01 2019-12-31 0000886982 gs:AdvancedCapitalMember 2019-01-01 2019-12-31 0000886982 us-gaap:SubordinatedDebtMember 2019-01-01 2019-12-31 0000886982 gs:OtherRetainedInterestsMember 2019-01-01 2019-12-31 0000886982 gs:StandardizedCapitalRulesMember gs:DerivativesMember 2019-01-01 2019-12-31 0000886982 gs:AdvancedCapitalMember gs:DerivativesMember 2019-01-01 2019-12-31 0000886982 gs:StandardizedCapitalRulesMember gs:CommitmentsGuaranteesAndLoansMember 2019-01-01 2019-12-31 0000886982 gs:AdvancedCapitalMember gs:CommitmentsGuaranteesAndLoansMember 2019-01-01 2019-12-31 0000886982 gs:StandardizedCapitalRulesMember gs:SecuritiesFinancingTransactionsMember 2019-01-01 2019-12-31 0000886982 gs:AdvancedCapitalMember gs:SecuritiesFinancingTransactionsMember 2019-01-01 2019-12-31 0000886982 gs:StandardizedCapitalRulesMember gs:EquityInvestmentsMember 2019-01-01 2019-12-31 0000886982 gs:AdvancedCapitalMember gs:EquityInvestmentsMember 2019-01-01 2019-12-31 0000886982 gs:StandardizedCapitalRulesMember gs:OthersMember 2019-01-01 2019-12-31 0000886982 gs:AdvancedCapitalMember gs:OthersMember 2019-01-01 2019-12-31 0000886982 gs:StandardizedCapitalRulesMember gs:RegulatoryVarMember 2019-01-01 2019-12-31 0000886982 gs:AdvancedCapitalMember gs:RegulatoryVarMember 2019-01-01 2019-12-31 0000886982 gs:StandardizedCapitalRulesMember gs:StressedVarMember 2019-01-01 2019-12-31 0000886982 gs:AdvancedCapitalMember gs:StressedVarMember 2019-01-01 2019-12-31 0000886982 gs:StandardizedCapitalRulesMember gs:IncrementalRiskMember 2019-01-01 2019-12-31 0000886982 gs:AdvancedCapitalMember gs:IncrementalRiskMember 2019-01-01 2019-12-31 0000886982 gs:StandardizedCapitalRulesMember gs:ComprehensiveRiskMember 2019-01-01 2019-12-31 0000886982 gs:AdvancedCapitalMember gs:ComprehensiveRiskMember 2019-01-01 2019-12-31 0000886982 gs:StandardizedCapitalRulesMember gs:SpecificRiskMember 2019-01-01 2019-12-31 0000886982 gs:AdvancedCapitalMember gs:SpecificRiskMember 2019-01-01 2019-12-31 0000886982 us-gaap:SeriesBPreferredStockMember 2019-01-01 2019-12-31 0000886982 gs:SeriesLPreferredStockMember 2019-01-01 2019-12-31 0000886982 us-gaap:OtherIntangibleAssetsMember 2019-01-01 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:SecuredLoansAndLeasesReceivableMember us-gaap:InternalInvestmentGradeMember 2019-01-01 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:SecuredLoansAndLeasesReceivableMember us-gaap:InternalNoninvestmentGradeMember 2019-01-01 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:SecuredLoansAndLeasesReceivableMember gs:UnratedMember 2019-01-01 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:SecuredLoansAndLeasesReceivableMember 2019-01-01 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnsecuredLoansAndLeasesReceivableMember us-gaap:InternalInvestmentGradeMember 2019-01-01 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnsecuredLoansAndLeasesReceivableMember us-gaap:InternalNoninvestmentGradeMember 2019-01-01 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnsecuredLoansAndLeasesReceivableMember gs:UnratedMember 2019-01-01 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:UnsecuredLoansAndLeasesReceivableMember 2019-01-01 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalInvestmentGradeMember 2019-01-01 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember us-gaap:InternalNoninvestmentGradeMember 2019-01-01 2019-12-31 0000886982 gs:InternallyRatedLoansMember gs:LoansReceivableAndRelatedLendingCommitmentsMember gs:UnratedMember 2019-01-01 2019-12-31 0000886982 gs:InternallyRatedLoansMember 2019-01-01 2019-12-31 0000886982 gs:FicoScoreGreaterThan660Member exch:FICO 2019-01-01 2019-12-31 0000886982 gs:FicoScoreLessThan600Member exch:FICO 2019-01-01 2019-12-31 0000886982 exch:FICO 2019-01-01 2019-12-31 0000886982 srt:AmericasMember 2019-01-01 2019-12-31 0000886982 us-gaap:EMEAMember 2019-01-01 2019-12-31 0000886982 srt:AsiaMember 2019-01-01 2019-12-31 0000886982 srt:AmericasMember gs:OtherLoansMember 2019-01-01 2019-12-31 0000886982 us-gaap:EMEAMember gs:OtherLoansMember 2019-01-01 2019-12-31 0000886982 srt:AsiaMember gs:OtherLoansMember 2019-01-01 2019-12-31 0000886982 gs:OtherLoansMember 2019-01-01 2019-12-31 0000886982 srt:AmericasMember us-gaap:CreditCardReceivablesMember 2019-01-01 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember 2019-01-01 2019-12-31 0000886982 srt:AmericasMember gs:InstallmentLoansMember 2019-01-01 2019-12-31 0000886982 gs:InstallmentLoansMember 2019-01-01 2019-12-31 0000886982 srt:AmericasMember gs:ResidentialRealEstateLoansMember 2019-01-01 2019-12-31 0000886982 us-gaap:EMEAMember gs:ResidentialRealEstateLoansMember 2019-01-01 2019-12-31 0000886982 srt:AsiaMember gs:ResidentialRealEstateLoansMember 2019-01-01 2019-12-31 0000886982 gs:ResidentialRealEstateLoansMember 2019-01-01 2019-12-31 0000886982 srt:AmericasMember gs:CommercialRealEstateLoansMember 2019-01-01 2019-12-31 0000886982 us-gaap:EMEAMember gs:CommercialRealEstateLoansMember 2019-01-01 2019-12-31 0000886982 srt:AsiaMember gs:CommercialRealEstateLoansMember 2019-01-01 2019-12-31 0000886982 gs:CommercialRealEstateLoansMember 2019-01-01 2019-12-31 0000886982 srt:AmericasMember gs:WealthManagementAndOtherLoansMember 2019-01-01 2019-12-31 0000886982 us-gaap:EMEAMember gs:WealthManagementAndOtherLoansMember 2019-01-01 2019-12-31 0000886982 srt:AsiaMember gs:WealthManagementAndOtherLoansMember 2019-01-01 2019-12-31 0000886982 gs:WealthManagementAndOtherLoansMember 2019-01-01 2019-12-31 0000886982 srt:AmericasMember gs:CorporateLoansMember 2019-01-01 2019-12-31 0000886982 us-gaap:EMEAMember gs:CorporateLoansMember 2019-01-01 2019-12-31 0000886982 srt:AsiaMember gs:CorporateLoansMember 2019-01-01 2019-12-31 0000886982 gs:CorporateLoansMember 2019-01-01 2019-12-31 0000886982 gs:ConsumerRetailHealthcareMember 2019-01-01 2019-12-31 0000886982 gs:DiversifiedIndustrialsMember 2019-01-01 2019-12-31 0000886982 gs:FinancialInstitutionsMember 2019-01-01 2019-12-31 0000886982 gs:FundsMember 2019-01-01 2019-12-31 0000886982 gs:NaturalResourcesUtilitiesMember 2019-01-01 2019-12-31 0000886982 us-gaap:RealEstateLoanMember 2019-01-01 2019-12-31 0000886982 gs:TechnologyMediaTelecommunicationsMember 2019-01-01 2019-12-31 0000886982 gs:OtherMember 2019-01-01 2019-12-31 0000886982 gs:InstallmentLoansMember stpr:CA 2019-01-01 2019-12-31 0000886982 stpr:TX gs:InstallmentLoansMember 2019-01-01 2019-12-31 0000886982 stpr:NY gs:InstallmentLoansMember 2019-01-01 2019-12-31 0000886982 stpr:FL gs:InstallmentLoansMember 2019-01-01 2019-12-31 0000886982 stpr:IL gs:InstallmentLoansMember 2019-01-01 2019-12-31 0000886982 gs:OtherUsStatesMember gs:InstallmentLoansMember 2019-01-01 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember stpr:CA 2019-01-01 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember stpr:TX 2019-01-01 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember stpr:NY 2019-01-01 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember stpr:FL 2019-01-01 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember stpr:IL 2019-01-01 2019-12-31 0000886982 us-gaap:CreditCardReceivablesMember gs:OtherUsStatesMember 2019-01-01 2019-12-31 0000886982 srt:ParentCompanyMember us-gaap:SeriesAPreferredStockMember 2020-04-06 2020-04-06 0000886982 us-gaap:SeriesCPreferredStockMember srt:ParentCompanyMember 2020-04-06 2020-04-06 0000886982 us-gaap:SeriesDPreferredStockMember srt:ParentCompanyMember 2020-04-06 2020-04-06 0000886982 gs:SeriesJPreferredStockMember srt:ParentCompanyMember 2020-04-06 2020-04-06 0000886982 gs:SeriesKPreferredStockMember srt:ParentCompanyMember 2020-04-06 2020-04-06 0000886982 gs:SeriesMPreferredStockMember srt:ParentCompanyMember 2020-04-06 2020-04-06 0000886982 gs:SeriesNPreferredStockMember srt:ParentCompanyMember 2020-04-06 2020-04-06 0000886982 gs:SeriesOPreferredStockMember srt:ParentCompanyMember 2020-04-06 2020-04-06 0000886982 gs:SeriesPPreferredStockMember srt:ParentCompanyMember 2020-04-06 2020-04-06 0000886982 us-gaap:SeriesEPreferredStockMember srt:ParentCompanyMember 2020-04-06 2020-04-06 0000886982 us-gaap:AccountingStandardsUpdate201613Member srt:MaximumMember 2020-01-01 0000886982 us-gaap:AccountingStandardsUpdate201613Member srt:MinimumMember 2020-01-01 0000886982 us-gaap:CommodityContractMember 2018-12-31 0000886982 us-gaap:EquityContractMember 2018-12-31 0000886982 us-gaap:InterestRateContractMember 2018-12-31 0000886982 us-gaap:CreditRiskContractMember 2018-12-31 0000886982 us-gaap:ForeignExchangeContractMember 2018-12-31 0000886982 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0000886982 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000886982 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-31 0000886982 gs:DebtValuationAdjustmentMember 2018-12-31 0000886982 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0000886982 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-31 0000886982 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000886982 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-03-31 0000886982 gs:DebtValuationAdjustmentMember 2019-03-31 0000886982 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember 2018-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember 2018-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByResidentialRealEstateMember 2018-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:CorporateLoansAndDebtSecuritiesMember 2018-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:OtherCashInstrumentsMember 2018-12-31 0000886982 us-gaap:PreferredStockMember 2018-12-31 0000886982 us-gaap:CommonStockMember 2018-12-31 0000886982 gs:RestrictedStockUnitsAndEmployeeStockOptionsMember 2018-12-31 0000886982 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000886982 us-gaap:RetainedEarningsMember 2018-12-31 0000886982 us-gaap:RetainedEarningsMember us-gaap:AccountingStandardsUpdate201602Member 2018-12-31 0000886982 us-gaap:TreasuryStockMember 2018-12-31 0000886982 gs:OtherFinancialLiabilitiesMember 2018-12-31 0000886982 gs:OtherFinancialLiabilitiesMember us-gaap:DepositsMember 2018-12-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:RepurchaseAgreementsAtFairValueMember 2018-12-31 0000886982 gs:OtherSecuredFinancingsAtFairValueMember gs:OtherFinancialLiabilitiesMember 2018-12-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:UnsecuredShortTermBorrowingsIncludingCurrentPortionOfUnsecuredLongTermBorrowingsAtFairValueMember 2018-12-31 0000886982 gs:OtherFinancialLiabilitiesMember us-gaap:OtherLiabilitiesMember 2018-12-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:UnsecuredLongTermBorrowingsAtFairValueMember 2018-12-31 0000886982 us-gaap:ForeignExchangeContractMember 2019-03-31 0000886982 us-gaap:CreditRiskContractMember 2019-03-31 0000886982 us-gaap:InterestRateContractMember 2019-03-31 0000886982 us-gaap:EquityContractMember 2019-03-31 0000886982 us-gaap:CommodityContractMember 2019-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByCommercialRealEstateMember 2019-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:LoansAndSecuritiesBackedByResidentialRealEstateMember 2019-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:CorporateLoansAndDebtSecuritiesMember 2019-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:OtherCashInstrumentsMember 2019-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember 2019-03-31 0000886982 gs:TradingCashInstrumentsLiabilitiesMember 2018-12-31 0000886982 gs:TradingCashInstrumentsLiabilitiesMember 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:RepurchaseAgreementsAtFairValueMember 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember us-gaap:DepositsMember 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember us-gaap:OtherLiabilitiesMember 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:UnsecuredShortTermBorrowingsIncludingCurrentPortionOfUnsecuredLongTermBorrowingsAtFairValueMember 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:OtherSecuredFinancingsAtFairValueMember 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember 2019-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:UnsecuredLongTermBorrowingsAtFairValueMember 2019-03-31 0000886982 us-gaap:LoansReceivableMember 2018-12-31 0000886982 gs:CorporateLoansMember 2018-12-31 0000886982 gs:CommercialRealEstateLoansMember 2018-12-31 0000886982 gs:ResidentialRealEstateLoansMember 2018-12-31 0000886982 gs:WealthManagementAndOtherLoansMember 2018-12-31 0000886982 gs:WealthManagementAndOtherLoansMember 2019-03-31 0000886982 gs:ResidentialRealEstateLoansMember 2019-03-31 0000886982 gs:CommercialRealEstateLoansMember 2019-03-31 0000886982 gs:CorporateLoansMember 2019-03-31 0000886982 us-gaap:LoansReceivableMember 2019-03-31 0000886982 us-gaap:InvestmentsMember gs:SecuritiesBackedByRealEstateMember 2018-12-31 0000886982 us-gaap:InvestmentsMember gs:CorporateLoansAndDebtSecuritiesMember 2018-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:OtherDebtSecuritiesMember 2018-12-31 0000886982 us-gaap:InvestmentsMember 2018-12-31 0000886982 us-gaap:InvestmentsMember us-gaap:EquitySecuritiesMember 2018-12-31 0000886982 us-gaap:RetainedEarningsMember 2019-03-31 0000886982 us-gaap:TreasuryStockMember 2019-03-31 0000886982 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000886982 us-gaap:CommonStockMember 2019-03-31 0000886982 gs:RestrictedStockUnitsAndEmployeeStockOptionsMember 2019-03-31 0000886982 us-gaap:PreferredStockMember 2019-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:OtherDebtSecuritiesMember 2019-03-31 0000886982 us-gaap:InvestmentsMember gs:SecuritiesBackedByRealEstateMember 2019-03-31 0000886982 us-gaap:InvestmentsMember gs:CorporateLoansAndDebtSecuritiesMember 2019-03-31 0000886982 us-gaap:InvestmentsMember 2019-03-31 0000886982 us-gaap:InvestmentsMember us-gaap:EquitySecuritiesMember 2019-03-31 0000886982 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember 2019-12-31 0000886982 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0000886982 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000886982 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0000886982 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-12-31 0000886982 gs:DebtValuationAdjustmentMember 2019-12-31 0000886982 us-gaap:AccumulatedTranslationAdjustmentMember 2020-03-31 0000886982 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000886982 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-03-31 0000886982 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-03-31 0000886982 gs:DebtValuationAdjustmentMember 2020-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:OtherCashInstrumentsMember 2019-12-31 0000886982 us-gaap:PreferredStockMember 2019-12-31 0000886982 us-gaap:CommonStockMember 2019-12-31 0000886982 gs:RestrictedStockUnitsAndEmployeeStockOptionsMember 2019-12-31 0000886982 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000886982 us-gaap:RetainedEarningsMember 2019-12-31 0000886982 us-gaap:RetainedEarningsMember us-gaap:AccountingStandardsUpdate201602Member 2019-12-31 0000886982 us-gaap:TreasuryStockMember 2019-12-31 0000886982 gs:OtherFinancialLiabilitiesMember 2019-12-31 0000886982 gs:OtherFinancialLiabilitiesMember us-gaap:DepositsMember 2019-12-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:RepurchaseAgreementsAtFairValueMember 2019-12-31 0000886982 gs:OtherSecuredFinancingsAtFairValueMember gs:OtherFinancialLiabilitiesMember 2019-12-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:UnsecuredShortTermBorrowingsIncludingCurrentPortionOfUnsecuredLongTermBorrowingsAtFairValueMember 2019-12-31 0000886982 gs:OtherFinancialLiabilitiesMember us-gaap:OtherLiabilitiesMember 2019-12-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:UnsecuredLongTermBorrowingsAtFairValueMember 2019-12-31 0000886982 gs:TradingCashInstrumentsAssetsMember gs:OtherCashInstrumentsMember 2020-03-31 0000886982 gs:TradingCashInstrumentsAssetsMember 2020-03-31 0000886982 gs:TradingCashInstrumentsLiabilitiesMember 2019-12-31 0000886982 gs:TradingCashInstrumentsLiabilitiesMember 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:RepurchaseAgreementsAtFairValueMember 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember us-gaap:DepositsMember 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember us-gaap:OtherLiabilitiesMember 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:UnsecuredShortTermBorrowingsIncludingCurrentPortionOfUnsecuredLongTermBorrowingsAtFairValueMember 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:OtherSecuredFinancingsAtFairValueMember 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember 2020-03-31 0000886982 gs:OtherFinancialLiabilitiesMember gs:UnsecuredLongTermBorrowingsAtFairValueMember 2020-03-31 0000886982 us-gaap:LoansReceivableMember 2019-12-31 0000886982 us-gaap:LoansReceivableMember 2020-03-31 0000886982 us-gaap:RetainedEarningsMember 2020-03-31 0000886982 us-gaap:TreasuryStockMember 2020-03-31 0000886982 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000886982 us-gaap:CommonStockMember 2020-03-31 0000886982 gs:RestrictedStockUnitsAndEmployeeStockOptionsMember 2020-03-31 0000886982 us-gaap:PreferredStockMember 2020-03-31 0000886982 us-gaap:CommercialPortfolioSegmentMember 2018-12-31 0000886982 us-gaap:ConsumerPortfolioSegmentMember 2018-12-31 0000886982 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember 2018-12-31 0000886982 gs:StandardizedCapitalRulesMember 2018-12-31 0000886982 gs:AdvancedCapitalMember 2018-12-31 iso4217:USD xbrli:pure xbrli:shares iso4217:CAD gs:Segment iso4217:USD xbrli:shares gs:Arrangements gs:yr iso4217:USD utr:bbl utr:MMBTU
Table of Contents
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form
 10-Q
☒
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
     
    
 
For the quarterly period ended March 31, 2020
 
     
    
 
    
 
or
   
☐
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
     
    
 
For the transition period from
 
to
Commission File Number:
001-14965
The Goldman Sachs Group, Inc.
(Exact name of registrant as specified in its charter)
Delaware
 
13-4019460
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
   
200 West Street, New York, N.Y.
 
10282
(Address of principal executive offices)
 
(Zip Code)
(212)
902-1000
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading
symbol
 
Exchange
on which
registered
Common stock, par value $.01 per share
 
GS
 
NYSE
     
Depositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate
Non-Cumulative
Preferred Stock, Series A
 
GS PrA
 
NYSE
     
Depositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate
Non-Cumulative
Preferred Stock, Series C
 
GS PrC
 
NYSE
     
Depositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate
Non-Cumulative
Preferred Stock, Series D
 
GS PrD
 
NYSE
     
Depositary Shares, Each Representing 1/1,000th Interest in a Share of 5.50%
 Fixed-to-Floating
 Rate
 Non-Cumulative
 Preferred Stock, Series J
 
GS PrJ
 
NYSE
     
Depositary Shares, Each Representing 1/1,000th Interest in a Share of 6.375%
Fixed-to-Floating
Rate
Non-Cumulative
Preferred Stock, Series K
 
GS PrK
 
NYSE
     
Depositary Shares, Each Representing 1/1,000th Interest in a Share of 6.30%
Non-Cumulative
Preferred Stock, Series N
 
GS PrN
 
NYSE
     
5.793%
Fixed-to-Floating
Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital II
 
GS/43PE
 
NYSE
     
Floating Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital III
 
GS/43PF
 
NYSE
     
Medium-Term Notes, Series A, Index-Linked Notes due 2037 of GS Finance Corp.
 
GCE
 
NYSE Arca
     
Medium-Term Notes, Series B, Index-Linked Notes due 2037
 
GSC
 
NYSE Arca
     
Medium-Term Notes, Series E, Index-Linked Notes due 2028 of GS Finance Corp.
 
FRLG
 
NYSE Arca
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 
☒
 Yes 
☐
 No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(
§
232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 
☒
 Yes 
☐
 No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule
 12b-2
of the Exchange Act.
 
Large accelerated filer 
☒
   
Accelerated filer 
☐
   
Non-accelerated
 filer 
☐
   
Smaller reporting company 
☐
   
Emerging growth company 
☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule
 12b-2
of the Exchange Act). 
☐
 Yes 
☒
 No
As of April 17, 2020, there were 343,886,589 shares of the registrant’s common stock outstanding.
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2020
INDEX
Form
 10-Q
Item Number
 
Page No.
PART I
 
 
 
FINANCIAL INFORMATION
 
1  
 
Item 1
 
 
Financial Statements (Unaudited)
 
1  
 
Consolidated Statements of Earnings
 
1  
 
Consolidated Statements of Comprehensive Income
 
1  
 
Consolidated Balance Sheets
 
2  
 
Consolidated Statements of Changes in Shareholders’ Equity
 
3  
 
Consolidated Statements of Cash Flows
 
4  
 
Notes to Consolidated Financial Statements
 
5  
 
Note 1.  Description of Business
 
5  
 
Note 2.  Basis of Presentation
 
5  
 
Note 3.  Significant Accounting Policies
 
6  
 
Note 4.  Fair Value Measurements
 
11  
 
Note 5.  Trading Assets and Liabilities
 
16  
 
Note 6.  Trading Cash Instruments
 
17  
 
Note 7.  Derivatives and Hedging Activities
 
20  
 
Note 8.  Investments
 
29  
 
Note 9.  Loans
 
34  
 
Note 10. Fair Value Option
 
43  
 
Note 11. Collateralized Agreements and Financings
 
47  
 
Note 12. Other Assets
 
51  
 
Note 13. Deposits
 
54  
 
Note 14. Unsecured Borrowings
 
55  
 
Note 15. Other Liabilities
 
58  
 
Note 16. Securitization Activities
 
59  
 
Note 17. Variable Interest Entities
 
61  
 
Note 18. Commitments, Contingencies and Guarantees
 
64  
 
Note 19. Shareholders’ Equity
 
68  
 
Note 20. Regulation and Capital Adequacy
 
70  
 
Note 21. Earnings Per Common Share
 
78  
 
Note 22. Transactions with Affiliated Funds
 
78  
 
Note 23. Interest Income and Interest Expense
 
79  
 
Note 24. Income Taxes
 
79  
 
Note 25. Business Segments
 
80  
 
Note 26. Credit Concentrations
 
82  
 
Note 27. Legal Proceedings
 
83  
 
Page No.
 
Report of Independent Registered Public Accounting Firm
 
93  
 
Statistical Disclosures
 
94  
 
Item 2
 
 
Management’s Discussion and Analysis of Financial Condition
and Results of Operations
 
96  
 
Introduction
 
96  
 
Executive Overview
 
96  
 
Business Environment
 
98  
 
Critical Accounting Policies
 
98  
 
Use of Estimates
 
100  
 
Recent Accounting Developments
 
101  
 
Results of Operations
 
101  
 
Balance Sheet and Funding Sources
 
114  
 
Equity Capital Management and Regulatory Capital
 
117  
 
Regulatory and Other Matters
 
122  
 
Off-Balance Sheet Arrangements and Contractual Obligations
 
124  
 
Risk Management
 
126  
 
Overview and Structure of Risk Management
 
126  
 
Liquidity Risk Management
 
131  
 
Market Risk Management
 
137  
 
Credit Risk Management
 
142  
 
Operational Risk Management
 
149  
 
Model Risk Management
 
150  
 
Available Information
 
151  
 
Cautionary Statement Pursuant to the U.S. Private Securities
Litigation Reform Act of 1995
 
152  
 
Item 3
 
 
Quantitative and Qualitative Disclosures About Market Risk
 
154  
 
Item 4
 
 
Controls and Procedures
 
154  
 
PART II
 
 
OTHER INFORMATION
 
154  
 
Item 1
 
 
Legal Proceedings
 
154  
 
Item 1A
 
 
Risk Factors
 
154  
 
Item 2
 
 
Unregistered Sales of Equity Securities and Use of Proceeds
 
155  
 
Item 6
 
 
Exhibits
 
155  
 
SIGNATURES
 
155  
Goldman Sachs March 2020 Form 10-Q
Table of Contents
PART I. FINANCIAL INFORMATION
Item 1.    Financial Statements (Unaudited)
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(Unaudited)
    
 
Three Months
Ended March
 
         
in millions, except per share amounts
 
 
2020
 
  
2019
 
Revenues
 
 
 
  
 
Investment banking
 
 
$1,742
 
  
$ 1,618
 
Investment management
 
 
1,768
 
  
1,436
 
Commissions and fees
 
 
1,020
 
  
745
 
Market making
 
 
3,682
 
  
2,723
 
Other principal transactions
 
 
(782
)
  
1,067
 
Total
non-interest
revenues
 
 
7,430
 
  
7,589
 
 
Interest income
 
 
4,750
 
  
5,597
 
Interest expense
 
 
3,437
 
  
4,379
 
Net interest income
 
 
1,313
 
  
1,218
 
Total net revenues
 
 
8,743
 
  
8,807
 
 
Provision for credit losses
 
 
937
 
  
224
 
 
Operating expenses
  
   
 
Compensation and benefits
 
 
3,235
 
  
3,259
 
Brokerage, clearing, exchange and distribution fees
 
 
975
 
  
762
 
Market development
 
 
153
 
  
184
 
Communications and technology
 
 
321
 
  
286
 
Depreciation and amortization
 
 
437
 
  
368
 
Occupancy
 
 
238
 
  
225
 
Professional fees
 
 
347
 
  
298
 
Other expenses
 
 
752
 
  
482
 
Total operating expenses
 
 
6,458
 
  
5,864
 
 
Pre-tax
earnings
 
 
1,348
 
  
2,719
 
Provision for taxes
 
 
135
 
  
468
 
Net earnings
 
 
1,213
 
  
2,251
 
Preferred stock dividends
 
 
90
 
  
69
 
Net earnings applicable to common shareholders
 
 
$1,123
 
  
$ 2,182
 
 
Earnings per common share
 
 
 
  
 
Basic
 
 
$  3.12
 
  
$   5.73
 
Diluted
 
 
$  3.11
 
  
$   5.71
 
 
Average common shares
 
 
 
  
 
Basic
 
 
358.0
 
  
379.8
 
Diluted
 
 
361.1
 
  
382.4
 
Consolidated Statements of Comprehensive Income
(Unaudited)
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Net earnings
 
 
$1,213
 
  
$ 2,251
 
Other comprehensive income/(loss) adjustments, net of tax:
 
 
 
  
 
Currency translation
 
 
(17
)
  
4
 
Debt valuation adjustment
 
 
2,914
 
  
(1,417
)
Pension and postretirement liabilities
 
 
7
 
  
(7
)
Available-for-sale
securities
 
 
517
 
  
114
 
Other comprehensive income/(loss)
 
 
3,421
 
  
(1,306
)
Comprehensive income
 
 
$4,634
 
  
$    945
 
The accompanying notes are an integral part of these consolidated financial statements.
1
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December 2019
 
Assets
 
 
 
  
 
Cash and cash equivalents
 
 
$  
 
105,489
 
  
$133,546
 
Collateralized agreements:
 
 
 
  
 
Securities purchased under agreements to resell (at fair value)
 
 
132,333
 
  
85,691
 
Securities borrowed (includes
$29,771
and $26,279 at fair value)
 
 
121,670
 
  
136,071
 
Customer and other receivables (includes
$53
and $53 at fair value)
 
 
120,927
 
  
74,605
 
Trading assets (at fair value and includes
$59,128
and $66,605 pledged as collateral)
 
 
375,471
 
  
355,332
 
Investments (includes
$62,655
and $57,827 at fair value, and
$10,765
and $10,968 pledged as collateral)
 
 
68,694
 
  
63,937
 
Loans (net of allowance of
$2,868
and $1,441, and includes
$13,829
and $14,386 at fair value)
 
 
128,453
 
  
108,904
 
Other assets
 
 
36,719
 
  
34,882
 
Total assets
 
 
$1,089,756
 
  
$992,968
 
 
Liabilities and shareholders’ equity
 
 
 
  
 
Deposits (includes
$24,722
and $17,765 at fair value)
 
 
$  
 
219,994
 
  
$190,019
 
Collateralized financings:
 
 
 
  
 
Securities sold under agreements to repurchase (at fair value)
 
 
95,864
 
  
117,756
 
Securities loaned (includes
$1,148
and $714 at fair value)
 
 
13,869
 
  
14,985
 
Other secured financings (includes
$29,991
and $18,071 at fair value)
 
 
37,196
 
  
19,277
 
Customer and other payables
 
 
213,178
 
  
174,817
 
Trading liabilities (at fair value)
 
 
136,358
 
  
108,835
 
Unsecured short-term borrowings (includes
$18,983
and $26,007 at fair value)
 
 
37,148
 
  
48,287
 
Unsecured long-term borrowings (includes
$43,313
and $43,661 at fair value)
 
 
225,476
 
  
207,076
 
Other liabilities (includes
$327
and $150 at fair value)
 
 
18,294
 
  
21,651
 
Total liabilities
 
 
997,377
 
  
902,703
 
 
Commitments, contingencies and guarantees
 
 
 
  
 
 
Shareholders’ equity
 
 
 
  
 
Preferred stock; aggregate liquidation preference of
$11,203
and $11,203
 
 
11,203
 
  
11,203
 
Common stock; 
901,409,000
 and 896,782,650 shares issued, and 
343,856,654
 and 347,343,184 shares outstanding
 
 
9
 
  
9
 
Share-based awards
 
 
3,037
 
  
3,195
 
Nonvoting common stock; no shares issued and outstanding
 
 
–
 
  
–
 
Additional
paid-in
capital
 
 
55,621
 
  
54,883
 
Retained earnings
 
 
106,501
 
  
106,465
 
Accumulated other comprehensive income/(loss)
 
 
1,937
 
  
(1,484
)
Stock held in treasury, at cost;
557,552,348
and 549,439,468 shares
 
 
(85,929
)
  
(84,006
)
Total shareholders’ equity
 
 
92,379
 
  
90,265
 
Total liabilities and shareholders’ equity
 
 
$1,089,756
 
  
$992,968
 
The accompanying notes are an integral part of these consolidated financial statements.
Goldman Sachs March 2020 Form 10-Q
 
2
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Shareholders’ Equity
(Unaudited)
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Preferred stock
 
 
 
  
 
Beginning balance
 
 
$  11,203
 
  
$  11,203
 
Issued
 
 
350
 
  
–
 
Redeemed
 
 
(350
)
  
–
 
Ending balance
 
 
11,203
 
  
11,203
 
Common stock
 
 
 
  
 
Beginning balance
 
 
9
 
  
9
 
Issued
 
 
–
 
  
–
 
Ending balance
 
 
9
 
  
9
 
Share-based awards
 
 
 
  
 
Beginning balance
 
 
3,195
 
  
2,845
 
Issuance and amortization of share-based awards
 
 
1,397
 
  
1,506
 
Delivery of common stock underlying share-based awards
 
 
(1,547
)
  
(1,596
)
Forfeiture of share-based awards
 
 
(8
)
  
(16
)
Ending balance
 
 
3,037
 
  
2,739
 
Additional
paid-in
capital
 
 
 
  
 
Beginning balance
 
 
54,883
 
  
54,005
 
Delivery of common stock underlying share-based awards
 
 
1,541
 
  
1,587
 
Cancellation of share-based awards in satisfaction of withholding tax requirements
 
 
(803
)
  
(730
)
Ending balance
 
 
55,621
 
  
54,862
 
Retained earnings
 
 
 
  
 
Beginning balance, as previously reported
 
 
106,465
 
  
100,100
 
Cumulative effect of change in accounting principle for:
 
 
 
  
 
Current expected credit losses, net of tax
 
 
(638
)
  
–
 
Leases, net of tax
 
 
–
 
  
12
 
Beginning balance, adjusted
 
 
105,827
 
  
100,112
 
Net earnings
 
 
1,213
 
  
2,251
 
Dividends and dividend equivalents declared on common stock and share-based awards
 
 
(449
)
  
(306
)
Dividends declared on preferred stock
 
 
(89
)
  
(69
)
Preferred stock redemption premium
 
 
(1
)
  
–
 
Ending balance
 
 
106,501
 
  
101,988
 
Accumulated other comprehensive income/(loss)
 
 
 
  
 
Beginning balance
 
 
(1,484
)
  
693
 
Other comprehensive income/(loss)
 
 
3,421
 
  
(1,306
)
Ending balance
 
 
1,937
 
  
(613
)
Stock held in treasury, at cost
 
 
 
  
 
Beginning balance
 
 
(84,006
)
  
(78,670
)
Repurchased
 
 
(1,928
)
  
(1,250
)
Reissued
 
 
10
 
  
11
 
Other
 
 
(5
)
  
(6
)
Ending balance
 
 
(85,929
)
  
(79,915
)
Total shareholders’ equity
 
 
$  92,379
 
  
$  90,273
 
The accompanying notes are an integral part of these consolidated financial statements.
3
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Cash flows from operating activities
 
 
 
  
 
Net earnings
 
 
$    1,213
 
  
$    2,251
 
Adjustments to reconcile net earnings to net cash used for operating activities:
 
 
 
  
 
Depreciation and amortization
 
 
437
 
  
368
 
Share-based compensation
 
 
1,395
 
  
1,503
 
Gain related to extinguishment of unsecured borrowings
 
 
(1
)
  
–
 
Provision for credit losses
 
 
937
 
  
224
 
Changes in operating assets and liabilities:
 
 
 
  
 
Customer and other receivables and payables, net
 
 
(7,961
)
  
3,991
 
Collateralized transactions (excluding other secured financings), net
 
 
(55,249
)
  
(13,215
)
Trading assets
 
 
(20,580
)
  
(26,494
)
Trading liabilities
 
 
27,523
 
  
(7,888
)
Loans held for sale, net
 
 
2,624
 
  
652
 
Other, net
 
 
(3,369
)
  
(5,760
)
Net cash used for operating activities
 
 
(53,031
)
  
(44,368
)
Cash flows from investing activities
 
 
 
  
 
Purchase of property, leasehold improvements and equipment
 
 
(2,843
)
  
(2,128
)
Proceeds from sales of property, leasehold improvements and equipment
 
 
397
 
  
2,266
 
Purchase of investments
 
 
(10,214
)
  
(6,848
)
Proceeds from sales and paydowns of investments
 
 
3,889
 
  
6,207
 
Loans, net (excluding loans held for sale)
 
 
(23,565
)
  
(1,636
)
Net cash used for investing activities
 
 
(32,336
)
  
(2,139
)
Cash flows from financing activities
 
 
 
  
 
Unsecured short-term borrowings, net
 
 
2,915
 
  
381
 
Other secured financings (short-term), net
 
 
16,307
 
  
(2,690
)
Proceeds from issuance of other secured financings (long-term)
 
 
2,969
 
  
1,442
 
Repayment of other secured financings (long-term), including the current portion
 
 
(445
)
  
(525
)
Purchase of Trust Preferred securities
 
 
(11
)
  
–
 
Proceeds from issuance of unsecured long-term borrowings
 
 
26,506
 
  
6,253
 
Repayment of unsecured long-term borrowings, including the current portion
 
 
(16,175
)
  
(7,251
)
Derivative contracts with a financing element, net
 
 
134
 
  
2,586
 
Deposits, net
 
 
28,381
 
  
5,594
 
Preferred stock redemption
 
 
(350
)
  
–
 
Common stock repurchased
 
 
(1,928
)
  
(1,250
)
Settlement of share-based awards in satisfaction of withholding tax requirements
 
 
(804
)
  
(730
)
Dividends and dividend equivalents paid on common stock, preferred stock and share-based awards
 
 
(538
)
  
(375
)
Proceeds from issuance of preferred stock, net of issuance costs
 
 
349
 
  
–
 
Other financing, net
 
 
–
 
  
409
 
Net cash provided by financing activities
 
 
57,310
 
  
3,844
 
Net decrease in cash and cash equivalents
 
 
(28,057
)
  
(42,663
)
Cash and cash equivalents, beginning balance
 
 
133,546
 
  
130,547
 
Cash and cash equivalents, ending balance
 
 
$105,489
 
  
$  87,884
 
 
Supplemental disclosures:
 
 
 
  
 
Cash payments for interest, net of capitalized interest
 
 
$    4,041
 
  
$    4,372
 
Cash payments/(refunds) for income taxes, net
 
 
$      
 
474
 
  
$      (109
)
See Notes 12, 14 and 16 for information about
non-cash
activities.
The accompanying notes are an integral part of these consolidated financial statements.
Goldman Sachs March 2020 Form 10-Q
 
4
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 1.
Description of Business
The Goldman Sachs Group, Inc. (Group Inc. or parent company), a Delaware corporation, together with its consolidated subsidiaries (collectively, the firm), is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
The firm reports its activities in the following four business segments:
Investment Banking
The firm provides a broad range of investment banking services to a diverse group of corporations, financial institutions, investment funds and governments. Services include strategic advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense activities, restructurings and spin-offs, and equity and debt underwriting of public offerings and private placements. The firm also provides lending to corporate clients, including middle-market lending, relationship lending and acquisition financing.
Global Markets
The firm facilitates client transactions and makes markets in fixed income, equity, currency and commodity products with institutional clients, such as corporations, financial institutions, investment funds and governments. The firm also makes markets in and clears institutional client transactions on major stock, options and futures exchanges worldwide and provides prime brokerage and other equities financing activities, including securities lending, margin lending and swaps. The firm also provides financing to clients through repurchase agreements, as well as through structured credit, warehouse and asset-backed lending.
Asset Management
The firm manages assets and offers investment products (primarily through separately managed accounts and commingled vehicles, such as mutual funds and private investment funds) across all major asset classes to a diverse set of institutional clients and a network of third-party distributors around the world. The firm makes equity investments, which include alternative investing activities related to public and private equity investments in corporate, real estate and infrastructure assets, as well as investments through consolidated investment entities, substantially all of which are engaged in real estate investment activities. The firm also invests in corporate debt and provides financing for real estate and other assets.
Consumer & Wealth Management
The firm provides investing and wealth advisory solutions, including financial planning and counseling, executing brokerage transactions and managing assets for individuals in its wealth management business. The firm also provides loans and accepts deposits through its consumer banking digital platform,
Marcus by Goldman Sachs
,
and through its private bank, as well as issues credit cards to consumers.
Note 2.
Basis of Presentation
These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and include the accounts of Group Inc. and all other entities in which the firm has a controlling financial interest. Intercompany transactions and balances have been eliminated.
These consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements included in the firm’s Annual Report on Form
 10-K
for the year ended December 31, 2019. References to “the 2019 Form
 10-K”
are to the firm’s Annual Report on Form
 10-K
for the year ended December 31, 2019. Certain disclosures included in the annual financial statements have been condensed or omitted from these financial statements as they are not required for interim financial statements under U.S. GAAP and the rules of the Securities and Exchange Commission.
These unaudited consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These adjustments are of a normal, recurring nature. Interim period operating results may not be indicative of the operating results for a full year.
All references to March 2020 and March 2019 refer to the firm’s periods ended, or the dates, as the context requires, March 31, 2020 and March 31, 2019, respectively. All references to December 2019 refer to the date December 31, 2019. Any reference to a future year refers to a year ending on December 31 of that year.
Beginning in the fourth quarter of 2019, the firm changed its business segments and balance sheet presentation to better reflect the nature of the firm’s activities. See Note 2 in Part II, Item 8 of the 2019 Form 10-K for further information. Reclassifications have been made to previously reported amounts to conform to the current presentation.
   
5
 
Goldman Sachs March 2020 Form 10-Q
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 3.
Significant Accounting Policies
The firm’s significant accounting policies include when and how to measure the fair value of assets and liabilities, measuring the allowance for credit losses on loans and lending commitments accounted for at amortized cost, and when to consolidate an entity. See Note 4 for policies on fair value measurements, Note 9 for policies on the allowance for credit losses, and below and Note 17 for policies on consolidation accounting. All other significant accounting policies are either described below or included in the following footnotes:
 
     
     
Fair Value Measurements
  
Note 4
 
     
Trading Assets and Liabilities
  
Note 5
 
     
Trading Cash Instruments
  
Note 6
 
     
Derivatives and Hedging Activities
  
Note 7
 
     
Investments
  
Note 8
 
     
Loans
  
Note 9
 
     
Fair Value Option
  
Note 10
 
     
Collateralized Agreements and Financings
  
Note 11
 
     
Other Assets
  
Note 12
 
     
Deposits
  
Note 13
 
     
Unsecured Borrowings
  
Note 14
 
     
Other Liabilities
  
Note 15
 
     
Securitization Activities
  
Note 16
 
     
Variable Interest Entities
  
Note 17
 
     
Commitments, Contingencies and Guarantees
  
Note 18
 
     
Shareholders’ Equity
  
Note 19
 
     
Regulation and Capital Adequacy
  
Note 20
 
     
Earnings Per Common Share
  
Note 21
 
     
Transactions with Affiliated Funds
  
Note 22
 
     
Interest Income and Interest Expense
  
Note 23
 
     
Income Taxes
  
Note 24
 
     
Business Segments
  
Note 25
 
     
Credit Concentrations
  
Note 26
 
     
Legal Proceedings
  
Note 27
 
 
 
Consolidation
The firm consolidates entities in which the firm has a controlling financial interest. The firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (VIE).
Voting Interest Entities.
Voting interest entities are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently and (ii) the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the firm has a controlling majority voting interest in a voting interest entity, the entity is consolidated.
Variable Interest Entities.
A VIE is an entity that lacks one or more of the characteristics of a voting interest entity. The firm has a controlling financial interest in a VIE when the firm has a variable interest or interests that provide it with (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. See Note 17 for further information about VIEs.
Equity-Method Investments.
When the firm does not have a controlling financial interest in an entity but can exert significant influence over the entity’s operating and financial policies, the investment is generally accounted for at fair value by electing the fair value option available under U.S. GAAP. Significant influence generally exists when the firm owns 20% to 50% of the entity’s common stock or
in-substance
common stock.
In certain cases, the firm applies the equity method of accounting to new investments that are strategic in nature or closely related to the firm’s principal business activities, when the firm has a significant degree of involvement in the cash flows or operations of the investee or when cost-benefit considerations are less significant. See Note 8 for further information about equity-method investments.
   
Goldman Sachs March 2020 Form 10-Q
 
6
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Investment Funds.
The firm has formed investment funds with third-party investors. These funds are typically organized as limited partnerships or limited liability companies for which the firm acts as general partner or manager. Generally, the firm does not hold a majority of the economic interests in these funds. These funds are usually voting interest entities and generally are not consolidated because third-party investors typically have rights to terminate the funds or to remove the firm as general partner or manager. Investments in these funds are generally measured at net asset value (NAV) and are included in investments. See Notes 8, 18 and 22 for further information about investments in funds.
Use of Estimates
Preparation of these consolidated financial statements requires management to make certain estimates and assumptions, the most important of which relate to fair value measurements, the allowance for credit losses on loans and lending commitments accounted for at amortized cost, discretionary compensation accruals, accounting for goodwill and identifiable intangible assets, provisions for losses that may arise from litigation and regulatory proceedings (including governmental investigations), and provisions for losses that may arise from tax audits. These estimates and assumptions are based on the best available information but actual results could be materially different.
Revenue Recognition
Financial Assets and Liabilities at Fair Value.
Trading assets and liabilities and certain investments are recorded at fair value either under the fair value option or in accordance with other U.S. GAAP. In addition, the firm has elected to account for certain of its loans and other financial assets and liabilities at fair value by electing the fair value option. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. Fair value gains or losses are generally included in market making or other principal transactions. See Note 4 for further information about fair value measurements.
Revenue from Contracts with Clients.
The firm recognizes revenue earned from contracts with clients for services, such as investment banking, investment management, and execution and clearing (contracts with clients)
,
when the performance obligations related to the underlying transaction are completed.
Revenues from these contracts with clients represent approximately 55% of total
non-interest
 
revenues (including approximately
85
% of investment banking revenues, approximately
95
% of investment management revenues and all commissions and fees) for the three months ended March 2020, and approximately
50
% of total
non-interest
revenues (including approximately
90
% of investment banking revenues, approximately
95
% of investment management revenues and all commissions and fees) for the three months ended March 2019. See Note 25 for information about net revenues by business segment.
Investment Banking
Advisory.
Fees from financial advisory assignments are recognized in revenues when the services related to the underlying transaction are completed under the terms of the assignment.
Non-refundable
deposits and milestone payments in connection with financial advisory assignments are recognized in revenues upon completion of the underlying transaction or when the assignment is otherwise concluded.
Expenses associated with financial advisory assignments are recognized when incurred and are included in other expenses. Client reimbursements for such expenses are included in investment banking revenues.
Underwriting.
Fees from underwriting assignments are recognized in revenues upon completion of the underlying transaction based on the terms of the assignment.
Expenses associated with underwriting assignments are generally deferred until the related revenue is recognized or the assignment is otherwise concluded. Such expenses are included in other expenses.
   
7
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Investment Management
The firm earns management fees and incentive fees for investment management services, which are included in investment management revenues. The firm makes payments to brokers and advisors related to the placement of the firm’s investment funds (distribution fees), which are included in brokerage, clearing, exchange and distribution fees.
Management Fees.
Management fees for mutual funds are calculated as a percentage of daily net asset value and are received monthly. Management fees for hedge funds and separately managed accounts are calculated as a percentage of
month-end
net asset value and are generally received quarterly. Management fees for private equity funds are calculated as a percentage of monthly invested capital or committed capital and are received quarterly, semi-annually or annually, depending on the fund. Management fees are recognized over time in the period the services are provided.
Distribution fees paid by the firm are calculated based on either a percentage of the management fee, the investment fund’s net asset value or the committed capital. Such fees are included in brokerage, clearing, exchange and distribution fees.
Incentive Fees.
Incentive fees are calculated as a percentage of a fund’s or separately managed account’s return, or excess return above a specified benchmark or other performance target. Incentive fees are generally based on investment performance over a twelve-month period or over the life of a fund. Fees that are based on performance over a twelve-month period are subject to adjustment prior to the end of the measurement period. For fees that are based on investment performance over the life of the fund, future investment underperformance may require fees previously distributed to the firm to be returned to the fund.
Incentive fees earned from a fund or separately managed account are recognized when it is probable that a significant reversal of such fees will not occur, which is generally when such fees are no longer subject to fluctuations in the market value of investments held by the fund or separately managed account. Therefore, incentive fees recognized during the period may relate to performance obligations satisfied in previous periods.
Commissions and Fees
The firm earns commissions and fees from executing and clearing client transactions on stock, options and futures markets, as well as
over-the-counter
(OTC) transactions. Commissions and fees are recognized on the day the trade is executed. The firm also provides third-party research services to clients in connection with certain soft-dollar arrangements. Third-party research costs incurred by the firm in connection with such arrangements are presented net within commissions and fees.
Remaining Performance Obligations
Remaining performance obligations are services that the firm has committed to perform in the future in connection with its contracts with clients. The firm’s remaining performance obligations are generally related to its financial advisory assignments and certain investment management activities. Revenues associated with remaining performance obligations relating to financial advisory assignments cannot be determined until the outcome of the transaction. For the firm’s investment management activities, where fees are calculated based on the net asset value of the fund or separately managed account, future revenues associated with such remaining performance obligations cannot be determined as such fees are subject to fluctuations in the market value of investments held by the fund or separately managed account.
The firm is able to determine the future revenues associated with management fees calculated based on committed capital. As of March 2020, substantially all future net revenues associated with such remaining performance obligations will be recognized through 202
7
. Annual revenues associated with such performance obligations average less than $250 million through 202
7
.
Transfers of Financial Assets
Transfers of financial assets are accounted for as sales when the firm has relinquished control over the assets transferred. For transfers of financial assets accounted for as sales, any gains or losses are recognized in net revenues. Assets or liabilities that arise from the firm’s continuing involvement with transferred financial assets are initially recognized at fair value. For transfers of financial assets that are not accounted for as sales, the assets are generally included in trading assets and the transfer is accounted for as a collateralized financing, with the related interest expense recognized over the life of the transaction. See Note 11 for further information about transfers of financial assets accounted for as collateralized financings and Note 16 for further information about transfers of financial assets accounted for as sales.
   
Goldman Sachs March 2020 Form 10-Q
 
8
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Cash and Cash Equivalents
The firm defines cash equivalents as highly liquid overnight deposits held in the ordinary course of business. Cash and cash equivalents included cash and due from banks of $11.70 billion as of March 2020 and $12.57 billion as of December 2019. Cash and cash equivalents also included interest-bearing deposits with banks of $93.79 billion as of March 2020 and $120.98 billion as of December 2019.
The firm segregates cash for regulatory and other purposes related to client activity. Cash and cash equivalents segregated for regulatory and other purposes were $28.93 billion as of March 2020 and $22.78 billion as of December 2019. In addition, the firm segregates securities for regulatory and other purposes related to client activity. See Note 11 for further information about segregated securities.
Customer and Other Receivables
Customer and other receivables included receivables from customers and counterparties of $72.63 billion as of March 2020 and $50.90 billion as of December 2019, and receivables from brokers, dealers and clearing organizations of $48.30 billion as of March 2020 and $23.71 billion as of December 2019. Such receivables primarily consist of customer margin loans, receivables resulting from unsettled transactions and collateral posted in connection with certain derivative transactions.
Substantially all of these receivables are accounted for at amortized cost net of any allowance for credit losses, which generally approximates fair value. As these receivables are not accounted for at fair value, they are not included in the firm’s fair value hierarchy in Notes 4 through 10. Had these receivables been included in the firm’s fair value hierarchy, substantially all would have been classified in level 2 as of both March 2020 and December 2019. See Note 10 for further information about customer and other receivables accounted for at fair value under the fair value option. Interest on customer and other receivables is recognized over the life of the transaction and included in interest income.
Customer and other receivables includes receivables from contracts with clients and contract assets. Contract assets represent the firm’s right to receive consideration for services provided in connection with its contracts with clients for which collection is conditional and not merely subject to the passage of time. The firm’s receivables from contracts with clients were $2.31 billion as of March 2020 and $2.27 billion as of December 2019. As of both March 2020 and December 2019 contract assets were not material.
Customer and Other Payables
Customer and other payables included payables to customers and counterparties of $201.68 billion as of March 2020 and $170.21 billion as of December 2019, and payables to brokers, dealers and clearing organizations of $11.50 billion as of March 2020 and $4.61 billion as of December 2019. Such payables primarily consist of customer credit balances related to the firm’s prime brokerage activities. Customer and other payables are accounted for at cost plus accrued interest, which generally approximates fair value. As these payables are not accounted for at fair value, they are not included in the firm’s fair value hierarchy in Notes 4 through 10. Had these payables been included in the firm’s fair value hierarchy, substantially all would have been classified in level 2 as of both March 2020 and December 2019. Interest on customer and other payables is recognized over the life of the transaction and included in interest expense.
Offsetting Assets and Liabilities
To reduce credit exposures on derivatives and securities financing transactions, the firm may enter into master netting agreements or similar arrangements (collectively, netting agreements) with counterparties that permit it to offset receivables and payables with such counterparties. A netting agreement is a contract with a counterparty that permits net settlement of multiple transactions with that counterparty, including upon the exercise of termination rights by a
non-defaulting
party. Upon exercise of such termination rights, all transactions governed by the netting agreement are terminated and a net settlement amount is calculated. In addition, the firm receives and posts cash and securities collateral with respect to its derivatives and securities financing transactions, subject to the terms of the related credit support agreements or similar arrangements (collectively, credit support agreements). An enforceable credit support agreement grants the
non-defaulting
party exercising termination rights the right to liquidate the collateral and apply the proceeds to any amounts owed. In order to assess enforceability of the firm’s right of setoff under netting and credit support agreements, the firm evaluates various factors, including applicable bankruptcy laws, local statutes and regulatory provisions in the jurisdiction of the parties to the agreement.
9
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Derivatives are reported on a
net-by-counterparty
basis (i.e., the net payable or receivable for derivative assets and liabilities for a given counterparty) in the consolidated balance sheets when a legal right of setoff exists under an enforceable netting agreement. Securities purchased under agreements to resell (resale agreements) and securities sold under agreements to repurchase (repurchase agreements) and securities borrowed and loaned transactions with the same term and currency are presented on a
net-by-counterparty
basis in the consolidated balance sheets when such transactions meet certain settlement criteria and are subject to netting agreements.
In the consolidated balance sheets, derivatives are reported net of cash collateral received and posted under enforceable credit support agreements, when transacted under an enforceable netting agreement. In the consolidated balance sheets, resale and repurchase agreements, and securities borrowed and loaned, are not reported net of the related cash and securities received or posted as collateral. See Note 11 for further information about collateral received and pledged, including rights to deliver or repledge collateral. See Notes 7 and 11 for further information about offsetting assets and liabilities.
Share-based Compensation
The cost of employee services received in exchange for a share-based award is generally measured based on the grant-date fair value of the award. Share-based awards that do not require future service (i.e., vested awards, including awards granted to retirement-eligible employees) are expensed immediately. Share-based awards that require future service are amortized over the relevant service period. Forfeitures are recorded when they occur.
Cash dividend equivalents paid on outstanding restricted stock units (RSUs) are charged to retained earnings. If RSUs that require future service are forfeited, the related dividend equivalents originally charged to retained earnings are reclassified to compensation expense in the period in which forfeiture occurs.
The firm generally issues new shares of common stock upon delivery of share-based awards. In certain cases, primarily related to conflicted employment (as outlined in the applicable award agreements), the firm may cash settle share-based compensation awards accounted for as equity instruments. For these awards, whose terms allow for cash settlement, additional
paid-in
capital is adjusted to the extent of the difference between the value of the award at the time of cash settlement and the grant-date value of the award. The tax effect related to the settlement of share-based awards is recorded in income tax benefit or expense.
Foreign Currency Translation
Assets and liabilities denominated in
non-U.S.
currencies are translated at rates of exchange prevailing on the date of the consolidated balance sheets and revenues and expenses are translated at average rates of exchange for the period. Foreign currency remeasurement gains or losses on transactions in nonfunctional currencies are recognized in earnings. Gains or losses on translation of the financial statements of a
non-U.S.
operation, when the functional currency is other than the U.S. dollar, are included, net of hedges and taxes, in the consolidated statements of comprehensive income.
Recent Accounting Developments​​​​​​​
Leases (ASC 842).
In February 2016, the FASB issued ASU No.
 2016-02,
“Leases (Topic 842).” This ASU requires that, for leases longer than one year, a lessee recognize in the balance sheet a
right-of-use
asset, representing the right to use the underlying asset for the lease term, and a lease liability, representing the liability to make lease payments. It also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the
right-of-use
asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. It also requires that for qualifying sale-leaseback transactions the seller recognize any gain or loss (based on the estimated fair value of the asset at the time of sale) when control of the asset is transferred instead of amortizing it over the lease period. In addition, this ASU requires expanded disclosures about the nature and terms of lease agreements.
The firm adopted this ASU in January 2019 under a modified retrospective approach. Upon adoption, in accordance with the ASU, the firm elected to not reassess the lease classification or initial direct costs of existing leases, and to not reassess whether existing contracts contain a lease. In addition, the firm has elected to account for each contract’s lease and
non-lease
components as a single lease component. The impact of adoption was a gross up of $1.77 billion on the firm’s consolidated balance sheet and an increase to retained earnings of $12 million (net of tax) as of January 1, 2019.
Goldman Sachs March 2020 Form 10-Q
 
10
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Measurement of Credit Losses on Financial Instruments (ASC 326).
In June 2016, the FASB issued ASU No.
 2016-13,
“Financial Instruments — Credit Losses (Topic 326) — Measurement of Credit Losses on Financial Instruments.” This ASU amends several aspects of the measurement of credit losses on certain financial instruments, including replacing the existing incurred credit loss model and other models with the Current Expected Credit Losses (CECL) model and amending certain aspects of accounting for purchased financial assets with deterioration in credit quality since origination.
The firm adopted this ASU in January 2020 under a modified retrospective approach. As a result of adopting this ASU, the firm’s allowance for credit losses on financial assets and commitments that are measured at amortized cost reflects management’s estimate of credit losses over the remaining expected life of such assets. Expected credit losses for newly recognized financial assets and commitments, as well as changes to expected credit losses during the period, are recognized in earnings. These expected credit losses are measured based on historical experience, current conditions and forecasts that affect the collectability of the reported amount.
The cumulative effect of measuring the allowance under CECL as a result of adopting this ASU as of January 1, 2020 was an increase in the allowance for credit losses of $848 million. The increase in the allowance is driven by the fact that the allowance under CECL covers expected credit losses over the full expected life of the loan portfolios and also takes into account forecasts of expected future economic conditions. In addition, in accordance with the ASU, the firm elected the fair value option for loans that were previously accounted for as Purchased Credit Impaired (PCI), which resulted in a decrease to the allowance for PCI loans of $169 million. The cumulative effect of adopting this ASU was a decrease to retained earnings of $638 million (net of tax).
Facilitation of the Effects of
Reference Rate Reform on Financial Reporting
(ASC 848).
In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform — Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform. The firm adopted this ASU in March 2020 and adoption did not have a material impact on the firm’s consolidated financial statements.
Note 4.
Fair Value Measurements
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. The firm measures certain financial assets and liabilities as a portfolio (i.e., based on its net exposure to market and/or credit risks).
The best evidence of fair value is a quoted price in an active market. If quoted prices in active markets are not available, fair value is determined by reference to prices for similar instruments, quoted prices or recent transactions in less active markets, or internally developed models that primarily use market-based or independently sourced inputs, including, but not limited to, interest rates, volatilities, equity or debt prices, foreign exchange rates, commodity prices, credit spreads and funding spreads (i.e., the spread or difference between the interest rate at which a borrower could finance a given financial instrument relative to a benchmark interest rate).
U.S. GAAP has a three-level hierarchy for disclosure of fair value measurements. This hierarchy prioritizes inputs to the valuation techniques used to measure fair value, giving the highest priority to level 1 inputs and the lowest priority to level 3 inputs. A financial instrument’s level in this hierarchy is based on the lowest level of input that is significant to its fair value measurement. In evaluating the significance of a valuation input, the firm considers, among other factors, a portfolio’s net risk exposure to that input. The fair value hierarchy is as follows:
Level 1.
Inputs are unadjusted quoted prices in active markets to which the firm had access at the measurement date for identical, unrestricted assets or liabilities.
Level 2.
Inputs to valuation techniques are observable, either directly or indirectly.
Level 3.
One or more inputs to valuation techniques are significant and unobservable.
The fair values for substantially all of the firm’s financial assets and liabilities are based on observable prices and inputs and are classified in levels 1 and 2 of the fair value hierarchy. Certain level 2 and level 3 financial assets and liabilities may require valuation adjustments that a market participant would require to arrive at fair value for factors, such as counterparty and the firm’s credit quality, funding risk, transfer restrictions, liquidity and bid/offer spreads. Valuation adjustments are generally based on market evidence.
   
11
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The valuation techniques and nature of significant inputs used to determine the fair value of the firm’s financial instruments are described below. See Notes 5 through 10 for further information about significant unobservable inputs used to value level 3 financial instruments.
Valuation Techniques and Significant Inputs for Trading Cash Instruments, Investments and Loans
Level 1.
Level 1 instruments include U.S. government obligations, most
non-U.S.
government obligations, certain agency obligations, certain corporate debt instruments, certain money market instruments and actively traded listed equities. These instruments are valued using quoted prices for identical unrestricted instruments in active markets. The firm defines active markets for equity instruments based on the average daily trading volume both in absolute terms and relative to the market capitalization for the instrument. The firm defines active markets for debt instruments based on both the average daily trading volume and the number of days with trading activity.
Level 2.
Level 2 instruments include certain
non-U.S.
government obligations, most agency obligations, most mortgage-backed loans and securities, most corporate debt instruments, most state and municipal obligations, most money market instruments, most other debt obligations, restricted or less liquid listed equities, certain private equities, commodities and certain lending commitments.
Valuations of level 2 instruments can be verified to quoted prices, recent trading activity for identical or similar instruments, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. Consideration is given to the nature of the quotations (e.g., indicative or firm) and the relationship of recent market activity to the prices provided from alternative pricing sources.
Valuation adjustments are typically made to level 2 instruments (i) if the instrument is subject to transfer restrictions and/or (ii) for other premiums and liquidity discounts that a market participant would require to arrive at fair value. Valuation adjustments are generally based on market evidence.
Level 3.
Level 3 instruments have one or more significant valuation inputs that are not observable. Absent evidence to the contrary, level 3 instruments are initially valued at transaction price, which is considered to be the best initial estimate of fair value. Subsequently, the firm uses other methodologies to determine fair value, which vary based on the type of instrument. Valuation inputs and assumptions are changed when corroborated by substantive observable evidence, including values realized on sales.
Valuation techniques of level 3 instruments vary by instrument, but are generally based on discounted cash flow techniques. The valuation techniques and the nature of significant inputs used to determine the fair values of each type of level 3 instrument are described below:
Loans and Securities Backed by Commercial Real Estate
Loans and securities backed by commercial real estate are directly or indirectly collateralized by a single property or a portfolio of properties, and may include tranches of varying levels of subordination. Significant inputs are generally determined based on relative value analyses and include:
 
•
Market yields implied by transactions of similar or related assets and/or current levels and changes in market indices, such as the CMBX (an index that tracks the performance of commercial mortgage bonds);
 
 
•
Transaction prices in both the underlying collateral and instruments with the same or similar underlying collateral;
 
 
•
A measure of expected future cash flows in a default scenario (recovery rates) implied by the value of the underlying collateral, which is mainly driven by current performance of the underlying collateral and capitalization rates. Recovery rates are expressed as a percentage of notional or face value of the instrument and reflect the benefit of credit enhancements on certain instruments; and
 
 
•
Timing of expected future cash flows (duration) which, in certain cases, may incorporate the impact of other unobservable inputs (e.g., prepayment speeds).
 
Loans and Securities Backed by Residential Real Estate
Loans and securities backed by residential real estate are directly or indirectly collateralized by portfolios of residential real estate and may include tranches of varying levels of subordination. Significant inputs are generally determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles. Significant inputs include:
 
•
Market yields implied by transactions of similar or related assets;
 
 
•
Transaction prices in both the underlying collateral and instruments with the same or similar underlying collateral;
 
 
•
Cumulative loss expectations, driven by default rates, home price projections, residential property liquidation timelines, related costs and subsequent recoveries; and
 
 
•
Duration, driven by underlying loan prepayment speeds and residential property liquidation timelines.
 
   
Goldman Sachs March 2020 Form 10-Q
 
12
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Corporate Debt Instruments
Corporate debt instruments includes corporate loans, debt securities and convertible debentures. Significant inputs for corporate debt instruments are generally determined based on relative value analyses, which incorporate comparisons both to prices of credit default swaps that reference the same or similar underlying instrument or entity and to other debt instruments for the same or similar issuer for which observable prices or broker quotations are available. Significant inputs include:
 
•
Market yields implied by transactions of similar or related assets and/or current levels and trends of market indices, such as the CDX (an index that tracks the performance of corporate credit);
 
 
 
•
Current performance and recovery assumptions and, where the firm uses credit default swaps to value the related instrument, the cost of borrowing the underlying reference obligation;
 
 
 
•
Duration; and
 
 
 
•
Market and transaction multiples for corporate debt instruments with convertibility or participation options.
 
 
Equity Securities
Equity securities consists of private equities. Recent third-party completed or pending transactions (e.g., merger proposals, debt restructurings, tender offers) are considered the best evidence for any change in fair value. When these are not available, the following valuation methodologies are used, as appropriate:
 
•
Industry multiples (primarily EBITDA and revenue multiples) and public comparables;
 
 
 
•
Transactions in similar instruments;
 
 
 
•
Discounted cash flow techniques; and
 
 
 
•
Third-party appraisals.
 
 
The firm also considers changes in the outlook for the relevant industry and financial performance of the issuer as compared to projected performance. Significant inputs include:
 
•
Market and transaction multiples;
 
 
 
•
Discount rates and capitalization rates; and
 
 
 
•
For equity securities with debt-like features, market yields implied by transactions of similar or related assets, current performance and recovery assumptions, and duration.
 
 
Other Trading Cash Instruments, Investments and Loans
The significant inputs to the valuation of other instruments, such as U.S. and
non-U.S.
government and agency obligations, state and municipal obligations, and other loans and debt obligations are generally determined based on relative value analyses, which incorporate comparisons both to prices of credit default swaps that reference the same or similar underlying instrument or entity and to other debt instruments for the same issuer for which observable prices or broker quotations are available. Significant inputs include:
 
•
Market yields implied by transactions of similar or related assets and/or current levels and trends of market indices;
 
 
 
•
Current performance and recovery assumptions and, where the firm uses credit default swaps to value the related instrument, the cost of borrowing the underlying reference obligation; and
 
 
 
•
Duration.
 
 
Valuation Techniques and Significant Inputs for Derivatives
The firm’s level 2 and level 3 derivatives are valued using derivative pricing models (e.g., discounted cash flow models, correlation models and models that incorporate option pricing methodologies, such as Monte Carlo simulations). Price transparency of derivatives can generally be characterized by product type, as described below.
 
•
Interest Rate.
In general, the key inputs used to value interest rate derivatives are transparent, even for most long-dated contracts. Interest rate swaps and options denominated in the currencies of leading industrialized nations are characterized by high trading volumes and tight bid/offer spreads. Interest rate derivatives that reference indices, such as an inflation index, or the shape of the yield curve (e.g.,
10-year
swap rate vs.
2-year
swap rate) are more complex, but the key inputs are generally observable.
 
 
 
•
Credit.
Price transparency for credit default swaps, including both single names and baskets of credits, varies by market and underlying reference entity or obligation. Credit default swaps that reference indices, large corporates and major sovereigns generally exhibit the most price transparency. For credit default swaps with other underliers, price transparency varies based on credit rating, the cost of borrowing the underlying reference obligations, and the availability of the underlying reference obligations for delivery upon the default of the issuer. Credit default swaps that reference loans, asset-backed securities and emerging market debt instruments tend to have less price transparency than those that reference corporate bonds. In addition, more complex credit derivatives, such as those sensitive to the correlation between two or more underlying reference obligations, generally have less price transparency.
 
 
   
13
 
Goldman Sachs March 2020 Form 10-Q
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
•
Currency.
Prices for currency derivatives based on the exchange rates of leading industrialized nations, including those with longer tenors, are generally transparent. The primary difference between the price transparency of developed and emerging market currency derivatives is that emerging markets tend to be only observable for contracts with shorter tenors.
 
 
 
•
Commodity.
Commodity derivatives include transactions referenced to energy (e.g., oil and natural gas), metals (e.g., precious and base) and soft commodities (e.g., agricultural). Price transparency varies based on the underlying commodity, delivery location, tenor and product quality (e.g., diesel fuel compared to unleaded gasoline). In general, price transparency for commodity derivatives is greater for contracts with shorter tenors and contracts that are more closely aligned with major and/or benchmark commodity indices.
 
 
 
•
Equity.
Price transparency for equity derivatives varies by market and underlier. Options on indices and the common stock of corporates included in major equity indices exhibit the most price transparency. Equity derivatives generally have observable market prices, except for contracts with long tenors or reference prices that differ significantly from current market prices. More complex equity derivatives, such as those sensitive to the correlation between two or more individual stocks, generally have less price transparency.
 
 
Liquidity is essential to observability of all product types. If transaction volumes decline, previously transparent prices and other inputs may become unobservable. Conversely, even highly structured products may at times have trading volumes large enough to provide observability of prices and other inputs.
Level 1.
Level 1 derivatives include short-term contracts for future delivery of securities when the underlying security is a level 1 instrument, and exchange-traded derivatives if they are actively traded and are valued at their quoted market price.
Level 2.
Level 2 derivatives include OTC derivatives for which all significant valuation inputs are corroborated by market evidence and exchange-traded derivatives that are not actively traded and/or that are valued using models that calibrate to market-clearing levels of OTC derivatives.
The selection of a particular model to value a derivative depends on the contractual terms of and specific risks inherent in the instrument, as well as the availability of pricing information in the market. For derivatives that trade in liquid markets, model selection does not involve significant management judgment because outputs of models can be calibrated to market-clearing levels.
Valuation models require a variety of inputs, such as contractual terms, market prices, yield curves, discount rates (including those derived from interest rates on collateral received and posted as specified in credit support agreements for collateralized derivatives), credit curves, measures of volatility, prepayment rates, loss severity rates and correlations of such inputs. Significant inputs to the valuations of level 2 derivatives can be verified to market transactions, broker or dealer quotations or other alternative pricing sources with reasonable levels of price transparency. Consideration is given to the nature of the quotations (e.g., indicative or firm) and the relationship of recent market activity to the prices provided from alternative pricing sources.
Level 3.
Level 3 derivatives are valued using models which utilize observable level 1 and/or level 2 inputs, as well as unobservable level 3 inputs. The significant unobservable inputs used to value the firm’s level 3 derivatives are described below.
 
•
For level 3 interest rate and currency derivatives, significant unobservable inputs include correlations of certain currencies and interest rates (e.g., the correlation between Euro inflation and Euro interest rates). In addition, for level 3 interest rate derivatives, significant unobservable inputs include specific interest rate volatilities.
 
 
 
•
For level 3 credit derivatives, significant unobservable inputs include illiquid credit spreads and upfront credit points, which are unique to specific reference obligations and reference entities, recovery rates and certain correlations required to value credit derivatives (e.g., the likelihood of default of the underlying reference obligation relative to one another).
 
 
 
•
For level 3 commodity derivatives, significant unobservable inputs include volatilities for options with strike prices that differ significantly from current market prices and prices or spreads for certain products for which the product quality or physical location of the commodity is not aligned with benchmark indices.
 
 
 
•
For level 3 equity derivatives, significant unobservable inputs generally include equity volatility inputs for options that are long-dated and/or have strike prices that differ significantly from current market prices. In addition, the valuation of certain structured trades requires the use of level 3 correlation inputs, such as the correlation of the price performance of two or more individual stocks or the correlation of the price performance for a basket of stocks to another asset class, such as commodities.
 
 
   
Goldman Sachs March 2020 Form 10-Q
 
14
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Subsequent to the initial valuation of a level 3 derivative, the firm updates the level 1 and level 2 inputs to reflect observable market changes and any resulting gains and losses are classified in level 3. Level 3 inputs are changed when corroborated by evidence, such as similar market transactions, third-party pricing services and/or broker or dealer quotations or other empirical market data. In circumstances where the firm cannot verify the model value by reference to market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. See Note 7 for further information about significant unobservable inputs used in the valuation of level 3 derivatives.
Valuation Adjustments.
Valuation adjustments are integral to determining the fair value of derivative portfolios and are used to adjust the
mid-market
valuations produced by derivative pricing models to the exit price valuation. These adjustments incorporate bid/offer spreads, the cost of liquidity, credit valuation adjustments and funding valuation adjustments, which account for the credit and funding risk inherent in the uncollateralized portion of derivative portfolios. The firm also makes funding valuation adjustments to collateralized derivatives where the terms of the agreement do not permit the firm to deliver or repledge collateral received. Market-based inputs are generally used when calibrating valuation adjustments to market-clearing levels.
In addition, for derivatives that include significant unobservable inputs, the firm makes model or exit price adjustments to account for the valuation uncertainty present in the transaction.
Valuation Techniques and Significant Inputs for Other Financial Instruments at Fair Value
In addition to trading cash instruments, derivatives, and certain investments and loans, the firm accounts for certain of its other financial assets and liabilities at fair value under the fair value option. Such instruments include repurchase agreements and substantially all resale agreements; securities borrowed and loaned in Fixed Income, Currency and Commodities (FICC) financing; certain customer and other receivables, including certain margin loans; certain time deposits, including structured certificates of deposit, which are hybrid financial instruments; substantially all other secured financings, including transfers of assets accounted for as financings and collateralized central bank financings; certain unsecured short- and long-term borrowings, substantially all of which are hybrid financial instruments; and other liabilities. These instruments are generally valued based on discounted cash flow techniques, which incorporate inputs with reasonable levels of price transparency, and are generally classified in level 2 because the inputs are observable. Valuation adjustments may be made for liquidity and for counterparty and the firm’s credit quality. The significant inputs used to value the firm’s other financial instruments are described below.
Resale and Repurchase Agreements and Securities Borrowed and Loaned.
The significant inputs to the valuation of resale and repurchase agreements and securities borrowed and loaned are funding spreads, the amount and timing of expected future cash flows and interest rates.
Customer and Other Receivables.
The significant inputs to the valuation of receivables are interest rates, the amount and timing of expected future cash flows and funding spreads.
Deposits.
The significant inputs to the valuation of time deposits are interest rates and the amount and timing of future cash flows. The inputs used to value the embedded derivative component of hybrid financial instruments are consistent with the inputs used to value the firm’s other derivative instruments described above. See Note 7 for further information about derivatives and Note 13 for further information about deposits.
Other Secured Financings.
The significant inputs to the valuation of other secured financings are the amount and timing of expected future cash flows, interest rates, funding spreads, the fair value of the collateral delivered by the firm (determined using the amount and timing of expected future cash flows, market prices, market yields and recovery assumptions) and the frequency of additional collateral calls. See Note 11 for further information about other secured financings.
Unsecured Short- and Long-Term Borrowings.
The significant inputs to the valuation of unsecured short- and long-term borrowings are the amount and timing of expected future cash flows, interest rates, the credit spreads of the firm and commodity prices for prepaid commodity transactions. The inputs used to value the embedded derivative component of hybrid financial instruments are consistent with the inputs used to value the firm’s other derivative instruments described above. See Note 7 for further information about derivatives and Note 14 for further information about borrowings.
Other Liabilities.
The significant inputs to the valuation of other liabilities are the amount and timing of expected future cash flows and equity volatility and correlation inputs. The inputs used to value the embedded derivative component of hybrid financial instruments are consistent with the inputs used to value the firm’s other derivative instruments described above. See Note 7 for further information about derivatives.
   
15
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Financial Assets and Liabilities at Fair Value
The table below presents financial assets and liabilities accounted for at fair value.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December 2019
 
Total level 1 financial assets
 
 
$  
 
217,934
 
  
$242,562
 
Total level 2 financial assets
 
 
440,469
 
  
325,259
 
Total level 3 financial assets
 
 
30,776
 
  
23,068
 
Investments in funds at NAV
 
 
3,545
 
  
4,206
 
Counterparty and cash collateral netting
 
 
(78,612
)
  
(55,527
)
Total financial assets at fair value
 
 
$  
 
614,112
 
  
$539,568
 
 
Total assets
 
 
$1,089,756
 
  
$992,968
 
 
Total level 3 financial assets divided by:
 
 
 
  
 
Total assets
 
 
2.8%
 
  
2.3%
 
Total financial assets at fair value
 
 
5.0%
 
  
4.3%
 
Total level 1 financial liabilities
 
 
$    
 
63,117
 
  
$  54,790
 
Total level 2 financial liabilities
 
 
320,820
 
  
293,902
 
Total level 3 financial liabilities
 
 
27,565
 
  
25,938
 
Counterparty and cash collateral netting
 
 
(60,796
)
  
(41,671
)
Total financial liabilities at fair value
 
 
$  
 
350,706
 
  
$332,959
 
 
Total level 3 financial liabilities divided by
total financial liabilities at fair value
 
 
7.9%
 
  
7.8%
 
 
 
 
In the table above:
 
•
Counterparty netting among positions classified in the same level is included in that level.
 
 
 
 
•
Counterparty and cash collateral netting represents the impact on derivatives of netting across levels of the fair value hierarchy.
 
 
 
The table below presents a summary of level 3 financial assets.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December 2019
 
Trading assets:
 
 
 
  
 
Trading cash instruments
 
 
$    
 
  1,234
 
  
$    1,242
 
Derivatives
 
 
7,381
 
  
4,654
 
Investments
 
 
19,408
 
  
15,282
 
Loans
 
 
2,753
 
  
1,890
 
Total
 
 
$  
 
  30,776
 
  
$  23,068
 
 
 
 
Level 3 financial assets as of March 2020 increased compared with December 2019, primarily reflecting an increase in level 3 investments. See Notes 5 through 10 for further information about level 3 financial assets (including information about unrealized gains and losses related to level 3 financial assets and transfers in and out of level 3).
Note 5.
Trading Assets and Liabilities
Trading assets and liabilities include trading cash instruments and derivatives held in connection with the firm’s market-making or risk management activities. These assets and liabilities are accounted for at fair value either under the fair value option or in accordance with other U.S. GAAP, and the related fair value gains and losses are generally recognized in the consolidated statements of earnings.
The table below presents a summary of trading assets and liabilities.
 
         
         
$ in millions
  
Trading Assets
   
Trading Liabilities
 
As of March 2020
 
 
 
  
 
Trading cash instruments
 
 
$300,900
 
 
 
$  74,319
 
Derivatives
 
 
74,571
 
 
 
62,039
 
Total
 
 
$375,471
 
 
 
$136,358
 
 
As of December 2019
 
 
 
  
 
Trading cash instruments
  
$310,080
   
$  65,033
 
Derivatives
  
45,252
   
43,802
 
Total
  
$355,332
   
$108,835
 
 
 
 
See Note 6 for further information about trading cash instruments and Note 7 for further information about derivatives.
Gains and Losses from Market Making
The table below presents market making revenues by major product type.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Interest rates
 
 
$  
 
737
 
  
$1,260
 
Credit
 
 
1,842
 
  
242
 
Currencies
 
 
(735
)
  
718
 
Equities
 
 
1,700
 
  
390
 
Commodities
 
 
138
 
  
113
 
Total
 
 
$3,682
 
  
$2,723
 
 
 
 
In the table above:
 
•
Gains/(losses) include both realized and unrealized gains and losses. Gains/(losses) exclude related interest income and interest expense. See Note 23 for further information about interest income and interest expense.
 
 
 
 
•
Gains and losses included in market making are primarily related to the firm’s trading assets and liabilities, including both derivative and
non-derivative
financial instruments.
 
 
 
 
•
Gains/(losses) are not representative of the manner in which the firm manages its business activities because many of the firm’s market-making and client facilitation strategies utilize financial instruments across various product types. Accordingly, gains or losses in one product type frequently offset gains or losses in other product types. For example, most of the firm’s longer-term derivatives across product types are sensitive to changes in interest rates and may be economically hedged with interest rate swaps. Similarly, a significant portion of the firm’s trading cash instruments and derivatives across product types has exposure to foreign currencies and may be economically hedged with foreign currency contracts.
 
 
 
   
Goldman Sachs March 2020 Form 10-Q
 
16
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 6.
Trading Cash Instruments
Trading cash instruments consists of instruments held in connection with the firm’s market-making or risk management activities. These instruments are accounted for at fair value and the related fair value gains and losses are recognized in the consolidated statements of earnings.
Fair Value of Trading Cash Instruments by Level
The table below presents trading cash instruments by level within the fair value hierarchy.
 
                 
$ in millions
  
Level 1
   
Level 2
   
Level 3
   
Total
 
As of March 2020
 
 
 
  
   
   
 
Assets
 
 
 
  
   
   
 
Government and agency obligations:
  
   
   
 
U.S.
 
 
$  89,564
 
 
 
$  49,771
 
 
 
$     11
 
 
 
$139,346
 
Non-U.S.
 
 
37,925
 
 
 
9,493
 
 
 
16
 
 
 
47,434
 
Loans and securities backed by:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
–
 
 
 
2,411
 
 
 
130
 
 
 
2,541
 
Residential real estate
 
 
–
 
 
 
6,906
 
 
 
251
 
 
 
7,157
 
Corporate debt instruments
 
 
683
 
 
 
24,804
 
 
 
719
 
 
 
26,206
 
State and municipal obligations
 
 
–
 
 
 
347
 
 
 
–
 
 
 
347
 
Other debt obligations
 
 
328
 
 
 
3,206
 
 
 
34
 
 
 
3,568
 
Equity securities
 
 
70,795
 
 
 
1,191
 
 
 
73
 
 
 
72,059
 
Commodities
 
 
–
 
 
 
2,242
 
 
 
–
 
 
 
2,242
 
Total
 
 
$199,295
 
 
 
$100,371
 
 
 
$1,234
 
 
 
$300,900
 
Liabilities
 
 
 
  
   
   
 
Government and agency obligations:
  
   
   
 
U.S.
 
 
$
 
(10,959
)
 
 
$
        
(11
)
 
 
$       –
 
 
 
$
 
(10,970
)
Non-U.S.
 
 
(23,065
)
 
 
(2,445
)
 
 
(1
)
 
 
(25,511
)
Loans and securities backed by:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
–
 
 
 
(26
)
 
 
(1
)
 
 
(27
)
Residential real estate
 
 
–
 
 
 
(2
)
 
 
–
 
 
 
(2
)
Corporate debt instruments
 
 
(7
)
 
 
(8,160
)
 
 
(177
)
 
 
(8,344
)
Other debt obligations
 
 
–
 
 
 
(5
)
 
 
–
 
 
 
(5
)
Equity securities
 
 
(29,037
)
 
 
(379
)
 
 
(15
)
 
 
(29,431
)
Commodities
 
 
–
 
 
 
(29
)
 
 
–
 
 
 
(29
)
Total
 
 
$
 
(63,068
)
 
 
$
 
(11,057
)
 
 
$
  
(194
)
 
 
$
 
(74,319
)
 
As of December 2019
  
   
   
   
 
Assets
  
   
   
   
 
Government and agency obligations:
  
   
   
 
U.S.
  
$108,200
   
$  34,714
   
$     21
   
$142,935
 
Non-U.S.
  
33,709
   
11,108
   
22
   
44,839
 
Loans and securities backed by:
  
   
   
   
 
Commercial real estate
  
–
   
2,031
   
191
   
2,222
 
Residential real estate
  
–
   
5,794
   
231
   
6,025
 
Corporate debt instruments
  
1,313
   
26,768
   
692
   
28,773
 
State and municipal obligations
  
–
   
680
   
–
   
680
 
Other debt obligations
  
409
   
1,074
   
10
   
1,493
 
Equity securities
  
78,782
   
489
   
75
   
79,346
 
Commodities
  
–
   
3,767
   
–
   
3,767
 
Total
  
$222,413
   
$  86,425
   
$1,242
   
$310,080
 
Liabilities
  
   
   
   
 
Government and agency obligations:
  
   
   
 
U.S.
  
$
  
 (9,914
)  
$
 
       (47
)  
$  
 
     –
   
$
 
  (9,961
)
Non-U.S.
  
(21,213
)  
(2,205
)  
(6
)  
(23,424
)
Loans and securities backed by:
  
   
   
   
 
Commercial real estate
  
–
   
(31
)  
(1
)  
(32
)
Residential real estate
  
–
   
(2
)  
–
   
(2
)
Corporate debt instruments
  
(115
)  
(7,494
)  
(253
)  
(7,862
)
State and Municipal obligations
  
–
   
(2
)  
–
   
(2
)
Equity securities
  
(23,519
)  
(212
)  
(13
)  
(23,744
)
Commodities
  
–
   
(6
)  
–
   
(6
)
Total
  
$
 
(54,761
)  
$
  
 (9,999
)  
$  (273
)  
$
 
(65,033
)
In the table above:
 
•
Trading cash instrument assets are shown as positive amounts and trading cash instrument liabilities are shown as negative amounts.
 
•
Corporate debt instruments includes corporate loans, debt securities, convertible debentures, prepaid commodity transactions and transfers of assets accounted for as secured loans rather than purchases.
 
•
Equity securities includes public equities and exchange-traded funds.
 
•
Other debt obligations includes other asset-backed securities and money market instruments.
See Note 4 for an overview of the firm’s fair value measurement policies and the valuation techniques and significant inputs used to determine the fair value of trading cash instruments.
Significant Unobservable Inputs
The table below presents the amount of level 3 assets, and ranges and weighted averages of significant unobservable inputs used to value level 3 trading cash instruments.
 
    
 
Level 3 Assets and Range of Significant
Unobservable Inputs (Weighted Average) as of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Loans and securities backed by commercial real estate
 
Level 3 assets
 
 
$130
 
  
$191
 
Yield
 
 
4.3% to 22.0% (15.5%
)
  
2.7% to 21.7% (13.5%
)
Recovery rate
 
 
7.0% to 88.0% (59.9%
)
  
11.4% to 81.1% (55.6%
)
Duration (years)
 
 
1.0 to 6.0 (3.3
)
  
0.3 to 6.6 (2.8
)
Loans and securities backed by residential real estate
 
Level 3 assets
 
 
$251
 
  
$231
 
Yield
 
 
1.4% to 9.2% (4.4%
)
  
1.2% to 12.0% (5.8%
)
Cumulative loss rate
 
 
4.0% to 33.0% (16.0%
)
  
5.4% to 30.4% (16.3%
)
Duration (years)
 
 
2.1 to 14.3 (8.3
)
  
2.3 to 12.4 (5.7
)
Corporate debt instruments
 
Level 3 assets
 
 
$719
 
  
$692
 
Yield
 
 
2.3% to 46.8% (15.6%
)
  
0.1% to 20.4% (7.2%
)
Recovery rate
 
 
0.0% to 70.0% (55.8%
)
  
0.0% to 69.7% (54.9%
)
Duration (years)
 
 
1.3 to 5.6 (3.4
)
  
1.7 to 16.6 (5.1
)
Level 3 government and agency obligations, other debt obligations and equity securities were not material as of both March 2020 and December 2019, and therefore are not included in the table above.
17
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
In the table above:
 
•
Ranges represent the significant unobservable inputs that were used in the valuation of each type of trading cash instrument.
 
•
Weighted averages are calculated by weighting each input by the relative fair value of the trading cash instruments.
 
•
The ranges and weighted averages of these inputs are not representative of the appropriate inputs to use when calculating the fair value of any one trading cash instrument. For example, the highest recovery rate for corporate debt instruments is appropriate for valuing a specific corporate debt instrument, but may not be appropriate for valuing any other corporate debt instrument. Accordingly, the ranges of inputs do not represent uncertainty in, or possible ranges of, fair value measurements of level 3 trading cash instruments.
 
•
Increases in yield, duration or cumulative loss rate used in the valuation of level 3 trading cash instruments would have resulted in a lower fair value measurement, while increases in recovery rate would have resulted in a higher fair value measurement as of both March 2020 and December 2019. Due to the distinctive nature of each level 3 trading cash instrument, the interrelationship of inputs is not necessarily uniform within each product type.
 
•
Trading cash instruments are valued using discounted cash flows.
Level 3 Rollforward
The table below presents a summary of the changes in fair value for level 3 trading cash instruments.
 
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Total trading cash instrument assets
 
 
 
  
 
Beginning balance
 
 
$1,242
 
  
$1,689
 
Net realized gains/(losses)
 
 
34
 
  
25
 
Net unrealized gains/(losses)
 
 
(159
)
  
(11
)
Purchases
 
 
353
 
  
111
 
Sales
 
 
(268
)
  
(289
)
Settlements
 
 
(153
)
  
(83
)
Transfers into level 3
 
 
342
 
  
341
 
Transfers out of level 3
 
 
(157
)
  
(193
)
Ending balance
 
 
$1,234
 
  
$1,590
 
Total trading cash instrument liabilities
 
 
 
  
 
Beginning balance
 
 
$  (273
)
  
$    (49
)
Net realized gains/(losses)
 
 
–
 
  
–
 
Net unrealized gains/(losses)
 
 
91
 
  
(63
)
Purchases
 
 
26
 
  
18
 
Sales
 
 
(32
)
  
(52
)
Settlements
 
 
(2
)
  
8
 
Transfers into level 3
 
 
(13
)
  
(24
)
Transfers out of level 3
 
 
9
 
  
3
 
Ending balance
 
 
$  (194
)
  
$  (159
)
In the table above:
 
•
Changes in fair value are presented for all trading cash instruments that are classified in level 3 as of the end of the period.
 
•
Net unrealized gains/(losses) relates to trading cash instruments that were still held at
period-end.
 
•
Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. If a trading cash instrument was transferred to level 3 during a reporting period, its entire gain or loss for the period is classified in level 3.
 
•
For level 3 trading cash instrument assets, increases are shown as positive amounts, while decreases are shown as negative amounts. For level 3 trading cash instrument liabilities, increases are shown as negative amounts, while decreases are shown as positive amounts.
 
•
Level 3 trading cash instruments are frequently economically hedged with level 1 and level 2 trading cash instruments and/or level 1, level 2 or level 3 derivatives. Accordingly, gains or losses that are classified in level 3 can be partially offset by gains or losses attributable to level 1 or level 2 trading cash instruments and/or level 1, level 2 or level 3 derivatives. As a result, gains or losses included in the level 3 rollforward below do not necessarily represent the overall impact on the firm’s results of operations, liquidity or capital resources.
Goldman Sachs March 2020 Form 10-Q
 
18
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents information, by product type, for assets included in the summary table above.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Loans and securities backed by commercial real estate
  
 
Beginning balance
 
 
$ 191
 
  
$ 332
 
Net realized gains/(losses)
 
 
9
 
  
7
 
Net unrealized gains/(losses)
 
 
(22
)
  
(6
)
Purchases
 
 
14
 
  
12
 
Sales
 
 
(6
)
  
(29
)
Settlements
 
 
(50
)
  
(21
)
Transfers into level 3
 
 
7
 
  
89
 
Transfers out of level 3
 
 
(13
)
  
(13
)
Ending balance
 
 
$ 130
 
  
$ 371
 
Loans and securities backed by residential real estate
  
 
Beginning balance
 
 
$ 231
 
  
$ 348
 
Net realized gains/(losses)
 
 
1
 
  
3
 
Net unrealized gains/(losses)
 
 
7
 
  
7
 
Purchases
 
 
80
 
  
18
 
Sales
 
 
(23
)
  
(110
)
Settlements
 
 
(13
)
  
(11
)
Transfers into level 3
 
 
61
 
  
22
 
Transfers out of level 3
 
 
(93
)
  
(14
)
Ending balance
 
 
$ 251
 
  
$ 263
 
Corporate debt instruments
 
 
 
  
 
Beginning balance
 
 
$ 692
 
  
$ 912
 
Net realized gains/(losses)
 
 
22
 
  
13
 
Net unrealized gains/(losses)
 
 
(132
)
  
(11
)
Purchases
 
 
238
 
  
60
 
Sales
 
 
(214
)
  
(135
)
Settlements
 
 
(80
)
  
(45
)
Transfers into level 3
 
 
242
 
  
151
 
Transfers out of level 3
 
 
(49
)
  
(156
)
Ending balance
 
 
$ 719
 
  
$ 789
 
Other
 
 
 
  
 
Beginning balance
 
 
$ 128
 
  
$   97
 
Net realized gains/(losses)
 
 
2
 
  
2
 
Net unrealized gains/(losses)
 
 
(12
)
  
(1
)
Purchases
 
 
21
 
  
21
 
Sales
 
 
(25
)
  
(15
)
Settlements
 
 
(10
)
  
(6
)
Transfers into level 3
 
 
32
 
  
79
 
Transfers out of level 3
 
 
(2
)
  
(10
)
Ending balance
 
 
$ 134
 
  
$ 167
 
 
 
In the table above, other includes U.S. and
non-U.S.
government and agency obligations, other debt obligations and equity securities.
Level 3 Rollforward Commentary
Three Months Ended March 2020.
The net realized and unrealized losses on level 3 trading cash instrument assets of $125 million (reflecting $34 million of net realized gains and $159 million of net unrealized losses) for the three months ended March 2020 included gains/(losses) of $(4) million reported in investment banking, $(158) million reported in market making and $37 million reported in interest income.
The net unrealized losses on level 3 trading cash instrument assets for the three months ended March 2020 primarily reflected losses on certain corporate debt instruments, principally driven by weak corporate performance.
Transfers into level 3 trading cash instrument assets during the three months ended March 2020 primarily reflected transfers of certain corporate debt instruments from level 2, principally due to reduced price transparency as a result of a lack of market evidence, including fewer market transactions in these instruments.
The drivers of transfers out of level 3 trading cash instrument assets during the three months ended March 2020 were not material.
Three Months Ended March 2019.
The net realized and unrealized gains on level 3 trading cash instrument assets of $14 million (reflecting $25 million of net realized gains and $11 million of net unrealized losses) for the three months ended March 2019 included gains/(losses) of $(26) million reported in market making and $40 million reported in interest income.
The drivers of net unrealized losses on level 3 trading cash instrument assets for the three months ended March 2019 were not material.
Transfers into level 3 trading cash instrument assets during the three months ended March 2019 primarily reflected transfers of certain corporate debt instruments and loans and securities backed by commercial real estate from level 2, principally due to reduced price transparency as a result of a lack of market evidence, including fewer market transactions in these instruments.
Transfers out of level 3 trading cash instrument assets during the three months ended March 2019 primarily reflected transfers of certain corporate debt instruments to level 2, principally due to increased price transparency as a result of market evidence, including market transactions in these instruments.
   
19
 
Goldman Sachs March 2020 Form 10-Q
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 7.
Derivatives and Hedging Activities
Derivative Activities
Derivatives are instruments that derive their value from underlying asset prices, indices, reference rates and other inputs, or a combination of these factors. Derivatives may be traded on an exchange (exchange-traded) or they may be privately negotiated contracts, which are usually referred to as OTC derivatives. Certain of the firm’s OTC derivatives are cleared and settled through central clearing counterparties
(OTC-cleared),
while others are bilateral contracts between two counterparties (bilateral OTC).
Market Making.
As a market maker, the firm enters into derivative transactions to provide liquidity to clients and to facilitate the transfer and hedging of their risks. In this role, the firm typically acts as principal and is required to commit capital to provide execution, and maintains market-making positions in response to, or in anticipation of, client demand.
Risk Management.
The firm also enters into derivatives to actively manage risk exposures that arise from its market-making and investing and financing activities. The firm’s holdings and exposures are hedged, in many cases, on either a portfolio or risk-specific basis, as opposed to an
instrument-by-instrument
basis. The offsetting impact of this economic hedging is reflected in the same business segment as the related revenues. In addition, the firm may enter into derivatives designated as hedges under U.S. GAAP. These derivatives are used to manage interest rate exposure in certain fixed-rate unsecured long-term and short-term borrowings, and deposits, and to manage foreign currency exposure on the net investment in certain
non-U.S.
operations.
The firm enters into various types of derivatives, including:
 
•
Futures and Forwards.
Contracts that commit counterparties to purchase or sell financial instruments, commodities or currencies in the future.
 
 
 
•
Swaps.
Contracts that require counterparties to exchange cash flows, such as currency or interest payment streams. The amounts exchanged are based on the specific terms of the contract with reference to specified rates, financial instruments, commodities, currencies or indices.
 
 
 
•
Options.
Contracts in which the option purchaser has the right, but not the obligation, to purchase from or sell to the option writer financial instruments, commodities or currencies within a defined time period for a specified price.
 
 
Derivatives are reported on a
net-by-counterparty
basis (i.e., the net payable or receivable for derivative assets and liabilities for a given counterparty) when a legal right of setoff exists under an enforceable netting agreement (counterparty netting). Derivatives are accounted for at fair value, net of cash collateral received or posted under enforceable credit support agreements (cash collateral netting). Derivative assets are included in trading assets and derivative liabilities are included in trading liabilities. Realized and unrealized gains and losses on derivatives not designated as hedges are included in market making (for derivatives included in the Global Markets segment), and other principal transactions (for derivatives included in the remaining business segments) in the consolidated statements of earnings. For both the three months ended March 2020 and March 2019, substantially all of the firm’s derivatives were included in the Global Markets segment.
   
Goldman Sachs March 2020 Form 10-Q
 
20
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The tables below present the gross fair value and the notional amounts of derivative contracts by major product type, the amounts of counterparty and cash collateral netting in the consolidated balance sheets, as well as cash and securities collateral posted and received under enforceable credit support agreements that do not meet the criteria for netting under U.S. GAAP.
 
                   
         
 
As of March 2020
  
 
As of December 2019
 
                   
$ in millions
 
 
Derivative Assets
 
 
 
Derivative Liabilities
 
 
    
  
Derivative Assets
   
Derivative Liabilities
 
Not accounted for as hedges
 
 
 
 
 
 
 
Exchange-traded
 
 
$     1,233
 
 
 
$     1,815
 
 
  
$        476
   
$        856
 
OTC-cleared
 
 
16,091
 
 
 
13,947
 
 
  
9,958
   
8,618
 
Bilateral OTC
 
 
355,084
 
 
 
323,742
 
 
  
266,387
   
242,046
 
Total interest rates
 
 
372,408
 
 
 
339,504
 
 
  
276,821
   
251,520
 
OTC-cleared
 
 
1,937
 
 
 
1,735
 
 
  
6,551
   
6,929
 
Bilateral OTC
 
 
22,215
 
 
 
20,639
 
 
  
14,178
   
13,860
 
Total credit
 
 
24,152
 
 
 
22,374
 
 
  
20,729
   
20,789
 
Exchange-traded
 
 
78
 
 
 
27
 
 
  
35
   
10
 
OTC-cleared
 
 
1,114
 
 
 
1,229
 
 
  
411
   
391
 
Bilateral OTC
 
 
130,426
 
 
 
130,093
 
 
  
79,887
   
81,613
 
Total currencies
 
 
131,618
 
 
 
131,349
 
 
  
80,333
   
82,014
 
Exchange-traded
 
 
6,926
 
 
 
6,489
 
 
  
2,390
   
2,272
 
OTC-cleared
 
 
172
 
 
 
201
 
 
  
180
   
243
 
Bilateral OTC
 
 
18,434
 
 
 
23,466
 
 
  
8,568
   
13,034
 
Total commodities
 
 
25,532
 
 
 
30,156
 
 
  
11,138
   
15,549
 
Exchange-traded
 
 
33,169
 
 
 
35,127
 
 
  
13,499
   
16,976
 
Bilateral OTC
 
 
54,380
 
 
 
54,276
 
 
  
36,162
   
39,531
 
Total equities
 
 
87,549
 
 
 
89,403
 
 
  
49,661
   
56,507
 
Subtotal
 
 
641,259
 
 
 
612,786
 
 
  
438,682
   
426,379
 
Accounted for as hedges
 
 
 
 
 
 
 
OTC-cleared
 
 
4
 
 
 
–
 
 
  
–
   
–
 
Bilateral OTC
 
 
1,544
 
 
 
–
 
 
  
3,182
   
1
 
Total interest rates
 
 
1,548
 
 
 
–
 
 
  
3,182
   
1
 
OTC-cleared
 
 
272
 
 
 
23
 
 
  
16
   
57
 
Bilateral OTC
 
 
177
 
 
 
99
 
 
  
16
   
153
 
Total currencies
 
 
449
 
 
 
122
 
 
  
32
   
210
 
Subtotal
 
 
1,997
 
 
 
122
 
 
  
3,214
   
211
 
Total gross fair value
 
 
$ 643,256
 
 
 
$ 612,908
 
 
  
$ 441,896
   
$ 426,590
 
Offset in the consolidated balance sheets
 
Exchange-traded
 
 
$  (35,739
)
 
 
$  (35,739
)
 
  
$  (14,159
)  
$  (14,159
)
OTC-cleared
 
 
(16,855
)
 
 
(16,855
)
 
  
(15,565
)  
(15,565
)
Bilateral OTC
 
 
(438,292
)
 
 
(438,292
)
 
  
(310,920
)  
(310,920
)
Counterparty netting
 
 
(490,886
)
 
 
(490,886
)
 
  
(340,644
)  
(340,644
)
OTC-cleared
 
 
(1,639
)
 
 
(49
)
 
  
(1,302
)  
(526
)
Bilateral OTC
 
 
(76,160
)
 
 
(59,934
)
 
  
(54,698
)  
(41,618
)
Cash collateral netting
 
 
(77,799
)
 
 
(59,983
)
 
  
(56,000
)  
(42,144
)
Total amounts offset
 
 
$(568,685
)
 
 
$(550,869
)
 
  
$(396,644
)  
$(382,788
)
Included in the consolidated balance sheets
 
Exchange-traded
 
 
$     5,667
 
 
 
$     7,719
 
 
  
$     2,241
   
$     5,955
 
OTC-cleared
 
 
1,096
 
 
 
231
 
 
  
249
   
147
 
Bilateral OTC
 
 
67,808
 
 
 
54,089
 
 
  
42,762
   
37,700
 
Total
 
 
$   74,571
 
 
 
$   62,039
 
 
  
$   45,252
   
$   43,802
 
Not offset in the consolidated balance sheets
 
Cash collateral
 
 
$    (1,447
)
 
 
$    (2,971
)
 
  
$       (604
)  
$    (1,603
)
Securities collateral
 
 
(18,357
)
 
 
(11,940
)
 
  
(14,196
)  
(9,252
)
Total
 
 
$   54,767
 
 
 
$   47,128
 
 
  
$   30,452
   
$   32,947
 
 
 
 
 
 
 
         
    
 
Notional Amounts as of
 
         
$ in millions
 
 
March
2020
 
  
December 2019
 
Not accounted for as hedges
 
 
 
  
 
Exchange-traded
 
 
$  3,881,459
 
  
$  4,757,300
 
OTC-cleared
 
 
21,309,964
 
  
13,440,376
 
Bilateral OTC
 
 
11,550,666
 
  
11,668,171
 
Total interest rates
 
 
36,742,089
 
  
29,865,847
 
OTC-cleared
 
 
536,609
 
  
396,342
 
Bilateral OTC
 
 
825,708
 
  
707,935
 
Total credit
 
 
1,362,317
 
  
1,104,277
 
Exchange-traded
 
 
4,822
 
  
4,566
 
OTC-cleared
 
 
167,487
 
  
134,060
 
Bilateral OTC
 
 
6,952,771
 
  
5,926,602
 
Total currencies
 
 
7,125,080
 
  
6,065,228
 
Exchange-traded
 
 
239,892
 
  
230,018
 
OTC-cleared
 
 
2,383
 
  
2,639
 
Bilateral OTC
 
 
241,849
 
  
243,228
 
Total commodities
 
 
484,124
 
  
475,885
 
Exchange-traded
 
 
1,071,077
 
  
910,099
 
Bilateral OTC
 
 
1,075,007
 
  
1,182,335
 
Total equities
 
 
2,146,084
 
  
2,092,434
 
Subtotal
 
 
47,859,694
 
  
39,603,671
 
Accounted for as hedges
 
 
 
  
 
OTC-cleared
 
 
148,644
 
  
123,531
 
Bilateral OTC
 
 
6,741
 
  
9,714
 
Total interest rates
 
 
155,385
 
  
133,245
 
OTC-cleared
 
 
3,734
 
  
4,152
 
Bilateral OTC
 
 
8,882
 
  
9,247
 
Total currencies
 
 
12,616
 
  
13,399
 
Subtotal
 
 
168,001
 
  
146,644
 
Total notional amounts
 
 
$48,027,695
 
  
$39,750,315
 
 
 
 
 
 
 
In the tables above:
 
•
Gross fair values exclude the effects of both counterparty netting and collateral, and therefore are not representative of the firm’s exposure.
 
 
 
 
 
 
 
•
Where the firm has received or posted collateral under credit support agreements, but has not yet determined such agreements are enforceable, the related collateral has not been netted.
 
 
 
 
 
 
 
•
Notional amounts, which represent the sum of gross long and short derivative contracts, provide an indication of the volume of the firm’s derivative activity and do not represent anticipated losses.
 
 
 
 
 
 
 
•
Total gross fair value of derivatives included derivative assets of $17.15 billion as of March 2020 and $9.15 billion as of December 2019, and derivative liabilities of $20.35 billion as of March 2020 and $14.88 billion as of December 2019, which are not subject to an enforceable netting agreement or are subject to a netting agreement that the firm has not yet determined to be enforceable.
 
 
 
 
 
 
 
•
During the first quarter of 2020, consistent with the rules of a clearing organization, the firm elected to consider its transactions with that clearing organization as settled each day. The impact of this change would have been a reduction in gross credit derivative assets of $3.97 billion and liabilities of $4.15 billion as of December 2019, and a corresponding decrease in counterparty and cash collateral netting, with no impact to the consolidated balance sheets.
 
 
 
 
 
 
   
21
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Fair Value of Derivatives by Level
The table below presents derivatives on a gross basis by level and product type, as well as the impact of netting.
 
                 
                 
$ in millions
  
Level 1
   
Level 2
   
Level 3
   
Total
 
As of March 2020
 
 
 
  
   
   
 
Assets
 
 
 
  
   
   
 
Interest rates
 
 
$ 18
 
 
 
$ 373,085
 
 
 
$    853
 
 
 
$ 373,956
 
Credit
 
 
–
 
 
 
19,560
 
 
 
4,592
 
 
 
24,152
 
Currencies
 
 
–
 
 
 
131,624
 
 
 
443
 
 
 
132,067
 
Commodities
 
 
–
 
 
 
24,784
 
 
 
748
 
 
 
25,532
 
Equities
 
 
13
 
 
 
85,247
 
 
 
2,289
 
 
 
87,549
 
Gross fair value
 
 
31
 
 
 
634,300
 
 
 
8,925
 
 
 
643,256
 
Counterparty netting in levels
 
 
–
 
 
 
(488,529
)
 
 
(1,544
)
 
 
(490,073
)
Subtotal
 
 
$ 31
 
 
 
$ 145,771
 
 
 
$ 7,381
 
 
 
$ 153,183
 
Cross-level counterparty netting
 
 
 
 
 
 
 
 
 
 
 
(813
)
Cash collateral netting
 
 
 
 
 
 
 
 
 
 
 
(77,799
)
Net fair value
 
 
 
 
 
 
 
 
 
 
 
$   74,571
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Interest rates
 
 
$(32
)
 
 
$(338,885
)
 
 
$   (587
)
 
 
$(339,504
)
Credit
 
 
–
 
 
 
(20,300
)
 
 
(2,074
)
 
 
(22,374
)
Currencies
 
 
–
 
 
 
(131,089
)
 
 
(382
)
 
 
(131,471
)
Commodities
 
 
–
 
 
 
(29,796
)
 
 
(360
)
 
 
(30,156
)
Equities
 
 
(17
)
 
 
(85,524
)
 
 
(3,862
)
 
 
(89,403
)
Gross fair value
 
 
(49
)
 
 
(605,594
)
 
 
(7,265
)
 
 
(612,908
)
Counterparty netting in levels
 
 
–
 
 
 
488,529
 
 
 
1,544
 
 
 
490,073
 
Subtotal
 
 
$(49
)
 
 
$(117,065
)
 
 
$(5,721
)
 
 
$(122,835
)
Cross-level counterparty netting
 
 
 
 
 
 
 
 
 
 
 
813
 
Cash collateral netting
 
 
 
 
 
 
 
 
 
 
 
59,983
 
Net fair value
 
 
 
 
 
 
 
 
 
 
 
$  (62,039
)
 
As of December 2019
 
 
 
  
   
   
 
Assets
 
 
 
  
   
   
 
Interest rates
  
$
 
   3
   
$
 
 279,443
   
$
 
    557
   
$
 
 280,003
 
Credit
  
–
   
17,204
   
3,525
   
20,729
 
Currencies
  
–
   
80,178
   
187
   
80,365
 
Commodities
  
–
   
10,648
   
490
   
11,138
 
Equities
  
21
   
48,953
   
687
   
49,661
 
Gross fair value
  
24
   
436,426
   
5,446
   
441,896
 
Counterparty netting in levels
  
–
   
(340,325
)  
(792
)  
(341,117
)
Subtotal
  
$
 
 24
   
$  
 
 96,101
   
$
 
 4,654
   
$
 
 100,779
 
Cross-level counterparty netting
  
   
   
   
473
 
Cash collateral netting
  
   
   
   
(56,000
)
Net fair value
  
$
 
   45,252
 
Liabilities
  
   
   
   
 
Interest rates
  
$
 
  (3
)  
$
 
(251,050
)  
$
 
   (468
)  
$
 
(251,521
)
Credit
  
–
   
(19,141
)  
(1,648
)  
(20,789
)
Currencies
  
–
   
(81,826
)  
(398
)  
(82,224
)
Commodities
  
–
   
(15,306
)  
(243
)  
(15,549
)
Equities
  
(26
)  
(53,817
)  
(2,664
)  
(56,507
)
Gross fair value
  
(29
)  
(421,140
)  
(5,421
)  
(426,590
)
Counterparty netting in levels
  
–
   
340,325
   
792
   
341,117
 
Subtotal
  
$
 
(29
)  
$
 
  (80,815
)  
$
 
(4,629
)  
$
 
  (85,473
)
Cross-level counterparty netting
  
   
   
   
(473
)
Cash collateral netting
  
   
   
   
42,144
 
Net fair value
  
   
   
   
$
 
  (43,802
)
 
 
 
 
 
 
 
In the table above:
 
•
Gross fair values exclude the effects of both counterparty netting and collateral netting, and therefore are not representative of the firm’s exposure.
 
 
 
 
•
Counterparty netting is reflected in each level to the extent that receivable and payable balances are netted within the same level and is included in counterparty netting in levels. Where the counterparty netting is across levels, the netting is included in cross-level counterparty netting.
 
 
 
 
 
 
 
 
•
Derivative assets are shown as positive amounts and derivative liabilities are shown as negative amounts.
 
 
 
 
 
See Note 4 for an overview of the firm’s fair value measurement policies and the valuation techniques and significant inputs used to determine the fair value of derivatives.
 
Significant Unobservable Inputs
The table below presents the amount of level 3 derivative assets (liabilities), and ranges, averages and medians of significant unobservable inputs used to value level 3 derivatives.
 
             
    
 
Level 3 Assets (Liabilities) and Range of Significant
Unobservable Inputs (Average/Median) as of
 
         
$ in millions, except inputs
 
 
March
2020
 
  
December
2019
 
Interest rates, net
 
$266 
   
$89 
 
 
Correlation
 
(42)% to 81% (52%/62%)
   
(42)% to 81% (52%/60%)
 
 
Volatility (bps)
 
31 to 150 (70/61)
   
31 to 150 (70/61)
 
Credit, net
 
$2,518 
   
$1,877 
 
 
Credit spreads (bps)
 
2 to 872 (154/95)
   
1 to 559 (96/53)
 
 
Upfront credit points
 
1 to 95 (32/25)
   
2 to 90 (38/32)
 
 
Recovery rates
 
1% to 70% (35%/38%)
   
10% to 60% (31%/25%)
 
Currencies, net
 
$61 
   
$(211)
 
 
Correlation
 
20% to 70% (39%/41%)
   
20% to 70% (37%/36%)
 
Commodities, net
 
$388 
   
$247 
 
 
Volatility
 
15% to 187% (45%/42%)
   
9% to 57% (26%/25%)
 
 
Natural gas spread
 
$(1.31) to $1.50  
($(0.15)/$(0.09))
   
$(1.93) to $1.69  
($(0.16)/$(0.17))
 
 
Oil spread
 
$(4.71) to $18.31  
($3.92/$1.26)
   
$(4.86) to $19.77 
($9.82/$11.15)
 
Equities, net
 
$(1,573)
   
$(1,977)
 
 
Correlation
 
(70)% to 99% (53%/62%)
   
(70)% to 99% (42%/45%)
 
 
Volatility
 
2% to 129% (27%/20%)
   
2% to 72% (14%/7%)
 
 
 
 
 
 
 
In the table above:
 
•
Derivative assets are shown as positive amounts and derivative liabilities are shown as negative amounts.
 
 
 
 
 
 
 
•
Ranges represent the significant unobservable inputs that were used in the valuation of each type of derivative.
 
 
 
 
 
 
 
•
Averages represent the arithmetic average of the inputs and are not weighted by the relative fair value or notional of the respective financial instruments. An average greater than the median indicates that the majority of inputs are below the average. For example, the difference between the average and the median for credit spreads indicates that the majority of the inputs fall in the lower end of the range.
 
 
 
 
 
 
   
Goldman Sachs March 2020 Form 10-Q
 
22
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
•
The ranges, averages and medians of these inputs are not representative of the appropriate inputs to use when calculating the fair value of any one derivative. For example, the highest correlation for interest rate derivatives is appropriate for valuing a specific interest rate derivative but may not be appropriate for valuing any other interest rate derivative. Accordingly, the ranges of inputs do not represent uncertainty in, or possible ranges of, fair value measurements of level 3 derivatives.
 
•
Interest rates, currencies and equities derivatives are valued using option pricing models, credit derivatives are valued using option pricing, correlation and discounted cash flow models, and commodities derivatives are valued using option pricing and discounted cash flow models.
 
•
The fair value of any one instrument may be determined using multiple valuation techniques. For example, option pricing models and discounted cash flows models are typically used together to determine fair value. Therefore, the level 3 balance encompasses both of these techniques.
 
•
Correlation within currencies and equities includes cross-product type correlation.
 
•
Natural gas spread represents the spread per million British thermal units of natural gas.
 
•
Oil spread represents the spread per barrel of oil and refined products.
Range of Significant Unobservable Inputs
The following provides information about the ranges of significant unobservable inputs used to value the firm’s level 3 derivative instruments:
 
•
Correlation.
 Ranges for correlation cover a variety of underliers both within one product type (e.g., equity index and equity single stock names) and across product types (e.g., correlation of an interest rate and a currency), as well as across regions. Generally, cross-product type correlation inputs are used to value more complex instruments and are lower than correlation inputs on assets within the same derivative product type. 
 
•
Volatility.
 Ranges for volatility cover numerous underliers across a variety of markets, maturities and strike prices. For example, volatility of equity indices is generally lower than volatility of single stocks. 
•
Credit spreads, upfront credit points and recovery rates.
The ranges for credit spreads, upfront credit points and recovery rates cover a variety of underliers (index and single names), regions, sectors, maturities and credit qualities (high-yield and investment-grade). The broad range of this population gives rise to the width of the ranges of significant unobservable inputs.
 
•
Commodity prices and spreads.
The ranges for commodity prices and spreads cover variability in products, maturities and delivery locations.
Sensitivity of Fair Value Measurement to Changes in Significant Unobservable Inputs
The following is a description of the directional sensitivity of the firm’s level 3 fair value measurements to changes in significant unobservable inputs, in isolation, as of each
period-end:
 
•
Correlation.
In general, for contracts where the holder benefits from the convergence of the underlying asset or index prices (e.g., interest rates, credit spreads, foreign exchange rates, inflation rates and equity prices), an increase in correlation results in a higher fair value measurement.
 
•
Volatility.
In general, for purchased options, an increase in volatility results in a higher fair value measurement.
 
•
Credit spreads, upfront credit points and recovery rates.
In general, the fair value of purchased credit protection increases as credit spreads or upfront credit points increase or recovery rates decrease. Credit spreads, upfront credit points and recovery rates are strongly related to distinctive risk factors of the underlying reference obligations, which include reference entity-specific factors, such as leverage, volatility and industry, market-based risk factors, such as borrowing costs or liquidity of the underlying reference obligation, and macroeconomic conditions.
 
•
Commodity prices and spreads.
In general, for contracts where the holder is receiving a commodity, an increase in the spread (price difference from a benchmark index due to differences in quality or delivery location) or price results in a higher fair value measurement.
Due to the distinctive nature of each of the firm’s level 3 derivatives, the interrelationship of inputs is not necessarily uniform within each product type.
23
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Level 3 Rollforward
The table below presents a summary of the changes in fair value for level 3 derivatives.
 
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Total level 3 derivatives, net
 
 
 
  
 
Beginning balance
 
 
$     25
 
  
$    590
 
Net realized gains/(losses)
 
 
137
 
  
49
 
Net unrealized gains/(losses)
 
 
2,305
 
  
(91
)
Purchases
 
 
223
 
  
110
 
Sales
 
 
(413
)
  
(1,574
)
Settlements
 
 
41
 
  
384
 
Transfers into level 3
 
 
(801
)
  
(34
)
Transfers out of level 3
 
 
143
 
  
(122
)
Ending balance
 
 
$1,660
 
  
$   (688
)
In the table above:
 
•
Changes in fair value are presented for all derivative assets and liabilities that are classified in level 3 as of the end of the period.
 
•
Net unrealized gains/(losses) relates to instruments that were still held at
period-end.
 
•
Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. If a derivative was transferred into level 3 during a reporting period, its entire gain or loss for the period is classified in level 3.
 
•
Positive amounts for transfers into level 3 and negative amounts for transfers out of level 3 represent net transfers of derivative assets. Negative amounts for transfers into level 3 and positive amounts for transfers out of level 3 represent net transfers of derivative liabilities.
 
•
A derivative with level 1 and/or level 2 inputs is classified in level 3 in its entirety if it has at least one significant level 3 input.
 
•
If there is one significant level 3 input, the entire gain or loss from adjusting only observable inputs (i.e., level 1 and level 2 inputs) is classified in level 3.
 
•
Gains or losses that have been classified in level 3 resulting from changes in level 1 or level 2 inputs are frequently offset by gains or losses attributable to level 1 or level 2 derivatives and/or level 1, level 2 and level 3 trading cash instruments. As a result, gains/(losses) included in the level 3 rollforward below do not necessarily represent the overall impact on the firm’s results of operations, liquidity or capital resources.
The table below presents information, by product type, for derivatives included in the summary table above.
 
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Interest rates, net
 
 
 
  
 
Beginning balance
 
 
$      89
 
  
$   (109
)
Net realized gains/(losses)
 
 
7
 
  
–
 
Net unrealized gains/(losses)
 
 
132
 
  
111
 
Purchases
 
 
1
 
  
2
 
Sales
 
 
(13
)
  
(4
)
Settlements
 
 
37
 
  
(17
)
Transfers into level 3
 
 
11
 
  
(11
)
Transfers out of level 3
 
 
2
 
  
9
 
Ending balance
 
 
$    266
 
  
$     (19
)
Credit, net
 
 
 
  
 
Beginning balance
 
 
$ 1,877
 
  
$ 1,672
 
Net realized gains/(losses)
 
 
(20
)
  
8
 
Net unrealized gains/(losses)
 
 
652
 
  
80
 
Purchases
 
 
53
 
  
42
 
Sales
 
 
(27
)
  
(28
)
Settlements
 
 
(55
)
  
(32
)
Transfers into level 3
 
 
11
 
  
55
 
Transfers out of level 3
 
 
27
 
  
77
 
Ending balance
 
 
$ 2,518
 
  
$ 1,874
 
Currencies, net
 
 
 
  
 
Beginning balance
 
 
$   (211
)
  
$    461
 
Net realized gains/(losses)
 
 
(6
)
  
(12
)
Net unrealized gains/(losses)
 
 
185
 
  
(131
)
Purchases
 
 
–
 
  
2
 
Sales
 
 
(11
)
  
(16
)
Settlements
 
 
111
 
  
29
 
Transfers into level 3
 
 
(4
)
  
(1
)
Transfers out of level 3
 
 
(3
)
  
(303
)
Ending balance
 
 
$      61
 
  
$      29
 
Commodities, net
 
 
 
  
 
Beginning balance
 
 
$    247
 
  
$    112
 
Net realized gains/(losses)
 
 
17
 
  
18
 
Net unrealized gains/(losses)
 
 
197
 
  
15
 
Purchases
 
 
22
 
  
3
 
Sales
 
 
(69
)
  
(6
)
Settlements
 
 
(7
)
  
(12
)
Transfers into level 3
 
 
(11
)
  
(8
)
Transfers out of level 3
 
 
(8
)
  
23
 
Ending balance
 
 
$    388
 
  
$    145
 
Equities, net
 
 
 
  
 
Beginning balance
 
 
$(1,977
)
  
$(1,546
)
Net realized gains/(losses)
 
 
139
 
  
35
 
Net unrealized gains/(losses)
 
 
1,139
 
  
(166
)
Purchases
 
 
147
 
  
61
 
Sales
 
 
(293
)
  
(1,520
)
Settlements
 
 
(45
)
  
416
 
Transfers into level 3
 
 
(808
)
  
(69
)
Transfers out of level 3
 
 
125
 
  
72
 
Ending balance
 
 
$(1,573
)
  
$(2,717
)
Level 3 Rollforward Commentary
Three Months Ended March 2020.
The net realized and unrealized gains on level 3 derivatives of $2.44 billion (reflecting $137 million of net realized gains and $2.31 billion of net unrealized gains) for the three months ended March 2020 included gains of $2.42 billion reported in market making and $23 million reported in other principal transactions.
Goldman Sachs March 2020 Form 10-Q
 
24
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The net unrealized gains on level 3 derivatives for the three months ended March 2020 were primarily attributable to gains on certain equity derivatives (primarily reflecting the impact of a decrease in equity prices), gains on certain credit derivatives (primarily reflecting the impact of a decrease in interest rates and widening of certain credit spreads), gains on certain commodity derivatives (primarily reflecting the impact of a decrease in commodity prices), gains on certain currency derivatives (primarily reflecting the impact of changes in foreign exchange rates) and gains on certain interest rate derivatives (primarily reflecting a decrease in interest rates).
Transfers into level 3 derivatives during the three months ended March 2020 primarily reflected transfers of certain equity derivative liabilities from level 2, principally due to increased significance of certain unobservable inputs used to value these derivatives.
Transfers out of level 3 derivatives during the three months ended March 2020 primarily reflected transfers of certain equity derivative liabilities to level 2, principally due to increased transparency of certain unobservable volatility inputs used to value these derivatives.
Three Months Ended March 2019.
The net realized and unrealized losses on level 3 derivatives of $42 million (reflecting $49 million of net realized gains and $91 million of net unrealized losses) for the three months ended March 2019 included losses of $28 million reported in market making and $14 million reported in other principal transactions.
The net unrealized losses on level 3 derivatives for the three months ended March 2019 were primarily attributable to losses on certain equity derivatives (primarily reflecting the impact of an increase in equity prices), losses on certain currency derivatives (primarily reflecting the impact of a decrease in interest rates), partially offset by gains on certain interest rate derivatives (primarily reflecting the impact of a decrease in interest rates and changes in foreign exchange rates).
The drivers of transfers into level 3 derivatives during the three months ended March 2019 were not material.
Transfers out of level 3 derivatives during the three months ended March 2019 primarily reflected transfers of certain currency derivative assets to level 2, principally due to certain unobservable inputs no longer being significant to the valuation of these derivatives, partially offset by transfers of certain credit derivative liabilities to level 2, principally due to certain unobservable credit spread inputs no longer being significant to the valuation of these derivatives, and transfers of certain equity derivative liabilities to level 2, principally due to increased transparency and reduced significance of volatility and correlation inputs used to value these derivatives.
OTC Derivatives
The table below presents OTC derivative assets and liabilities by tenor and major product type.
 
                 
                 
$ in millions
  
Less than 1 Year
   
1 - 5
Years
   
Greater than 5 Years
   
Total
 
As of March 2020
 
 
 
  
   
   
 
Assets
 
 
 
  
   
   
 
Interest rates
 
 
$  9,971
 
 
 
$21,382
 
 
 
$70,611
 
 
 
$101,964
 
Credit
 
 
1,776
 
 
 
4,342
 
 
 
4,306
 
 
 
10,424
 
Currencies
 
 
21,673
 
 
 
6,428
 
 
 
8,945
 
 
 
37,046
 
Commodities
 
 
6,741
 
 
 
2,486
 
 
 
512
 
 
 
9,739
 
Equities
 
 
11,562
 
 
 
7,238
 
 
 
3,169
 
 
 
21,969
 
Counterparty netting in tenors
 
 
(4,734
)
 
 
(5,006
)
 
 
(3,722
)
 
 
(13,462
)
Subtotal
 
 
$46,989
 
 
 
$36,870
 
 
 
$83,821
 
 
 
$167,680
 
Cross-tenor
 counterparty netting
 
 
 
 
 
 
 
 
 
 
 
(20,977
)
Cash collateral netting
 
 
 
 
 
 
 
 
 
 
 
(77,799
)
Total OTC derivative assets
 
 
 
 
 
 
 
 
 
 
 
$  68,904
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Interest rates
 
 
$  8,157
 
 
 
$12,908
 
 
 
$45,859
 
 
 
$  66,924
 
Credit
 
 
1,817
 
 
 
4,433
 
 
 
2,399
 
 
 
8,649
 
Currencies
 
 
17,701
 
 
 
11,104
 
 
 
7,700
 
 
 
36,505
 
Commodities
 
 
7,790
 
 
 
2,711
 
 
 
4,299
 
 
 
14,800
 
Equities
 
 
9,567
 
 
 
7,999
 
 
 
4,298
 
 
 
21,864
 
Counterparty netting in tenors
 
 
(4,734
)
 
 
(5,006
)
 
 
(3,722
)
 
 
(13,462
)
Subtotal
 
 
$40,298
 
 
 
$34,149
 
 
 
$60,833
 
 
 
$135,280
 
Cross-tenor counterparty netting
 
 
 
 
 
 
 
 
 
 
 
(20,977
)
Cash collateral netting
 
 
 
 
 
 
 
 
 
 
 
(59,983
)
Total OTC derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
$  54,320
 
 
As of December 2019
 
 
 
  
   
   
 
Assets
 
 
 
  
   
   
 
Interest rates
  
$  5,521
   
$15,183
   
$57,394
   
$  78,098
 
Credit
  
678
   
3,259
   
3,183
   
7,120
 
Currencies
  
10,236
   
5,063
   
6,245
   
21,544
 
Commodities
  
2,507
   
1,212
   
302
   
4,021
 
Equities
  
7,332
   
4,509
   
1,294
   
13,135
 
Counterparty netting in tenors
  
(3,263
)  
(3,673
)  
(2,332
)  
(9,268
)
Subtotal
  
$23,011
   
$25,553
   
$66,086
   
$114,650
 
Cross-tenor counterparty netting
 
 
 
  
   
   
(15,639
)
Cash collateral netting
 
 
 
  
   
   
(56,000
)
Total OTC derivative assets
  
   
   
   
$  43,011
 
Liabilities
  
   
   
   
 
Interest rates
  
$  3,654
   
$  9,113
   
$36,470
   
$  49,237
 
Credit
  
1,368
   
4,052
   
1,760
   
7,180
 
Currencies
  
12,486
   
6,906
   
4,036
   
23,428
 
Commodities
  
2,796
   
1,950
   
3,804
   
8,550
 
Equities
  
5,755
   
7,381
   
3,367
   
16,503
 
Counterparty netting in tenors
  
(3,263
)  
(3,673
)  
(2,332
)  
(9,268
)
Subtotal
  
$22,796
   
$25,729
   
$47,105
   
$  95,630
 
Cross-tenor counterparty netting
 
 
 
  
   
   
(15,639
)
Cash collateral netting
 
 
 
  
   
   
(42,144
)
Total OTC derivative liabilities
 
 
 
  
   
   
$  37,847
 
 
 
 
In the table above:
 
•
Tenor is based on remaining contractual maturity.
 
 
 
 
•
Counterparty netting within the same product type and tenor category is included within such product type and tenor category.
 
 
 
 
•
Counterparty netting across product types within the same tenor category is included in counterparty netting in tenors. Where the counterparty netting is across tenor categories, the netting is included in cross-tenor counterparty netting.
 
 
 
   
25
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Credit Derivatives
The firm enters into a broad array of credit derivatives to facilitate client transactions and to manage the credit risk associated with market-making and investing and financing activities. Credit derivatives are actively managed based on the firm’s net risk position. Credit derivatives are generally individually negotiated contracts and can have various settlement and payment conventions. Credit events include failure to pay, bankruptcy, acceleration of indebtedness, restructuring, repudiation and dissolution of the reference entity.
The firm enters into the following types of credit derivatives:
 
•
Credit Default Swaps.
Single-name credit default swaps protect the buyer against the loss of principal on one or more bonds, loans or mortgages (reference obligations) in the event the issuer of the reference obligations suffers a credit event. The buyer of protection pays an initial or periodic premium to the seller and receives protection for the period of the contract. If there is no credit event, as defined in the contract, the seller of protection makes no payments to the buyer. If a credit event occurs, the seller of protection is required to make a payment to the buyer, calculated according to the terms of the contract.
 
 
 
 
•
Credit Options.
In a credit option, the option writer assumes the obligation to purchase or sell a reference obligation at a specified price or credit spread. The option purchaser buys the right, but does not assume the obligation, to sell the reference obligation to, or purchase it from, the option writer. The payments on credit options depend either on a particular credit spread or the price of the reference obligation.
 
 
 
 
•
Credit Indices, Baskets and Tranches.
Credit derivatives may reference a basket of single-name credit default swaps or a broad-based index. If a credit event occurs in one of the underlying reference obligations, the protection seller pays the protection buyer. The payment is typically a
pro-rata
portion of the transaction’s total notional amount based on the underlying defaulted reference obligation. In certain transactions, the credit risk of a basket or index is separated into various portions (tranches), each having different levels of subordination. The most junior tranches cover initial defaults and once losses exceed the notional amount of these junior tranches, any excess loss is covered by the next most senior tranche.
 
 
 
•
Total Return Swaps.
A total return swap transfers the risks relating to economic performance of a reference obligation from the protection buyer to the protection seller. Typically, the protection buyer receives a floating rate of interest and protection against any reduction in fair value of the reference obligation, and the protection seller receives the cash flows associated with the reference obligation, plus any increase in the fair value of the reference obligation.
 
 
 
The firm economically hedges its exposure to written credit derivatives primarily by entering into offsetting purchased credit derivatives with identical underliers. Substantially all of the firm’s purchased credit derivative transactions are with financial institutions and are subject to stringent collateral thresholds. In addition, upon the occurrence of a specified trigger event, the firm may take possession of the reference obligations underlying a particular written credit derivative, and consequently may, upon liquidation of the reference obligations, recover amounts on the underlying reference obligations in the event of default.
As of March 2020, written credit derivatives had a total gross notional amount of $657.12 billion and purchased credit derivatives had a total gross notional amount of $705.20 billion, for total net notional purchased protection of $48.08 billion. As of December 2019, written credit derivatives had a total gross notional amount of $522.57 billion and purchased credit derivatives had a total gross notional amount of $581.76 billion, for total net notional purchased protection of $59.19 billion. The firm’s written and purchased credit derivatives primarily consist of credit default swaps.
   
Goldman Sachs March 2020 Form 10-Q
 
26
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents information about credit derivatives.
 
                     
    
 
Credit Spread on Underlier (basis points)
 
                
$ in millions
 
0 - 250
 
 
251 -
500
  
501 -
1,000
  
Greater
than
1,000
  
Total
 
As of March 2020
  
   
   
   
 
Maximum Payout/Notional Amount of Written Credit Derivatives by Tenor
 
Less than 1 year
 
 
$167,856
 
 
 
$  3,283
 
 
 
$17,312
 
 
 
$  4,882
 
 
 
$193,333
 
1 – 5 years
 
 
303,456
 
 
 
25,507
 
 
 
16,341
 
 
 
17,346
 
 
 
362,650
 
Greater than 5 years
 
 
91,017
 
 
 
5,570
 
 
 
3,038
 
 
 
1,509
 
 
 
101,134
 
Total
 
 
$562,329
 
 
 
$34,360
 
 
 
$36,691
 
 
 
$23,737
 
 
 
$657,117
 
Maximum Payout/Notional Amount of Purchased Credit Derivatives
 
Offsetting
 
 
$476,787
 
 
 
$29,983
 
 
 
$24,949
 
 
 
$21,639
 
 
 
$553,358
 
Other
 
 
$127,244
 
 
 
$  6,841
 
 
 
$12,957
 
 
 
$  4,801
 
 
 
$151,843
 
Fair Value of Written Credit Derivatives
 
Asset
 
 
$    3,833
 
 
 
$     246
 
 
 
$       30
 
 
 
$       51
 
 
 
$    4,160
 
Liability
 
 
4,333
 
 
 
1,939
 
 
 
3,304
 
 
 
8,237
 
 
 
17,813
 
Net asset/(liability)
 
 
$    
 
 (500
)
 
 
$
 
(1,693
)
 
 
$
 
(3,274
)
 
 
$
 
(8,186
)
 
 
$
 
(13,653
)
 
As of December 2019
  
   
   
   
 
Maximum Payout/Notional Amount of Written Credit Derivatives by Tenor
 
Less than 1 year
  
$143,566
   
$  7,155
   
$     759
   
$  2,953
   
$154,433
 
1 – 5 years
  
292,444
   
10,125
   
5,482
   
8,735
   
316,786
 
Greater than 5 years
  
48,109
   
2,260
   
427
   
554
   
51,350
 
Total
  
$484,119
   
$19,540
   
$  6,668
   
$12,242
   
$522,569
 
Maximum Payout/Notional Amount of Purchased Credit Derivatives
 
Offsetting
  
$395,127
   
$14,492
   
$  5,938
   
$10,543
   
$426,100
 
Other
  
$149,092
   
$  2,617
   
$  1,599
   
$  2,354
   
$155,662
 
Fair Value of Written Credit Derivatives
 
Asset
  
$  13,103
   
$     446
   
$     160
   
$     202
   
$  13,911
 
Liability
  
1,239
   
448
   
372
   
3,490
   
5,549
 
Net asset/(liability)
  
$  11,864
   
$        (2
)  
$    (212
)  
$
 
(3,288
)  
$    8,362
 
 
 
 
In the table above:
 
•
Fair values exclude the effects of both netting of receivable balances with payable balances under enforceable netting agreements, and netting of cash received or posted under enforceable credit support agreements, and therefore are not representative of the firm’s credit exposure.
 
 
 
 
•
Tenor is based on remaining contractual maturity.
 
 
 
 
•
The credit spread on the underlier, together with the tenor of the contract, are indicators of payment/performance risk. The firm is less likely to pay or otherwise be required to perform where the credit spread and the tenor are lower.
 
 
 
 
•
Offsetting purchased credit derivatives represent the notional amount of purchased credit derivatives that economically hedge written credit derivatives with identical underliers.
 
 
 
 
•
Other purchased credit derivatives represent the notional amount of all other purchased credit derivatives not included in offsetting.
 
 
 
Impact of Credit and Funding Spreads on Derivatives
The firm realizes gains or losses on its derivative contracts. These gains or losses include credit valuation adjustments (CVA) relating to uncollateralized derivative assets and liabilities, which represents the gains or losses (including hedges) attributable to the impact of changes in credit exposure, counterparty credit spreads, liability funding spreads (which includes the firm’s own credit), probability of default and assumed recovery. These gains or losses also include funding valuation adjustments (FVA) relating to uncollateralized derivative assets, which represents the gains or losses (including hedges) attributable to the impact of changes in expected funding exposures and funding spreads.
The table below presents information about CVA and FVA.
 
         
    
 
Three Months
Ended March
 
       
$ in millions
 
2020
 
 
2019
 
CVA, net of hedges
 
 
$ 271
 
  
$(163
)
FVA, net of hedges
 
 
(759
)
  
234
 
Total
 
 
$(488
)
  
$   71
 
 
 
 
Bifurcated Embedded Derivatives
The table below presents the fair value and the notional amount of derivatives that have been bifurcated from their related borrowings.
 
         
    
 
As of
 
       
$ in millions
 
March
2020
 
 
December
2019
 
Fair value of assets
 
 
$  1,361
 
  
$  1,148
 
Fair value of liabilities
 
 
1,715
 
  
1,717
 
Net liability
 
 
$     354
 
  
$     569
 
 
Notional amount
 
 
$11,280
 
  
$11,003
 
 
 
 
In the table above, derivatives that have been bifurcated from their related borrowings are recorded at fair value and primarily consist of interest rate, equity and commodity products. These derivatives are included in unsecured short- and long-term borrowings with the related borrowings.
Derivatives with Credit-Related Contingent Features
Certain of the firm’s derivatives have been transacted under bilateral agreements with counterparties who may require the firm to post collateral or terminate the transactions based on changes in the firm’s credit ratings. The firm assesses the impact of these bilateral agreements by determining the collateral or termination payments that would occur assuming a downgrade by all rating agencies. A downgrade by any one rating agency, depending on the agency’s relative ratings of the firm at the time of the downgrade, may have an impact which is comparable to the impact of a downgrade by all rating agencies.
   
27
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents information about net derivative liabilities under bilateral agreements (excluding collateral posted), the fair value of collateral posted and additional collateral or termination payments that could have been called by counterparties in the event of a
one-
or
two-notch
downgrade in the firm’s credit ratings.
 
         
    
 
As of
 
       
$ in millions
 
March
2020
 
 
December
2019
 
Net derivative liabilities under bilateral agreements
 
 
$49,450
 
  
$32,800
 
Collateral posted
 
 
$42,925
 
  
$28,510
 
Additional collateral or termination payments:
 
 
 
  
 
One-notch
downgrade
 
 
$    
 
364
 
  
$     358
 
Two-notch
downgrade
 
 
$    
 
922
 
  
$  1,268
 
 
 
 
Hedge Accounting
The firm applies hedge accounting for (i) certain interest rate swaps used to manage the interest rate exposure of certain fixed-rate unsecured long-term and short-term borrowings and certain fixed-rate certificates of deposit and (ii) certain foreign currency forward contracts and foreign currency-denominated debt used to manage foreign currency exposures on the firm’s net investment in certain
non-U.S.
operations.
To qualify for hedge accounting, the hedging instrument must be highly effective at reducing the risk from the exposure being hedged. Additionally, the firm must formally document the hedging relationship at inception and assess the hedging relationship at least on a quarterly basis to ensure the hedging instrument continues to be highly effective over the life of the hedging relationship.
Fair Value Hedges
The firm designates certain interest rate swaps as fair value hedges of certain fixed-rate unsecured long-term and short-term debt and fixed-rate certificates of deposit. These interest rate swaps hedge changes in fair value attributable to the designated benchmark interest rate (e.g., London Interbank Offered Rate (LIBOR) or Overnight Index Swap Rate), effectively converting a substantial portion of fixed-rate obligations into floating-rate obligations.
The firm applies a statistical method that utilizes regression analysis when assessing the effectiveness of its fair value hedging relationships in achieving offsetting changes in the fair values of the hedging instrument and the risk being hedged (i.e., interest rate risk). An interest rate swap is considered highly effective in offsetting changes in fair value attributable to changes in the hedged risk when the regression analysis results in a coefficient of determination of 80% or greater and a slope between 80% and 125%.
For qualifying fair value hedges, gains or losses on derivatives are included in interest expense. The change in fair value of the hedged item attributable to the risk being hedged is reported as an adjustment to its carrying value (hedging adjustment) and is also included in interest expense. When a derivative is no longer designated as a hedge, any remaining difference between the carrying value and par value of the hedged item is amortized to interest expense over the remaining life of the hedged item using the effective interest method. See Note 23 for further information about interest income and interest expense.
The table below presents the gains/(losses) from interest rate derivatives accounted for as hedges and the related hedged borrowings and deposits, and total interest expense.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Interest rate hedges
 
 
$ 6,586
 
  
$ 1,256
 
Hedged borrowings and deposits
 
 
$(6,679
)
  
$(1,351
)
Interest expense
 
 
$ 3,437
 
  
$ 4,379
 
 
 
 
In the table above, the difference between gains/(losses) from interest rate hedges and hedged borrowings and deposits was primarily due to the amortization of prepaid credit spreads resulting from the passage of time.
The table below presents the carrying value of the hedged items designated in a hedging relationship and the related cumulative hedging adjustment (increase/(decrease)) from current and prior hedging relationships included in such carrying values.
 
         
         
$ in millions
 
 
Carrying
Value
 
  
Cumulative
Hedging
Adjustment
 
As of March 2020
 
 
 
  
 
Deposits
 
 
$  19,660
 
 
 
$    
 
783
 
Unsecured short-term borrowings
 
 
$    7,171
 
 
 
$    
 
  61
 
Unsecured long-term borrowings
 
 
$103,057
 
 
 
$12,527
 
 
As of December 2019
 
 
 
  
 
Deposits
  
$  19,634
   
$     200
 
Unsecured short-term borrowings
  
$    6,008
   
$       28
 
Unsecured long-term borrowings
  
$  87,874
   
$  7,292
 
 
 
 
In the table above, cumulative hedging adjustment included $3.81 billion as of March 2020 and $3.48 billion as of December 2019 of hedging adjustments from prior hedging relationships that were
de-designated
and substantially all were related to unsecured long-term borrowings.
In addition,
cumulative hedging adjustments for items no longer designated in a hedging relationship were $1.25 billion as of March 2020 and $425 million as of December 2019 and substantially all were related to unsecured long-term borrowings.
   
Goldman Sachs March 2020 Form 10-Q
 
28
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Net Investment Hedges
The firm seeks to reduce the impact of fluctuations in foreign exchange rates on its net investments in certain
non-U.S.
operations through the use of foreign currency forward contracts and foreign currency-denominated debt. For foreign currency forward contracts designated as hedges, the effectiveness of the hedge is assessed based on the overall changes in the fair value of the forward contracts (i.e., based on changes in forward rates). For foreign currency-denominated debt designated as a hedge, the effectiveness of the hedge is assessed based on changes in spot rates. For qualifying net investment hedges, all gains or losses on the hedging instruments are included in currency translation.
The table below presents the gains/(losses) from net investment hedging.
 
         
    
 
Three Months
Ended March
 
       
$ in millions
 
2020
 
 
2019
 
Hedges:
 
 
 
  
 
Foreign currency forward contract
 
 
$756
 
  
$14
 
Foreign currency-denominated debt
 
 
$
 
(21
)
  
$31
 
 
 
Gains or losses on individual net investments in
non-U.S.
operations are reclassified to earnings from accumulated other comprehensive income/(loss) when such net investments are sold or substantially liquidated. The gross and net gains and losses on hedges and the related net investments in
non-U.S.
operations reclassified to earnings from accumulated other comprehensive income/(loss) were not material for both the three months ended March 2020 and March 2019.
The firm had designated $3.52 billion as of March 2020 and $3.05 billion as of December 2019 of foreign currency-denominated debt, included in unsecured long-term and short-term borrowings, as hedges of net investments in
non-U.S.
subsidiaries.
Note 8.
Investments
Investments includes debt instruments and equity securities that are accounted for at fair value and are generally held by the firm in connection with its long-term investing activities. In addition, investments includes debt securities classified as
available-for-sale
and
held-to-maturity
that are generally held in connection with the firm’s asset-liability management activities. Investments also consists of equity securities that are accounted for under the equity method.
The table below presents information about investments.
 
         
    
 
As of
 
       
$ in millions
 
March
2020
 
 
December
2019
 
Equity securities, at fair value
 
 
$21,221
 
  
$22,163
 
Debt instruments, at fair value
 
 
23,145
 
  
16,570
 
Available-for-sale
securities, at fair value
 
 
18,289
 
  
19,094
 
Investments, at fair value
 
 
62,655
 
  
57,827
 
Held-to-maturity
securities
 
 
5,756
 
  
5,825
 
Equity method investments
 
 
283
 
  
285
 
Total investments
 
 
$68,694
 
  
$63,937
 
 
 
Equity Securities and Debt Instruments, at Fair Value
Equity securities and debt instruments, at fair value are accounted for at fair value either under the fair value option or in accordance with other U.S. GAAP, and the related fair value gains and losses are recognized in earnings.
Equity Securities, at Fair Value.
Equity securities, at fair value consists of the firm’s public and private equity-related investments in corporate and real estate entities.
The table below presents information about equity securities, at fair value.
 
         
    
 
As of
 
       
$ in millions
 
March
2020
 
 
December
2019
 
Equity securities, at fair value
 
 
$21,221
 
  
$22,163
 
 
Equity Type
 
 
 
  
 
Public equity
 
 
10%
 
  
11%
 
Private equity
 
 
90%
 
  
89%
 
Total
 
 
100%
 
  
100%
 
Asset Class
 
 
 
  
 
Corporate
 
 
77%
 
  
79%
 
Real estate
 
 
23%
 
  
21%
 
Total
 
 
100%
 
  
100%
 
Region
 
 
 
  
 
Americas
 
 
46%
 
  
50%
 
EMEA
 
 
19%
 
  
17%
 
Asia
 
 
35%
 
  
33%
 
Total
 
 
100%
 
  
100%
 
 
 
   
29
 
Goldman Sachs March 2020 Form 10-Q
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
In the table above:
 
•
Equity securities, at fair value included investments accounted for at fair value under the fair value option where the firm would otherwise apply the equity method of accounting of $8.04 billion as of March 2020 and $8.23 billion as of December 2019. Gains recognized by the firm as a result of changes in the fair value of equity securities for which the fair value option was elected was $77 million for the three months ended March 2020 and $165 million for the three months ended March 2019. These gains are included in other principal transactions in the consolidated statements of earnings.
 
 
 
•
Equity securities, at fair value included $2.71 billion as of March 2020 and $3.22 billion as of December 2019 of investments in funds that are measured at NAV.
 
 
 
•
EMEA represents Europe, Middle East and Africa.
 
 
Debt Instruments, at Fair Value.
Debt instruments, at fair value primarily includes mezzanine
,
senior and distressed debt.
The table below presents information about debt instruments, at fair value.
 
         
    
 
As of
 
       
$ in millions
 
March
2020
 
 
December
2019
 
Corporate debt securities
 
 
$  9,923
 
  
$10,838
 
Securities backed by real estate
 
 
2,560
 
  
2,619
 
Money market instruments
 
 
9,332
 
  
1,681
 
Other
 
 
1,330
 
  
1,432
 
Total
 
 
$23,145
 
  
$16,570
 
 
 
In the table above:
 
•
Money market instruments primarily includes commercial paper, certificates of deposit and time deposits. The increase in money market instruments from December 2019 to March 2020 was primarily related to the firm’s purchase of commercial paper and certificates of deposit from affiliated and non-affiliated money market funds. See Note 22 for further information about purchases by Goldman Sachs Bank USA (GS Bank USA) from two affiliated money market funds.
 
 
 
•
Other included $840 million as of March 2020 and $983 million as of December 2019 of investments in credit funds that are measured at NAV.
 
 
Investments in Funds at Net Asset Value Per Share.
Equity securities and debt instruments, at fair value include investments in funds that are measured at NAV of the investment fund. The firm uses NAV to measure the fair value of fund investments when (i) the fund investment does not have a readily determinable fair value and (ii) the NAV of the investment fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the investments at fair value.
Substantially all of the firm’s investments in funds at NAV consist of investments in firm-sponsored private equity, credit, real estate and hedge funds where the firm
co-invests
with third-party investors.
Private equity funds primarily invest in a broad range of industries worldwide, including leveraged buyouts, recapitalizations, growth investments and distressed investments. Credit funds generally invest in loans and other fixed income instruments and are focused on providing private high-yield capital for leveraged and management buyout transactions, recapitalizations, financings, refinancings, acquisitions and restructurings for private equity firms, private family companies and corporate issuers. Real estate funds invest globally, primarily in real estate companies, loan portfolios, debt recapitalizations and property. Private equity, credit and real estate funds are
closed-end
funds in which the firm’s investments are generally not eligible for redemption. Distributions will be received from these funds as the underlying assets are liquidated or distributed, the timing of which is uncertain.
The firm also invests in hedge funds, primarily multi-disciplinary hedge funds that employ a fundamental
bottom-up
investment approach across various asset classes and strategies. The firm’s investments in hedge funds primarily include interests where the underlying assets are illiquid in nature, and proceeds from redemptions will not be received until the underlying assets are liquidated or distributed, the timing of which is uncertain.
Private equity, hedge and real estate funds described above are primarily “covered funds” as defined in the Volcker Rule of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The Board of Governors of the Federal Reserve System (FRB) extended the conformance period to July 2022 for the firm’s investments in, and relationships with, certain legacy “illiquid funds” (as defined in the Volcker Rule) that were in place prior to December 2013. This extension is applicable to substantially all of the firm’s remaining investments in, and relationships with, such covered funds. Substantially all of the credit funds described above are not covered funds.
   
Goldman Sachs March 2020 Form 10-Q
 
30
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents the fair value of investments in funds at NAV and the related unfunded commitments.
 
       
$ in millions
 
Fair Value of
Investments
  
Unfunded
Commitments
 
As of March 2020
 
 
 
  
 
Private equity funds
 
 
$2,285
 
 
 
$  
 
753
 
Credit funds
 
 
840
 
 
 
730
 
Hedge funds
 
 
106
 
 
 
–
 
Real estate funds
 
 
314
 
 
 
194
 
Total
 
 
$3,545
 
 
 
$1,677
 
 
As of December 2019
 
 
 
  
 
Private equity funds
  
$2,767
   
$   765
 
Credit funds
  
983
   
820
 
Hedge funds
  
125
   
–
 
Real estate funds
  
331
   
196
 
Total
  
$4,206
   
$1,781
 
Available-for-Sale
Securities
Available-for-sale
securities are accounted for at fair value, and the related unrealized fair value gains and losses are included in accumulated other comprehensive income/(loss).
The table below presents information about
available-for-sale
securities by tenor.
 
             
$ in millions
  
Amortized
Cost
   
Fair
Value
   
Weighted
Average
Yield
 
As of March 2020
 
 
 
  
   
 
Less than 5 years
 
 
$14,038
 
 
 
$14,472
 
 
 
1.53%
 
Greater than 5 years
 
 
3,505
 
 
 
3,817
 
 
 
1.85%
 
Total
 
 
$17,543
 
 
 
$18,289
 
 
 
1.59%
 
 
As of December 2019
 
 
 
  
   
 
Less than 5 years
  
$14,063
   
$14,041
   
1.53%
 
Greater than 5 years
  
4,974
   
5,053
   
2.10%
 
Total
  
$19,037
   
$19,094
   
1.68%
 
In the table above:
 
•
Available-for-sale
securities consists of U.S. government obligations that were classified in level 1 of the fair value hierarchy as of both March 2020 and December 2019.
 
•
The firm sold
available-for-sale
securities of $1.45 billion during the three months ended March 2020 and $4.96 billion during the three months ended March 2019. The realized gains on sales of such securities were $265 million for the three months ended March 2020 and $36 million for the three months ended March 2019, and were included in the consolidated statements of earnings.
 
•
The gross unrealized gains included in accumulated other comprehensive income/(loss) were $746 million as of March 2020 and $137 million as of December 2019. The gross unrealized losses included in accumulated other comprehensive income/(loss) were not material as of December 2019.
•
Beginning in January 2020,
available-for-sale
securities are reviewed to determine if an allowance for credit losses should be recorded in the consolidated statements of earnings. The firm considers various factors in such determination, including market conditions, changes in issuer credit ratings, severity of the unrealized losses, and the intent and ability to hold the security until recovery. See Note 3 for further information
about
 the adoption of CECL. Prior to January 2020, such securities were reviewed for other-than-temporary impairment. The firm did not record any provision for credit losses on such securities during the three months ended March 2020 and there was no other-than-temporary impairment during the year ended December 2019.
Fair Value of Investments by Level
The table below presents investments accounted for at fair value by level within the fair value hierarchy.
 
                 
$ in millions
  
Level 1
   
Level 2
   
Level 3
   
Total
 
As of March 2020
  
   
   
 
Government and agency obligations:
  
   
   
 
U.S.
 
 
$18,289
 
 
 
$         –
 
 
 
$         –
 
 
 
$18,289
 
Non-U.S.
 
 
–
 
 
 
23
 
 
 
–
 
 
 
23
 
Corporate debt securities
 
 
54
 
 
 
2,720
 
 
 
7,149
 
 
 
9,923
 
Securities backed by real estate
 
 
–
 
 
 
1,785
 
 
 
775
 
 
 
2,560
 
Money market instruments
 
 
29
 
 
 
9,303
 
 
 
–
 
 
 
9,332
 
Other debt obligations
 
 
–
 
 
 
39
 
 
 
428
 
 
 
467
 
Equity securities
 
 
236
 
 
 
7,224
 
 
 
11,056
 
 
 
18,516
 
Subtotal
 
 
$18,608
 
 
 
$21,094
 
 
 
$19,408
 
 
 
$59,110
 
Investments in funds at NAV
 
 
 
 
 
 
 
 
 
 
 
3,545
 
Total investments
 
 
 
 
 
 
 
 
 
 
 
$62,655
 
 
As of December 2019
 
 
 
  
   
   
 
Government and agency obligations:
  
   
   
 
U.S.
  
$19,094
   
$
 
        –
   
$
 
         –
   
$19,094
 
Non-U.S.
  
–
   
36
   
–
   
36
 
Corporate debt securities
  
48
   
7,325
   
3,465
   
10,838
 
Securities backed by real estate
  
–
   
2,024
   
595
   
2,619
 
Money market instruments
  
732
   
949
   
–
   
1,681
 
Other debt obligations
  
–
   
94
   
319
   
413
 
Equity securities
  
251
   
7,786
   
10,903
   
18,940
 
Subtotal
  
$20,125
   
$18,214
   
$15,282
   
$53,621
 
Investments in funds at NAV
 
 
 
  
   
   
4,206
 
Total investments
 
 
 
  
   
   
$57,827
 
See Note 4 for an overview of the firm’s fair value measurement policies and the valuation techniques and significant inputs used to determine the fair value of investments.
31
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Significant Unobservable Inputs
The table below presents the amount of level 3 investments, and ranges and weighted averages of significant unobservable inputs used to value such investments.
 
    
 
Level 3 Assets and Range of Significant Unobservable
Inputs (Weighted Average) as of
 
       
$ in millions
 
March
2020
 
 
December
2019
 
Corporate debt securities
 
Level 3 assets
 
 
$7,149
 
  
$3,465
 
Yield
 
 
4.6% to 25.2% (11.8%
)
  
5.5% to 29.8% (12.0%
)
Recovery rate
 
 
40.0% to 100.0% (65.8%
)
  
25.0% to 100.0% (68.5%
)
Duration (years)
 
 
1.5 to 8.0 (4.0
)
  
2.9 to 5.9 (5.0
)
Multiples
 
 
0.6x to 39.7x (7.4x
)
  
0.6x to 24.4x (7.0x
)
Securities backed by real estate
 
Level 3 assets
 
 
$775
 
  
$595
 
Yield
 
 
10.0% to 20.3% (15.8%
)
  
9.4% to 20.3% (16.0%
)
Recovery rate
 
 
25.0% to 35.0% (33.5%
)
  
33.1% to 34.4% (33.5%
)
Duration (years)
 
 
0.4 to 3.7 (2.3
)
 
  
0.4 to 3.0 (0.9
)
Other debt obligations
 
Level 3 assets
 
 
$428
 
  
$319
 
Yield
 
 
3.2% to 6.0% (4.2%
)
  
3.4% to 5.2% (4.5%
)
Duration (years)
 
 
3.7 to 9.8 (6.8
)
  
4.0 to 8.0 (6.7
)
Equity securities
 
Level 3 assets
 
 
$11,056
 
  
$10,903
 
Multiples
 
 
0.5x to 23.8x (8.0x
)
  
0.8x to 36.0x (8.0x
)
Discount rate/yield
 
 
4.9% to 20.3% (14.0%
)
  
2.1% to 20.3% (13.4%
)
Capitalization rate
 
 
3.7% to 16.0% (5.9%
)
  
3.6% to 15.1% (6.1%
)
In the table above:
 
•
Ranges represent the significant unobservable inputs that were used in the valuation of each type of investment.
 
•
Weighted averages are calculated by weighting each input by the relative fair value of the investment.
 
•
The ranges and weighted averages of these inputs are not representative of the appropriate inputs to use when calculating the fair value of any one investment. For example, the highest multiple for private equity securities is appropriate for valuing a specific private equity security but may not be appropriate for valuing any other private equity security. Accordingly, the ranges of inputs do not represent uncertainty in, or possible ranges of, fair value measurements of level 3 investments.
 
•
Increases in yield, discount rate, capitalization rate or duration used in the valuation of level 3 investments would have resulted in a lower fair value measurement, while increases in recovery rate or multiples would have resulted in a higher fair value measurement as of both March 2020 and December 2019. Due to the distinctive nature of each level 3 investment, the interrelationship of inputs is not necessarily uniform within each product type.
 
•
Corporate debt securities, securities backed by real estate and other debt obligations are valued using discounted cash flows, and equity securities are valued using market comparables and discounted cash flows.
•
The fair value of any one instrument may be determined using multiple valuation techniques. For example, market comparables and discounted cash flows may be used together to determine fair value. Therefore, the level 3 balance encompasses both of these techniques.
Level 3 Rollforward
The table below presents a summary of the changes in fair value for level 3 investments.
 
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Beginning balance
 
 
$15,282
 
  
$13,548
 
Net realized gains/(losses)
 
 
75
 
  
35
 
Net unrealized gains/(losses)
 
 
(1,284
)
  
239
 
Purchases
 
 
348
 
  
217
 
Sales
 
 
(197
)
  
(37
)
Settlements
 
 
(325
)
  
(232
)
Transfers into level 3
 
 
6,480
 
  
967
 
Transfers out of level 3
 
 
(971
)
  
(461
)
Ending balance
 
 
$19,408
 
  
$14,276
 
In the table above:
 
•
Changes in fair value are presented for all investments that are classified in level 3 as of the end of the period.
 
•
Net unrealized gains/(losses) relates to investments that were still held at
period-end.
 
•
Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. If an investment was transferred to level 3 during a reporting period, its entire gain or loss for the period is classified in level 3.
 
•
For level 3 investments, increases are shown as positive amounts, while decreases are shown as negative amounts.
Goldman Sachs March 2020 Form 10-Q
 
32
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents information, by product type, for investments included in the summary table above.
 
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Corporate debt securities
 
 
 
  
 
Beginning balance
 
 
$  3,465
 
  
$  2,540
 
Net realized gains/(losses)
 
 
50
 
  
11
 
Net unrealized gains/(losses)
 
 
(465
)
  
50
 
Purchases
 
 
69
 
  
86
 
Sales
 
 
(174
)
  
–
 
Settlements
 
 
(166
)
  
(42
)
Transfers into level 3
 
 
4,394
 
  
260
 
Transfers out of level 3
 
 
(24
)
  
(214
)
Ending balance
 
 
$  7,149
 
  
$  2,691
 
Securities backed by real estate
 
 
 
  
 
Beginning balance
 
 
$    
 
595
 
  
$     457
 
Net realized gains/(losses)
 
 
6
 
  
2
 
Net unrealized gains/(losses)
 
 
(72
)
  
7
 
Purchases
 
 
52
 
  
–
 
Settlements
 
 
(12
)
  
(33
)
Transfers into level 3
 
 
206
 
  
–
 
Transfers out of level 3
 
 
–
 
  
(22
)
Ending balance
 
 
$    
 
775
 
  
$     411
 
Equity securities
 
 
 
  
 
Beginning balance
 
 
$10,903
 
  
$10,335
 
Net realized gains/(losses)
 
 
17
 
  
22
 
Net unrealized gains/(losses)
 
 
(766
)
  
182
 
Purchases
 
 
227
 
  
112
 
Sales
 
 
(23
)
  
(36
)
Settlements
 
 
(145
)
  
(157
)
Transfers into level 3
 
 
1,790
 
  
707
 
Transfers out of level 3
 
 
(947
)
  
(225
)
Ending balance
 
 
$11,056
 
  
$10,940
 
Other debt obligations
 
 
 
  
 
Beginning balance
 
 
$    
 
319
 
  
$     216
 
Net realized gains/(losses)
 
 
2
 
  
–
 
Net unrealized gains/(losses)
 
 
19
 
  
–
 
Purchases
 
 
–
 
  
19
 
Sales
 
 
–
   
(1
)
Settlements
 
 
(2
)
  
–
 
Transfers into level 3
 
 
90
 
  
–
 
Ending balance
 
 
$    
 
428
 
  
$     234
 
Level 3 Rollforward Commentary
Three Months Ended March 2020.
The net realized and unrealized losses on level 3 investments of $1.21 billion (reflecting $75 million of net realized gains and $1.28 billion of net unrealized losses) for the three months ended March 2020 included gains/(losses) of $(1.29) billion reported in other principal transactions and $77 million reported in interest income.
The net unrealized losses on level 3 investments for the three months ended March 2020 primarily reflected losses on certain private equity securities and corporate debt securities, principally driven by weak corporate performance.
Transfers into level 3 investments during the three months ended March 2020 primarily reflected transfers of certain corporate debt securities and private equity securities from level 2, principally due to certain unobservable yield and duration inputs becoming significant to the valuation of these instruments and as a result of a lack of market evidence, including fewer transactions in these instruments.
Transfers out of level 3 investments during the three months ended March 2020 primarily reflected transfers of certain private equity securities to level 2, principally due to increased price transparency as a result of market evidence, including market transactions in these instruments.
Three Months Ended March 2019.
The net realized and unrealized gains on level 3 investments of $274 million (reflecting $35 million of net realized gains and $239 million of net unrealized gains) for the three months ended March 2019 included gains of $227 million reported in other principal transactions and $47 million reported in interest income.
The net unrealized gains on level 3 investments for the three months ended March 2019 primarily reflected gains on certain private equity securities, principally driven by company-specific events and corporate performance.
Transfers into level 3 investments during the three months ended March 2019 primarily reflected transfers of certain private equity securities and corporate debt from level 2, principally due to reduced price transparency as a result of a lack of market evidence, including fewer transactions in these instruments.
Transfers out of level 3 investments during the three months ended March 2019 primarily reflected transfers of certain private equity securities and corporate debt securities to level 2, principally due to increased price transparency as a result of market evidence, including market transactions in these instruments.
33
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Held-to-Maturity
Securities
Held-to-maturity
securities are accounted for at amortized cost.
The table below presents information about
held-to-maturity
securities by type and tenor.
 
             
$ in millions
  
Amortized Cost
   
Fair Value
   
Weighted Average Yield
 
As of March 2020
 
 
 
  
   
 
Less than 5 years
 
 
$3,531
 
 
 
$3,751
 
 
 
2.40%
 
Greater than 5 years
 
 
1,524
 
 
 
1,680
 
 
 
2.25%
 
Total U.S. government obligations
 
 
5,055
 
 
 
5,431
 
 
 
2.35%
 
Less than 5 years
 
 
5
 
 
 
5
 
 
 
3.91%
 
Greater than 5 years
 
 
696
 
 
 
688
 
 
 
1.62%
 
Total securities backed by real estate
 
 
701
 
 
 
693
 
 
 
1.64%
 
Total
held-to-maturity
securities
 
 
$5,756
 
 
 
$6,124
 
 
 
2.27%
 
 
As of December 2019
 
 
 
  
   
 
Less than 5 years
  
$3,534
   
$3,613
   
2.40%
 
Greater than 5 years
  
1,534
   
1,576
   
2.25%
 
Total U.S. government obligations
  
5,068
   
5,189
   
2.35%
 
Less than 5 years
  
6
   
6
   
4.16%
 
Greater than 5 years
  
751
   
769
   
1.67%
 
Total securities backed by real estate
  
757
   
775
   
1.69%
 
Total
held-to-maturity
securities
  
$5,825
   
$5,964
   
2.27%
 
In the table above:
 
•
Substantially all of the securities backed by real estate consist of securities backed by residential real estate.
 
•
As these securities are not accounted for at fair value, they are not included in the firm’s fair value hierarchy in Notes 4 through 10. Had these securities been included in the firm’s fair value hierarchy, U.S. government obligations would have been classified in level 1 and substantially all securities backed by real estate would have been classified in level 2 of the fair value hierarchy as of both March 2020 and December 2019.
 
•
The gross unrealized gains were $395 million as of March 2020 and $141 million as of December 2019. The gross unrealized losses were not material as of both March 2020 and December 2019.
 
•
Beginning in January 2020,
 
held-to-maturity
securities are reviewed to determine if an allowance for credit loss should be recorded in the consolidated statements of earnings. The firm considers various factors in such determination, including market conditions, changes in issuer credit ratings, historical credit losses and sovereign guarantees. See Note 3 for further information about the adoption of CECL. Prior to January 2020, such securities were reviewed for other-than-temporary impairment. The firm did not record any provision for credit losses on such securities during the three months ended March 2020 and there was no other-than-temporary impairment during the year ended December 2019.
Note 9.
Loans
Loans include (i) loans held for investment that are accounted for at amortized cost net of allowance for loan losses or at fair value under the fair value option and (ii) loans held for sale that are accounted for at the lower of cost or fair value. Interest on loans is recognized over the life of the loan and is recorded on an accrual basis.
The table below presents information about loans.
 
                 
$ in millions
  
Amortized Cost
   
Fair Value
   
Held For Sale
   
Total
 
As of March 2020
 
 
 
  
   
   
 
Loan Type
 
 
 
  
   
   
 
Corporate
 
 
$  63,697
 
 
 
$  2,915
 
 
 
$1,918
 
 
 
$  68,530
 
Wealth management
 
 
21,183
 
 
 
7,834
 
 
 
–
 
 
 
29,017
 
Commercial real estate
 
 
14,165
 
 
 
2,005
 
 
 
660
 
 
 
16,830
 
Residential real estate
 
 
3,911
 
 
 
474
 
 
 
28
 
 
 
4,413
 
Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
Installment
 
 
4,826
 
 
 
–
 
 
 
–
 
 
 
4,826
 
Credit cards
 
 
2,081
 
 
 
–
 
 
 
–
 
 
 
2,081
 
Other
 
 
4,472
 
 
 
601
 
 
 
551
 
 
 
5,624
 
Total loans, gross
 
 
114,335
 
 
 
13,829
 
 
 
3,157
 
 
 
131,321
 
Allowance for loan losses
 
 
(2,868
)
 
 
–
 
 
 
–
 
 
 
(2,868
)
Total loans
 
 
$111,467
 
 
 
$13,829
 
 
 
$3,157
 
 
 
$128,453
 
 
As of December 2019
 
 
 
  
   
   
 
Loan Type
 
 
 
  
   
   
 
Corporate
  
$  41,129
   
$  3,224
   
$1,954
   
$  46,307
 
Wealth management
  
20,116
   
7,824
   
–
   
27,940
 
Commercial real estate
  
13,258
   
1,876
   
2,609
   
17,743
 
Residential real estate
  
6,132
   
792
   
34
   
6,958
 
Consumer:
 
 
 
  
   
   
 
Installment
  
4,747
   
–
   
–
   
4,747
 
Credit cards
  
1,858
   
–
   
–
   
1,858
 
Other
  
3,396
   
670
   
726
   
4,792
 
Total loans, gross
  
90,636
   
14,386
   
5,323
   
110,345
 
Allowance for loan losses
  
(1,441
)  
–
   
–
   
(1,441
)
Total loans
  
$  89,195
   
$14,386
   
$5,323
   
$108,904
 
The following is a description of the loan types in the table above:
 
•
Corporate.
Corporate loans includes term loans, revolving lines of credit, letter of credit facilities and bridge loans, and are principally used for operating and general corporate purposes, or in connection with acquisitions. Corporate loans may be secured or unsecured, depending on the loan purpose, the risk profile of the borrower and other factors.
 
•
Wealth Management.
Wealth management loans includes loans extended to private bank clients, including wealth management and other clients. These loans are used to finance investments in both financial and nonfinancial assets, bridge cash flow timing gaps or provide liquidity for other needs. Substantially all of such loans are secured by securities, residential real estate, commercial real estate or other assets.
Goldman Sachs March 2020 Form 10-Q
 
34
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
•
Commercial Real Estate.
Commercial real estate loans includes loans extended by the firm (other than to private bank clients) that are directly or indirectly secured by hotels, retail stores, multifamily housing complexes and commercial and industrial properties. Commercial real estate loans also includes loans extended to clients who warehouse assets that are directly or indirectly backed by commercial real estate. In addition, commercial real estate includes loans purchased by the firm.
 
•
Residential Real Estate.
Residential real estate loans primarily includes loans extended by the firm to clients (other than private bank clients) who warehouse assets that are directly or indirectly secured by residential real estate and loans purchased by the firm.
 
•
Installment.
Installment loans are unsecured and are originated by the firm.
 
•
Credit Cards.
Credit card loans are loans made pursuant to revolving lines of credit issued to consumers by the firm.
 
•
Other.
Other loans primarily includes loans extended to clients who warehouse assets that are directly or indirectly secured by consumer loans, including auto loans and private student loans. Other loans also includes unsecured consumer and credit card loans purchased by the firm.
Loans accounted for at amortized cost included PCI loans with a carrying value of $1.62 billion (outstanding principal balance of $3.23 billion and accretable yield of $220 million) as of December 2019, which were secured by commercial and residential real estate. In January 2020, the firm elected the fair value option for these PCI loans in accordance with ASU No.
 2016-13.
These loans were primarily transferred to trading assets. See Note 3 for further information about adoption of this ASU.
Credit Quality
Risk Assessment.
The firm’s risk assessment process includes evaluating the credit quality of its loans. For corporate loans and a majority of wealth management, real estate and other loans, the firm performs credit reviews which include initial and ongoing analyses of its borrowers, resulting in an internal credit rating. A credit review is an independent analysis of the capacity and willingness of a borrower to meet its financial obligations and is performed on an annual basis or more frequently if circumstances change that indicate that a review may be necessary. The determination of internal credit ratings also incorporates assumptions with respect to the nature of and outlook for the borrower’s industry and the economic environment.
The table below presents gross loans by an internally determined public rating agency equivalent or other credit metrics and the concentration of secured and unsecured loans.
 
                 
$ in millions
  
Investment-
Grade
   
Non-Investment-
Grade
   
Other/
Unrated
   
Total
 
As of March 2020
 
 
 
  
   
   
 
Accounting Method
 
 
 
  
   
   
 
Amortized cost
 
 
$40,637
 
 
 
$64,397
 
 
 
$  9,301
 
 
 
$114,335
 
Fair value
 
 
2,386
 
 
 
4,640
 
 
 
6,803
 
 
 
13,829
 
Held for sale
 
 
257
 
 
 
2,044
 
 
 
856
 
 
 
3,157
 
Total
 
 
$43,280
 
 
 
$71,081
 
 
 
$16,960
 
 
 
$131,321
 
Loan Type
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
 
$18,972
 
 
 
$49,050
 
 
 
$
  
   508
 
 
 
$  68,530
 
Wealth management
 
 
20,393
 
 
 
4,275
 
 
 
4,349
 
 
 
29,017
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
478
 
 
 
14,179
 
 
 
2,173
 
 
 
16,830
 
Residential
 
 
259
 
 
 
2,875
 
 
 
1,279
 
 
 
4,413
 
Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
Installment
 
 
–
 
 
 
–
 
 
 
4,826
 
 
 
4,826
 
Credit cards
 
 
–
 
 
 
–
 
 
 
2,081
 
 
 
2,081
 
Other
 
 
3,178
 
 
 
702
 
 
 
1,744
 
 
 
5,624
 
Total
 
 
$43,280
 
 
 
$71,081
 
 
 
$16,960
 
 
 
$131,321
 
Secured
 
 
67%
 
 
 
90%
 
 
 
54%
 
 
 
78%
 
Unsecured
 
 
33%
 
 
 
10%
 
 
 
46%
 
 
 
22%
 
Total
 
 
100%
 
 
 
100%
 
 
 
100%
 
 
 
100%
 
 
As of December 2019
 
 
 
  
   
   
 
Accounting Method
  
   
   
   
 
Amortized cost
  
$30,266
   
$51,222
   
$  9,148
   
$  90,636
 
Fair value
  
2,844
   
5,174
   
6,368
   
14,386
 
Held for sale
  
323
   
4,368
   
632
   
5,323
 
Total
  
$33,433
   
$60,764
   
$16,148
   
$110,345
 
Loan Type
  
   
   
   
 
Corporate
  
$10,507
   
$35,509
   
$     291
   
$  46,307
 
Wealth management
  
20,001
   
3,576
   
4,363
   
27,940
 
Real estate:
  
   
   
   
 
Commercial
  
306
   
15,997
   
1,440
   
17,743
 
Residential
  
244
   
4,600
   
2,114
   
6,958
 
Consumer:
  
   
   
   
 
Installment
  
–
   
–
   
4,747
   
4,747
 
Credit cards
  
–
   
–
   
1,858
   
1,858
 
Other
  
2,375
   
1,082
   
1,335
   
4,792
 
Total
  
$33,433
   
$60,764
   
$16,148
   
$110,345
 
Secured
  
83%
   
91%
   
54%
   
83%
 
Unsecured
  
17%
   
9%
   
46%
   
17%
 
Total
  
100%
   
100%
   
100%
   
100%
 
35
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
In the table above:
 
•
Substantially all of the other/unrated wealth management loans consists of loans backed by residential real estate, and real estate and other loans primarily consists of purchased real estate
-
backed, consumer and credit card loans. The firm’s risk assessment process for these loans includes reviewing certain key metrics, such as
loan-to-value
ratio, delinquency status, collateral values, expected cash flows, the Fair Isaac Corporation (FICO) credit score and other risk factors.
 
•
Installment and credit card loans represent loans originated by the firm. An important credit-quality indicator for such loans is the FICO credit score, which measures a borrower’s creditworthiness by considering factors such as payment and credit history. FICO credit scores are refreshed by the firm to assess the updated creditworthiness of the borrower.
The table below presents gross installment and credit card loans and the concentration by refreshed FICO credit score.
 
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Installment, gross
 
 
$4,826
 
  
$4,747
 
Credit cards, gross
 
 
2,081
 
  
1,858
 
Total
 
 
$6,907
 
  
$6,605
 
 
Refreshed FICO credit score
 
 
 
  
 
Greater than or equal to 660
 
 
82%
 
  
85%
 
Less than 660
 
 
18%
 
  
15%
 
Total
 
 
100%
 
  
100%
 
In March 2020, in response to the global outbreak of the coronavirus (COVID-19) pandemic, the firm announced a customer assistance program providing borrowers of installment and credit card loans the flexibility to defer a payment for up to two months at no cost. The impact of this program was not material to the firm’s results for the three months ended March 2020.
The firm also assigns a regulatory risk rating to its loans based on the definitions provided by the U.S. federal bank regulatory agencies. Total loans included 91% of loans as of both March 2020 and December 2019 that were rated pass/non-criticized.
Vintage.
The table below presents gross loans accounted for at amortized cost (excluding originated installment and credit card loans) by an internally determined public rating agency equivalent or other credit metrics and by origination year for term loans.
 
    
 
As of March 2020
 
                 
$ in millions
 
 
Investment- Grade
 
 
 
Non-Investment-
Grade
 
 
 
Other/ Unrated
 
 
 
Total
 
    
2020
 
 
$  1,151
 
 
 
$  2,522
 
 
 
$       –
 
 
 
$    3,673
 
2019
 
 
1,648
 
 
 
8,081
 
 
 
18
 
 
 
9,747
 
2018
 
 
2,383
 
 
 
4,277
 
 
 
–
 
 
 
6,660
 
2017
 
 
883
 
 
 
3,977
 
 
 
–
 
 
 
4,860
 
2016
 
 
165
 
 
 
1,626
 
 
 
–
 
 
 
1,791
 
2015 or earlier
 
 
435
 
 
 
2,648
 
 
 
–
 
 
 
3,083
 
Revolving
 
 
11,617
 
 
 
22,240
 
 
 
26
 
 
 
33,883
 
Corporate
 
 
$18,282
 
 
 
$45,371
 
 
 
$    
 
44
 
 
 
$  63,697
 
2020
 
 
$    
 
172
 
 
 
$      
 
45
 
 
 
$       –
 
 
 
$      
 
217
 
2019
 
 
532
 
 
 
398
 
 
 
–
 
 
 
930
 
2018
 
 
393
 
 
 
90
 
 
 
–
 
 
 
483
 
2017
 
 
400
 
 
 
75
 
 
 
–
 
 
 
475
 
2016
 
 
30
 
 
 
65
 
 
 
–
 
 
 
95
 
2015 or earlier
 
 
540
 
 
 
208
 
 
 
–
 
 
 
748
 
Revolving
 
 
16,663
 
 
 
1,557
 
 
 
15
 
 
 
18,235
 
Wealth management
 
 
$18,730
 
 
 
$  2,438
 
 
 
$    
 
15
 
 
 
$  21,183
 
2020
 
 
$         –
 
 
 
$    
 
632
 
 
 
$    
 
64
 
 
 
$      
 
696
 
2019
 
 
57
 
 
 
1,870
 
 
 
27
 
 
 
1,954
 
2018
 
 
195
 
 
 
2,484
 
 
 
19
 
 
 
2,698
 
2017
 
 
18
 
 
 
1,718
 
 
 
25
 
 
 
1,761
 
2016
 
 
–
 
 
 
180
 
 
 
12
 
 
 
192
 
2015 or earlier
 
 
–
 
 
 
589
 
 
 
691
 
 
 
1,280
 
Revolving
 
 
–
 
 
 
5,584
 
 
 
–
 
 
 
5,584
 
Commercial real estate
 
 
$    
 
270
 
 
 
$13,057
 
 
 
$  
 
838
 
 
 
$  14,165
 
2020
 
 
$         –
 
 
 
$      
 
92
 
 
 
$    
 
18
 
 
 
$
 
     
 
110
 
2019
 
 
–
 
 
 
707
 
 
 
251
 
 
 
958
 
2018
 
 
–
 
 
 
169
 
 
 
316
 
 
 
485
 
2017
 
 
179
 
 
 
95
 
 
 
169
 
 
 
443
 
2016
 
 
–
 
 
 
524
 
 
 
–
 
 
 
524
 
2015 or earlier
 
 
–
 
 
 
–
 
 
 
70
 
 
 
70
 
Revolving
 
 
79
 
 
 
1,242
 
 
 
–
 
 
 
1,321
 
Residential real estate
 
 
$    
 
258
 
 
 
$  2,829
 
 
 
$  
 
824
 
 
 
$    3,911
 
2020
 
 
$         –
 
 
 
$      
 
22
 
 
 
$  
 
480
 
 
 
$      
 
502
 
2019
 
 
–
 
 
 
45
 
 
 
57
 
 
 
102
 
2018
 
 
–
 
 
 
53
 
 
 
13
 
 
 
66
 
2017
 
 
–
 
 
 
19
 
 
 
5
 
 
 
24
 
2016
 
 
–
 
 
 
1
 
 
 
–
 
 
 
1
 
Revolving
 
 
3,097
 
 
 
562
 
 
 
118
 
 
 
3,777
 
Other
 
 
$  3,097
 
 
 
$    
 
702
 
 
 
$  
 
673
 
 
 
$    4,472
 
Total
 
 
$40,637
 
 
 
$64,397
 
 
 
$2,394
 
 
 
$107,428
 
In the table above, revolving loans which converted to term loans were not material as of March 2020.
Goldman Sachs March 2020 Form 10-Q
 
36
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents gross originated installment loans by origination year and credit card revolving loans.
 
         
         
$ in millions
 
 
 
 
 
 
As of
March 2020
 
2020
 
 
 
  
$
  
 723
 
2019
 
 
 
  
2,043
 
2018
 
 
 
  
1,686
 
2017
 
 
 
  
355
 
2016
 
 
 
  
19
 
Revolving
 
 
 
  
2,081
 
Total
 
 
 
 
  
$6,907
 
 
 
 
 
 
 
Credit Concentrations.
The table below presents the concentration of gross loans by region.
 
                     
                     
$ in millions
  
Carrying
Value
   
Americas
   
EMEA
   
Asia
   
Total
 
As of March 2020
 
 
 
  
   
   
   
 
Corporate
 
 
$  68,530
 
  
67%
   
26%
   
7%
   
100%
 
Wealth management
 
 
29,017
 
  
88%
   
9%
   
3%
   
100%
 
Commercial real estate
 
 
16,830
 
  
69%
   
21%
   
10%
   
100%
 
Residential real estate
 
 
4,413
 
  
87%
   
11%
   
2%
   
100%
 
Consumer:
 
 
 
  
   
   
   
 
Installment
 
 
4,826
 
  
100%
   
–
   
–
   
100%
 
Credit cards
 
 
2,081
 
  
100%
   
–
   
–
   
100%
 
Other
 
 
5,624
 
  
87%
   
12%
   
1%
   
100%
 
Total
 
 
$131,321
 
  
75%
   
19%
   
6%
   
100%
 
 
As of December 2019
 
 
 
  
   
   
   
 
Corporate
  
$  46,307
   
60%
   
31%
   
9%
   
100%
 
Wealth management
  
27,940
   
88%
   
9%
   
3%
   
100%
 
Commercial real estate
  
17,743
   
69%
   
21%
   
10%
   
100%
 
Residential real estate
  
6,958
   
90%
   
9%
   
1%
   
100%
 
Consumer:
  
   
   
   
   
 
Installment
  
4,747
   
100%
   
–
   
–
   
100%
 
Credit cards
  
1,858
   
100%
   
–
   
–
   
100%
 
Other
  
4,792
   
87%
   
12%
   
1%
   
100%
 
Total
  
$110,345
   
73%
   
21%
   
6%
   
100%
 
 
 
 
 
 
 
 
The table below presents the concentration of gross corporate loans by industry.
 
         
    
 
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Corporate, gross
 
 
$68,530
 
  
$46,307
 
 
Industry
 
 
 
  
 
Consumer, Retail & Healthcare
 
 
17%
 
  
15%
 
Diversified Industrials
 
 
22%
 
  
17%
 
Financial Institutions
 
 
9%
 
  
10%
 
Funds
 
 
6%
 
  
9%
 
Natural Resources & Utilities
 
 
11%
 
  
12%
 
Real Estate
 
 
8%
 
  
7%
 
Technology, Media & Telecommunications
 
 
18%
 
  
17%
 
Other (including Special Purpose Vehicles)
 
 
9%
 
  
13%
 
Total
 
 
100%
 
  
100%
 
 
 
 
 
 
 
 
The table below presents the firm’s credit exposure from originated installment and credit card loans and the concentration by the five most concentrated U.S. states.
 
         
    
 
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Installment
 
 
$4,826
 
  
$4,747
 
 
California
 
 
12%
 
  
12%
 
Texas
 
 
9%
 
  
9%
 
New York
 
 
7%
 
  
7%
 
Florida
 
 
7%
 
  
7%
 
Illinois
 
 
4%
 
  
4%
 
Other
 
 
61%
 
  
61%
 
Total
 
 
100%
 
  
100%
 
 
Credit Cards
 
 
$2,081
 
  
$1,858
 
 
California
 
 
20%
 
  
21%
 
Texas
 
 
9%
 
  
9%
 
New York
 
 
8%
 
  
8%
 
Florida
 
 
8%
 
  
8%
 
Illinois
 
 
4%
 
  
4%
 
Other
 
 
51%
 
  
50%
 
Total
 
 
100%
 
  
100%
 
 
 
 
 
 
 
Nonaccrual and Past Due Loans.
Loans accounted for at amortized cost (other than credit card loans) are placed on nonaccrual status when it is probable that the firm will not collect all principal and interest due under the contractual terms, regardless of the delinquency status or if a loan is past due for 90 days or more, unless the loan is both well collateralized and in the process of collection. At that time, all accrued but uncollected interest is reversed against interest income and interest subsequently collected is recognized on a cash basis to the extent the loan balance is deemed collectible. Otherwise, all cash received is used to reduce the outstanding loan balance. A loan is considered past due when a principal or interest payment has not been made according to its contractual terms. Credit card loans are not placed on nonaccrual status and accrue interest until the loan is paid in full or is charged-off.
In certain circumstances, the firm may also modify the original terms of a loan agreement by granting a concession to a borrower experiencing financial difficulty. Such modifications are considered troubled debt restructurings and typically include interest rate reductions, payment extensions and modification of loan covenants.
   
37
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents information about past due loans.
 
             
             
$ in millions
  
30-89
 days
   
90 days
or more
   
Total
 
As of March 2020
 
 
 
  
   
 
Corporate
 
 
$
  66
 
 
 
$172
 
 
 
$
238
 
Wealth management
 
 
20
 
 
 
16
 
 
 
36
 
Commercial real estate
 
 
127
 
 
 
91
 
 
 
218
 
Residential real estate
 
 
11
 
 
 
23
 
 
 
34
 
Consumer:
 
 
 
 
 
 
 
 
 
Installment
 
 
65
 
 
 
23
 
 
 
88
 
Credit cards
 
 
35
 
 
 
39
 
 
 
74
 
Other
 
 
11
 
 
 
1
 
 
 
12
 
Total
 
 
$
335
 
 
 
$
365
 
 
 
$
700
 
 
Past due loans divided by gross loans at amortized cost
 
 
0.6%
 
 
As of December 2019
 
 
 
  
   
 
Corporate
  
$197
   
$  42
   
$239
 
Wealth management
  
13
   
15
   
28
 
Commercial real estate
  
54
   
123
   
177
 
Residential real estate
  
19
   
18
   
37
 
Consumer:
  
   
   
 
Installment
  
71
   
29
   
100
 
Credit cards
  
35
   
4
   
39
 
Other
  
6
   
1
   
7
 
Total
  
$395
   
$232
   
$627
 
 
Past due loans divided by gross loans at amortized cost
  
0.7%
 
 
 
 
 
 
 
The table below presents information about nonaccrual loans.
 
         
    
 
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December 2019
 
Corporate
 
 
$1,622
 
  
$1,122
 
Wealth management
 
 
53
 
  
52
 
Commercial real estate
 
 
155
 
  
175
 
Residential real estate
 
 
156
 
  
143
 
Installment
 
 
35
 
  
38
 
Total
 
 
$2,021
 
  
$1,530
 
 
Nonaccrual loans divided by gross loans at amortized cost
 
 
1.8%
 
  
1.7%
 
 
 
 
 
 
 
In the table above:
 
•
Nonaccrual loans included $502 million as of March 2020 and $429 million as of December 2019 of loans that were 30 days or more past due.
 
 
 
 
 
 
 
 
•
Loans that were 90 days or more past due and still accruing were not material as of both March 2020 and December 2019.
 
 
 
 
 
 
 
 
•
Nonaccrual loans included $302 million as of March 2020 and $251 million as of December 2019 of corporate loans that were modified in a troubled debt restructuring. The firm’s lending commitments related to these loans were not material as of both March 2020 and December 2019. Installment loans that were modified in a troubled debt restructuring were not material as of both March 2020 and December 2019.
 
 
 
 
 
 
 
Allowance for Credit Losses
The firm’s allowance for credit losses consists of the allowance for losses on loans and lending commitments accounted for at amortized cost. Loans and lending commitments accounted for at fair value or accounted for at the lower of cost or fair value are not subject to an allowance for credit losses.
The firm adopted ASU No. 2016-13 in January 2020, which replaced the incurred credit loss model for recognizing credit losses with the CECL model. As a result, the firm’s allowance for credit losses effective January 2020 reflects management’s estimate of credit losses over the remaining expected life of such loans and also considers forecasts of future economic conditions. Prior to January 2020, the allowance for credit losses reflected probable incurred credit losses. See Note 3 for further information about the adoption of CECL.
To determine the allowance for credit losses, the firm classifies its loans and lending commitments accounted for at amortized cost into wholesale and consumer portfolios. Prior to January 2020, the firm also had PCI loans which were classified as a separate portfolio. These portfolios represent the level at which the firm has developed and documented its methodology to determine the allowance for credit losses. The allowance for credit losses is measured on a collective basis for loans that exhibit similar risk characteristics using a modeled approach and asset-specific basis for loans that do not share similar risk characteristics.
Under CECL, the allowance for loan losses takes into account the weighted average of a range of forecasts of future economic conditions over the expected life of the loan. These forecasts include baseline, favorable and adverse economic scenarios. The allowance for loan losses also includes qualitative components which allow management to reflect the uncertain nature of economic forecasting and account for model imprecision.
Management’s estimate of loan losses entails judgment about loan collectability at the reporting dates, and there are uncertainties inherent in those judgments. While management uses the best information available to determine this estimate, future adjustments to the allowance may be necessary based on, among other things, changes in the economic environment or variances between actual results and the original assumptions used.
   
Goldman Sachs March 2020 Form 10-Q
 
38
 
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents gross loans and lending commitments accounted for at amortized cost by portfolio.
 
    
 
As of
 
         
 
March 2020
  
 
December 2019
 
                   
$ in millions
 
 
Loans
 
 
 
Lending Commitments
 
 
    
  
Loans
   
Lending Commitments
 
Wholesale
 
 
 
 
 
 
 
  
   
 
Corporate
 
 
$  63,697
 
 
 
$107,403
 
 
  
$41,129
   
$127,226
 
Wealth management
 
 
21,183
 
 
 
2,441
 
 
  
20,116
   
2,198
 
Commercial real estate
 
 
14,165
 
 
 
2,886
 
 
  
12,803
   
3,207
 
Residential real estate
 
 
3,911
 
 
 
1,293
 
 
  
4,965
   
759
 
Other
 
 
4,472
 
 
 
3,021
 
 
  
3,396
   
3,029
 
Consumer
 
 
 
 
 
 
 
  
   
 
Installment
 
 
4,826
 
 
 
10
 
 
  
4,747
   
12
 
Credit cards
 
 
2,081
 
 
 
16,447
 
 
  
1,858
   
13,669
 
PCI
 
 
–
 
 
 
–
 
 
  
1,622
   
–
 
Total
 
 
$114,335
 
 
 
$133,501
 
 
  
$90,636
   
$150,100
 
In the table above, wholesale loans included $1.99 billion as of March 2020 and $1.49 billion as of December 2019 of nonaccrual loans for which the allowance for credit losses was measured on an asset-specific basis. The allowance for credit losses on these loans was $327 million as of March 2020 and $207 million as of December 2019. These loans included $543 million as of March 2020 and $754 million as of December 2019 of loans which did not require a reserve as the loan was deemed to be recoverable.
See Note 18 for further information about lending commitments.
The following is a description of the methodology used to calculate the allowance for credit losses:
Wholesale.
The allowance for credit losses for wholesale loans and lending commitments that exhibit similar risk characteristics is measured on a collective basis and is calculated using a modeled approach. These models determine the probability of default and loss given default based on various risk factors, including internal credit ratings, industry default and loss data, contractual maturity, current macroeconomic indicators, the borrower’s capacity to meet its financial obligations, the borrower’s country of risk and industry, loan seniority and collateral type. For lending commitments, the methodology also considers probability of drawdowns or funding. In addition, for loans backed by real estate, risk factors include the loan-to-value ratio, debt service ratio and home price index. Under CECL, the allowance for loan losses for wholesale loans also takes into account the weighted average of a range of forecasts of future macroeconomic indicators over the expected life of the loan for a period of three years before reverting to historical average probability of default using a non-linear modeled approach. Key macroeconomic inputs to the forecast model include regional GDP, unemployment rates, credit spreads, commercial and industrial delinquency rates and commodities prices. In addition, the allowance for loan losses includes a qualitative component.
The allowance for loan losses for wholesale loans that do not share similar risk characteristics, such as nonaccrual loans or loans in a troubled debt restructuring, is measured on an asset-specific basis and is calculated using the present value of expected future cash flows discounted at the loan’s original effective rate, the observable market price of the loan or the fair value of the collateral.
Wholesale loans are charged-off against the allowance for loan losses when deemed to be uncollectible.
Consumer.
The allowance for credit losses for consumer loans that exhibit similar risk characteristics is measured on a collective basis and is calculated using a modeled approach. These models classify consumer loans into pools based on borrower-related and exposure-related characteristics that differentiate a pool’s risk characteristics from other pools. The factors considered in determining a pool are generally consistent with the risk characteristics used for internal credit risk measurement and management and include key metrics, such as FICO credit scores, delinquency status, loan vintage and macroeconomic indicators. Under CECL, the allowance for loan losses for consumer loans also takes into account the weighted average of a range of forecasts of future macroeconomic conditions, such as GDP and unemployment rates, to predict FICO scores and delinquency status migration over the expected life of a loan for a period of three years. For loans with maturities extending beyond three years, the model reverts to historical average loss rates using a non-linear modeled approach. In addition, the allowance for loan losses includes a qualitative component.
The allowance for credit losses for consumer loans in a troubled debt restructuring is calculated using the present value of expected future cash flows discounted at the loan’s original effective rate, the observable market price of the loan or the fair value of the collateral.
Installment loans are charged-off when they are 120 days past due. Credit card loans are charged-off when they are 180 days past due.
39
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents information about the allowance for credit losses.
 
                 
$ in millions
  
Wholesale
   
Consumer
   
PCI
   
Total
 
Three Months Ended March 2020
  
   
 
Allowance for loan losses
  
 
Beginning balance, reported
 
 
$  
 
879
 
 
 
$
  
393
 
 
 
$ 169
 
 
 
$1,441
 
Impact of CECL adoption
 
 
452
 
 
 
444
 
 
 
(169
)
 
 
727
 
Beginning balance, adjusted
 
 
1,331
 
 
 
837
 
 
 
–
 
 
 
2,168
 
Net charge-offs
 
 
(50
)
 
 
(81
)
 
 
–
 
 
 
(131
)
Provision
 
 
746
 
 
 
169
 
 
 
–
 
 
 
915
 
Other
 
 
(84
)
 
 
–
 
 
 
–
 
 
 
(84
)
Ending balance
 
 
$1,943
 
 
 
$
  
925
 
 
 
$
 
     –
 
 
 
$2,868
 
Allowance for losses on lending commitments
 
Beginning balance, reported
 
 
$  
 
361
 
 
 
$
  
    –
 
 
 
$
 
     –
 
 
 
$
 
  361
 
Impact of CECL adoption
 
 
(48
)
 
 
–
 
 
 
–
 
 
 
(48
)
Beginning balance, adjusted
 
 
313
 
 
 
–
 
 
 
–
 
 
 
313
 
Provision
 
 
22
 
 
 
–
 
 
 
–
 
 
 
22
 
Ending balance
 
 
$
 
  335
 
 
 
$
  
    –
 
 
 
$
 
     –
 
 
 
$
 
  335
 
 
Year Ended December 2019
  
   
 
Allowance for loan losses
  
 
Beginning balance
  
$   658
   
$ 292
   
$
  
116
   
$1,066
 
Net charge-offs
  
(121
)  
(317
)  
(52
)  
(490
)
Provision
  
469
   
418
   
103
   
990
 
Other
  
(127
)  
–
   
2
   
(125
)
Ending balance
  
$   879
   
$ 393
   
$
  
169
   
$1,441
 
Allowance for losses on lending commitments
 
Beginning balance
  
$   286
   
$
  
    –
   
$
  
    –
   
$   286
 
Provision
  
75
   
–
   
–
   
75
 
Ending balance
  
$   361
   
$
  
    –
   
$
  
    –
   
$   361
 
In the table above:
 
•
The impact of CECL adoption for wholesale and consumer loans is driven by the fact that the allowance under CECL covers expected credit losses over the full expected life of the loan portfolios and also considers forecasts of expected future economic conditions. The impact of CECL adoption for PCI loans was as a result of the firm electing to apply the fair value option for such loans.
 
•
Net charge-offs for wholesale loans were primarily related to corporate loans for both the three months ended March 2020 and the year ended December 2019. Net charge-offs for consumer loans were substantially all related to installment loans for both the three months ended March 2020 and the year ended December 2019.
 
•
The provision for credit losses for the three months ended March 2020 on wholesale loans was primarily related to corporate loans and was driven by growth in the firm’s wholesale loan portfolio, asset-specific provisions relating to borrowers in the oil and gas sector and the impact of the COVID-19 pandemic on the broader economic outlook. The provision for credit losses for wholesale loans was substantially all related to corporate loans for the year ended December 2019.
•
The provision for credit losses for the three months ended March 2020 on consumer loans was primarily related to seasoning of credit card loans. The provision for credit losses related to consumer loans was primarily related to installment loans for the year ended December 2019.
 
•
Other represents the reduction to the allowance related to loans and lending commitments transferred to held for sale.
 
•
The allowance
for loan losses for wholesale loans was 1.8% as of March 2020 and 1.1% as of December 2019 of total gross wholesale loans accounted for at amortized cost.
The allowance
for loan losses for consumer loans was 13.4% as of March 2020 and 6.0% as of December 2019 of total gross consumer loans accounted for at amortized cost.
 
•
The net charge-off
ratio for wholesale loans accounted for at amortized cost was 0.2% on an annualized basis for the three months ended March 2020 and 0.2% for the year ended December 2019.
The net charge-off ratio for consumer loans accounted for at amortized cost was
4.8% on an annualized basis for the three months ended March 2020 and 6.2% for the year ended December 2019.
Goldman Sachs March 2020 Form 10-Q
 
40
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Fair Value of Loans by Level
The table below presents loans held for investment accounted for at fair value under the fair value option by level within the fair value hierarchy.
 
                 
                 
$ in millions
  
Level 1
   
Level 2
   
Level 3
   
Total
 
As of March 2020
 
 
 
  
   
   
 
Loan Type
 
 
 
  
   
   
 
Corporate
 
 
$    –
 
 
 
$  1,871
 
 
 
$1,044
 
 
 
$  2,915
 
Wealth management
 
 
–
 
 
 
7,773
 
 
 
61
 
 
 
7,834
 
Commercial real estate
 
 
–
 
 
 
942
 
 
 
1,063
 
 
 
2,005
 
Residential real estate
 
 
–
 
 
 
214
 
 
 
260
 
 
 
474
 
Other
 
 
–
 
 
 
276
 
 
 
325
 
 
 
601
 
Total
 
 
$    –
 
 
 
$11,076
 
 
 
$2,753
 
 
 
$13,829
 
 
As of December 2019
 
 
 
  
   
   
 
Loan Type
 
 
 
  
   
   
 
Corporate
  
$    –
   
$  2,472
   
$   752
   
$  3,224
 
Wealth management
  
–
   
7,764
   
60
   
7,824
 
Commercial real estate
  
–
   
1,285
   
591
   
1,876
 
Residential real estate
  
–
   
571
   
221
   
792
 
Other
  
–
   
404
   
266
   
670
 
Total
  
$    –
   
$12,496
   
$1,890
   
$14,386
 
 
 
The gains/(losses) as a result of changes in the fair value of loans held for investment for which the fair value option was elected were $(27) million for the three months ended March 2020 and $102 million for the three months ended March 2019. These gains/(losses) were included in other principal transactions.
See Note 4 for an overview of the firm’s fair value measurement policies and the valuation techniques and significant inputs used to determine the fair value of loans.
Significant Unobservable Inputs
The table below presents the amount of level 3 loans, and ranges and weighted averages of significant unobservable inputs used to value such loans.
 
         
    
 
Level 3 Assets and Range of Significant Unobservable
Inputs (Weighted Average) as of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Corporate
 
Level 3 assets
 
 
$1,044
 
  
$752
 
Yield
 
 
3.1% to 26.3% (12.5%)
 
  
1.9% to 26.3% (9.5%)
 
Recovery rate
 
 
15.1% to 85.4% (40.6%)
 
  
13.5% to 78.0% (44.4%)
 
Duration (years)
 
 
1.7 to 4.3 (3.2)
 
  
3.7 to 5.8 (3.9)
 
Commercial real estate
 
Level 3 assets
 
 
$1,063
 
  
$591
 
Yield
 
 
7.0% to 26.3% (11.2%)
 
  
7.0% to 16.0% (9.3%)
 
Recovery rate
 
 
6.7% to 65.0% (29.5%)
 
  
5.9% to 85.2% (48.6%)
 
Duration (years)
 
 
0.3 to 5.9 (3.3)
 
  
0.2 to 5.3 (3.5)
 
Residential real estate
 
Level 3 assets
 
 
$260
 
  
$221
 
Yield
 
 
1.6% to 14.0% (11.9%)
 
  
1.1% to 14.0% (11.5%)
 
Duration (years)
 
 
1.0 to 5.2 (3.8)
 
  
1.1 to 4.8 (4.0)
 
Wealth management and other
  
 
Level 3 assets
 
 
$386
 
  
$326
 
Yield
 
 
2.7% to 11.5% (9.6%)
 
  
3.9% to 16.0% (9.9%)
 
Duration (years)
 
 
1.5 to 5.1 (3.2)
 
  
1.6 to 6.7 (3.7)
 
 
 
In the table above:
 
•
Ranges represent the significant unobservable inputs that were used in the valuation of each type of loan.
 
 
 
 
•
Weighted averages are calculated by weighting each input by the relative fair value of the loan.
 
 
 
 
•
The ranges and weighted averages of these inputs are not representative of the appropriate inputs to use when calculating the fair value of any one loan. For example, the highest yield for residential real estate loans is appropriate for valuing a specific residential real estate loan but may not be appropriate for valuing any other residential real estate loan. Accordingly, the ranges of inputs do not represent uncertainty in, or possible ranges of, fair value measurements of level 3 loans.
 
 
 
 
•
Increases in yield or duration used in the valuation of level 3 loans would have resulted in a lower fair value measurement, while increases in recovery rate would have resulted in a higher fair value measurement as of both March 2020 and December 2019. Due to the distinctive nature of each level 3 loan, the interrelationship of inputs is not necessarily uniform within each product type.
 
 
 
 
•
Loans are valued using discounted cash flows.
 
 
 
Level 3 Rollforward
The table below presents a summary of the changes in fair value for level 3 loans.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Beginning balance
 
 
$1,890
 
  
$1,990
 
Net realized gains/(losses)
 
 
27
 
  
26
 
Net unrealized gains/(losses)
 
 
(54
)
  
1
 
Purchases
 
 
473
 
  
44
 
Sales
 
 
(12
)
  
(3
)
Settlements
 
 
(221
)
  
(124
)
Transfers into level 3
 
 
653
 
  
170
 
Transfers out of level 3
 
 
(3
)
  
(35
)
Ending balance
 
 
$2,753
 
  
$2,069
 
 
 
In the table above:
 
•
Changes in fair value are presented for loans that are classified in level 3 as of the end of the period.
 
 
 
 
•
Net unrealized gains/(losses) relates to loans that were still held at
period-end.
 
 
 
 
•
Purchases includes originations and secondary purchases.
 
 
 
 
•
Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. If a loan was transferred to level 3 during a reporting period, its entire gain or loss for the period is classified in level 3.
 
 
   
41
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents information, by loan type, for loans included in the summary table above.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Corporate
 
 
 
  
 
Beginning balance
 
 
$
 
  752
 
  
$659
 
Net realized gains/(losses)
 
 
10
 
  
2
 
Net unrealized gains/(losses)
 
 
(11
)
  
(14
)
Purchases
 
 
156
 
  
34
 
Sales
 
 
(7
)
  
–
 
Settlements
 
 
(40
)
  
(4
)
Transfers into level 3
 
 
187
 
  
81
 
Transfers out of level 3
 
 
(3
)
  
(32
)
Ending balance
 
 
$1,044
 
  
$726
 
Commercial real estate
 
 
 
  
 
Beginning balance
 
 
$
 
  591
 
  
$677
 
Net realized gains/(losses)
 
 
17
 
  
7
 
Net unrealized gains/(losses)
 
 
7
 
  
7
 
Purchases
 
 
236
 
  
1
 
Sales
 
 
(5
)
  
(2
)
Settlements
 
 
(115
)
  
(47
)
Transfers into level 3
 
 
332
 
  
–
 
Transfers out of level 3
 
 
–
 
  
(3
)
Ending balance
 
 
$1,063
 
  
$640
 
Residential real estate
 
 
 
  
 
Beginning balance
 
 
$
 
  221
 
  
$290
 
Net realized gains/(losses)
 
 
–
 
  
8
 
Net unrealized gains/(losses)
 
 
(17
)
  
(2
)
Purchases
 
 
42
 
  
9
 
Sales
 
 
–
 
  
(1
)
Settlements
 
 
(27
)
  
(30
)
Transfers into level 3
 
 
41
 
  
–
 
Ending balance
 
 
$
 
  260
 
  
$274
 
Wealth management and other
 
 
 
  
 
Beginning balance
 
 
$
 
  326
 
  
$364
 
Net realized gains/(losses)
 
 
–
 
  
9
 
Net unrealized gains/(losses)
 
 
(33
)
  
10
 
Purchases
 
 
39
 
  
–
 
Settlements
 
 
(39
)
  
(43
)
Transfers into level 3
 
 
93
 
  
89
 
Ending balance
 
 
$
 
  386
 
  
$429
 
 
 
Level 3 Rollforward Commentary
Three Months Ended March 2020.
The net realized and unrealized losses on level 3 loans of $27 million (reflecting $27 million of net realized gains and $54 million of net unrealized losses) for the three months ended March 2020 included gains/(losses) of $(44) million reported in other principal transactions and $17 million reported in interest income.
The drivers of the net unrealized losses on level 3 loans for the three months ended March 2020 were not material.
Transfers into level 3 loans during the three months ended March 2020 primarily reflected transfer of certain commercial real estate loans and corporate loans from level 2, principally due to reduced price transparency as a result of a lack of market evidence, including fewer market transactions in these instruments.
The drivers of transfers out of level 3 loans during the three months ended March 2020 were not material.
Three Months Ended March 2019.
The net realized and unrealized gains on level 3 loans of $27 million (reflecting $26 million of net realized gains and $1 million of net unrealized gains) for the three months ended March 2019 included gains of $13 million reported in other principal transactions and $14 million reported in interest income.
The drivers of the net unrealized gains on level 3 loans for the three months ended March 2019 were not material.
The drivers of transfers into and out of
level 3 loans during the three months ended March 2019 were not material.
Estimated Fair Value
The table below presents the estimated fair value of loans that are not accounted for at fair value and in what level of the fair value hierarchy they would have been classified if they had been included in the firm’s fair value hierarchy.
 
                   
          
$ in millions
  
Carrying
Value
  
    
 
Estimated Fair Value
 
Level 2
  
Level 3
  
Total
 
As of March 2020
 
 
 
 
  
   
   
 
Amortized cost
 
 
$111,467
 
 
 
 
$54,658
 
 
 
$53,979
 
 
 
$108,637
 
Held for sale
 
 
$    3,157
 
 
 
 
$  1,646
 
 
 
$  1,564
 
 
 
$    3,210
 
 
As of December 2019
 
 
 
 
  
   
   
 
Amortized cost
  
$  89,195
  
  
$52,091
   
$37,095
   
$  89,186
 
Held for sale
  
$    5,323
  
  
$  4,157
   
$  1,252
   
$    5,409
 
 
 
   
Goldman Sachs March 2020 Form 10-Q
 
42
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 10.
Fair Value Option
Other Financial Assets and Liabilities at Fair Value
In addition to trading assets and liabilities, and certain investments and loans, the firm accounts for certain of its other financial assets and liabilities at fair value, substantially all under the fair value option. The primary reasons for electing the fair value option are to:
 
•
Reflect economic events in earnings on a timely basis;
 
 
•
Mitigate volatility in earnings from using different measurement attributes (e.g., transfers of financial assets accounted for as financings are recorded at fair value, whereas the related secured financing would be recorded on an accrual basis absent electing the fair value option); and
 
 
•
Address simplification and cost-benefit considerations (e.g., accounting for hybrid financial instruments at fair value in their entirety versus bifurcation of embedded derivatives and hedge accounting for debt hosts).
 
Hybrid financial instruments are instruments that contain bifurcatable embedded derivatives and do not require settlement by physical delivery of nonfinancial assets (e.g., physical commodities). If the firm elects to bifurcate the embedded derivative from the associated debt, the derivative is accounted for at fair value and the host contract is accounted for at amortized cost, adjusted for the effective portion of any fair value hedges. If the firm does not elect to bifurcate, the entire hybrid financial instrument is accounted for at fair value under the fair value option.
Other financial assets and liabilities accounted for at fair value under the fair value option include:
 
•
Repurchase agreements and substantially all resale agreements;
 
 
•
Securities borrowed and loaned in FICC financing;
 
 
•
Most other secured financings, including transfers of assets accounted for as financings and collateralized central bank financings
;
 
 
•
Certain unsecured short- and long-term borrowings, substantially all of which are hybrid financial instruments;
 
 
•
Certain customer and other receivables, including certain margin loans; and
 
 
•
Certain time deposits (deposits with no stated maturity are not eligible for a fair value option election), including structured certificates of deposit, which are hybrid financial instruments.
 
Fair Value of Other Financial Assets and Liabilities by Level
The table below presents, by level within the fair value hierarchy, other financial assets and liabilities at fair value, substantially all of which are accounted for at fair value under the fair value option.
 
                 
                 
$ in millions
  
Level 1
   
Level 2
   
Level 3
   
Total
 
As of March 2020
 
 
 
  
   
   
 
Assets
  
   
   
   
 
Resale agreements
 
 
$    –
 
 
 
$ 132,333
 
 
 
$          –
 
 
 
$ 132,333
 
Securities borrowed
 
 
–
 
 
 
29,771
 
 
 
–
 
 
 
29,771
 
Customer and other receivables
 
 
–
 
 
 
53
 
 
 
–
 
 
 
53
 
Total
 
 
$    –
 
 
 
$ 162,157
 
 
 
$          –
 
 
 
$ 162,157
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
$    –
 
 
 
$  (20,726
)
 
 
$  (3,996
)
 
 
$  (24,722
)
Repurchase agreements
 
 
–
 
 
 
(95,852
)
 
 
(12
)
 
 
(95,864
)
Securities loaned
 
 
–
 
 
 
(1,148
)
 
 
–
 
 
 
(1,148
)
Other secured financings
 
 
–
 
 
 
(28,761
)
 
 
(1,230
)
 
 
(29,991
)
Unsecured borrowings:
 
 
 
 
 
 
 
 
 
 
 
 
Short-term
 
 
–
 
 
 
(13,572
)
 
 
(5,411
)
 
 
(18,983
)
Long-term
 
 
–
 
 
 
(32,637
)
 
 
(10,676
)
 
 
(43,313
)
Other liabilities
 
 
–
 
 
 
(2
)
 
 
(325
)
 
 
(327
)
Total
 
 
$    –
 
 
 
$(192,698
)
 
 
$(21,650
)
 
 
$(214,348
)
 
As of December 2019
 
 
 
  
   
   
 
Assets
  
   
   
   
 
Resale agreements
  
$    –
   
$
 
   85,691
   
$          
 
–
   
$
 
   85,691
 
Securities borrowed
  
–
   
26,279
   
–
   
26,279
 
Customer and other receivables
  
–
   
53
   
–
   
53
 
Total
  
$    –
   
$
 
 112,023
   
$          
 
–
   
$
 
 112,023
 
Liabilities
  
   
   
   
 
Deposits
  
$    –
   
$
 
  (13,742
)  
$
 
  (4,023
)  
$
 
  (17,765
)
Repurchase agreements
  
–
   
(117,726
)  
(30
)  
(117,756
)
Securities loaned
  
–
   
(714
)  
–
   
(714
)
Other secured financings
  
–
   
(17,685
)  
(386
)  
(18,071
)
Unsecured borrowings:
  
   
   
   
 
Short-term
  
–
   
(20,300
)  
(5,707
)  
(26,007
)
Long-term
  
–
   
(32,920
)  
(10,741
)  
(43,661
)
Other liabilities
  
–
   
(1
)  
(149
)  
(150
)
Total
  
$    –
   
$
 
(203,088
)  
$
 
(21,036
)  
$
 
(224,124
)
 
In the table above, other financial assets are shown as positive amounts and other financial liabilities are shown as negative amounts.
See Note 4 for an overview of the firm’s fair value measurement policies and the valuation techniques and significant inputs used to determine the fair value of other financial assets and liabilities.
Significant Unobservable Inputs
See below for information about the significant unobservable inputs used to value level 3 other financial assets and liabilities at fair value as of both March 2020 and December 2019.
   
43
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Other Secured Financings.
The ranges and weighted averages of significant unobservable inputs used to value level 3 other secured financings are presented below. These ranges and weighted averages exclude unobservable inputs that are only relevant to a single instrument, and therefore are not meaningful.
As of March 2020:
 
•
Yield: 2.2% to 4.2% (weighted average: 2.6%)
 
 
•
Duration: 0.4 to 3.8 years (weighted average: 3.3 years)
 
As of December 2019:
 
•
Yield: 3.3% to 4.2% (weighted average: 3.5%)
 
 
•
Duration: 0.6 to 2.1 years (weighted average: 1.0 year)
 
Generally, increases in yield or duration, in isolation, would have resulted in a lower fair value measurement as of period-end. Due to the distinctive nature of each of level 3 other secured financings, the interrelationship of inputs is not necessarily uniform across such financings. See Note 11 for further information about other secured financings.
Deposits, Unsecured Borrowings and Other Liabilities.
Substantially all of the firm’s deposits, unsecured short- and long-term borrowings, and other liabilities that are classified in level 3 are hybrid financial instruments. As the significant unobservable inputs used to value hybrid financial instruments primarily relate to the embedded derivative component of these deposits, unsecured borrowings and other liabilities, these unobservable inputs are incorporated in the firm’s derivative disclosures in Note 7. See Note 13 for further information about deposits, Note 14 for further information about unsecured borrowings and Note 15 for further information about other liabilities.
Repurchase Agreements.
As of both March 2020 and December 2019, the firm’s level 3 repurchase agreements were not material.
Level 3 Rollforward
The table below presents a summary of the changes in fair value for level 3 other financial liabilities accounted for at fair value.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Beginning balance
 
 
$(21,036
)
  
$(19,397
)
Net realized gains/(losses)
 
 
(130
)
  
(79
)
Net unrealized gains/(losses)
 
 
3,160
 
  
(1,494
)
Issuances
 
 
(7,643
)
  
(3,036
)
Settlements
 
 
5,157
 
  
3,307
 
Transfers into level 3
 
 
(1,596
)
  
(571
)
Transfers out of level 3
 
 
438
 
  
351
 
Ending balance
 
 
$(21,650
)
  
$(20,919
)
 
In the table above:
 
•
Changes in fair value are presented for all other financial liabilities that are classified in level 3 as of the end of the period.
 
 
•
Net unrealized gains/(losses) relates to other financial liabilities that were still held at
period-end.
 
 
•
Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. If a financial liability was transferred to level 3 during a reporting period, its entire gain or loss for the period is classified in level 3.
 
 
•
For level 3 other financial liabilities, increases are shown as negative amounts, while decreases are shown as positive amounts.
 
 
•
Level 3 other financial liabilities are frequently economically hedged with trading assets and liabilities. Accordingly, gains or losses that are classified in level 3 can be partially offset by gains or losses attributable to level 1, 2 or 3 trading assets and liabilities. As a result, gains or losses included in the level 3 rollforward below do not necessarily represent the overall impact on the firm’s results of operations, liquidity or capital resources.
 
   
Goldman Sachs March 2020 Form 10-Q
 
44
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents information, by the consolidated balance sheet line items, for liabilities included in the summary table above.
 
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Deposits
 
 
 
  
 
Beginning balance
 
 
$  (4,023
)
  
$  (3,168
)
Net realized gains/(losses)
 
 
(11
)
  
(1
)
Net unrealized gains/(losses)
 
 
117
 
  
(142
)
Issuances
 
 
(335
)
  
(197
)
Settlements
 
 
309
 
  
111
 
Transfers into level 3
 
 
(121
)
  
(16
)
Transfers out of level 3
 
 
68
 
  
62
 
Ending balance
 
 
$  (3,996
)
  
$  (3,351
)
Repurchase agreements
 
 
 
  
 
Beginning balance
 
 
$
 
      (30
)
  
$       (29
)
Net unrealized gains/(losses)
 
 
3
 
  
(4
)
Settlements
 
 
15
 
  
4
 
Ending balance
 
 
$
 
      (12
)
  
$       (29
)
Other secured financings
 
 
 
  
 
Beginning balance
 
 
$
 
    (386
)
  
$     (170
)
Net realized gains/(losses)
 
 
(44
)
  
11
 
Net unrealized gains/(losses)
 
 
107
 
  
(10
)
Issuances
 
 
(14
)
  
(11
)
Settlements
 
 
92
 
  
8
 
Transfers into level 3
 
 
(985
)
  
(20
)
Ending balance
 
 
$  (1,230
)
  
$     (192
)
Unsecured short-term borrowings
 
 
 
  
 
Beginning balance
 
 
$  (5,707
)
  
$  (4,076
)
Net realized gains/(losses)
 
 
(11
)
  
7
 
Net unrealized gains/(losses)
 
 
1,538
 
  
(425
)
Issuances
 
 
(3,954
)
  
(2,155
)
Settlements
 
 
2,718
 
  
1,344
 
Transfers into level 3
 
 
(270
)
  
(338
)
Transfers out of level 3
 
 
275
 
  
130
 
Ending balance
 
 
$  (5,411
)
  
$  (5,513
)
Unsecured long-term borrowings
 
 
 
  
 
Beginning balance
 
 
$(10,741
)
  
$(11,823
)
Net realized gains/(losses)
 
 
(72
)
  
(103
)
Net unrealized gains/(losses)
 
 
1,571
 
  
(912
)
Issuances
 
 
(3,332
)
  
(666
)
Settlements
 
 
2,023
 
  
1,840
 
Transfers into level 3
 
 
(220
)
  
(197
)
Transfers out of level 3
 
 
95
 
  
159
 
Ending balance
 
 
$(10,676
)
  
$(11,702
)
Other liabilities
 
 
 
  
 
Beginning balance
 
 
$
 
    (149
)
  
$     (131
)
Net realized gains/(losses)
 
 
8
 
  
7
 
Net unrealized gains/(losses)
 
 
(176
)
  
(1
)
Issuances
 
 
(8
)
  
(7
)
Ending balance
 
 
$
 
    (325
)
  
$     (132
)
Level 3 Rollforward Commentary
Three Months Ended March 2020.
The net realized and unrealized gains on level 3 other financial liabilities of $3.03 billion (reflecting $130 million of net realized losses and $3.16 billion of net unrealized gains) for the three months ended March 2020 included gains of $1.99 billion reported in market making
 and
 $64
 million reported in other principal transactions in the consolidated statements of earnings, and
$974 million reported in debt valuation adjustment in the consolidated statements of comprehensive income.
The unrealized gains on level 3 other financial liabilities for the three months ended March 2020 primarily reflected gains on certain hybrid financial instruments included in unsecured long- and short-term borrowings, principally due to a decrease in global equity prices.
Transfers into level 3 other financial liabilities during the three months ended March 2020 primarily reflected transfers of certain other secured financings and hybrid financial instruments included in unsecured short- and long-term borrowings from level 2, principally due to reduced price transparency of certain volatility and correlation inputs used to value these instruments.
Transfers out of level 3 other financial liabilities during the three months ended March 2020 primarily reflected transfers of certain hybrid financial instruments included in unsecured short- and long-term borrowings to level 2, principally due to increased price transparency of certain volatility and correlation inputs used to value these instruments.
Three Months Ended March 2019.
The net realized and unrealized losses on level 3 other financial liabilities of $1.57 billion (reflecting $79 million of net realized losses and $1.49 billion of net unrealized losses) for the three months ended March 2019 included losses of $1.22 billion reported in market making and $1 million reported in other principal transactions in the consolidated statements of earnings, and $350 million reported in debt valuation adjustment in the consolidated statements of comprehensive income.
The net unrealized losses on level 3 other financial liabilities for the three months ended March 2019 primarily reflected losses on certain hybrid financial instruments included in unsecured long-term and short-term borrowings, principally due to an increase in global equity prices.
Transfers into level 3 other financial liabilities during the three months ended March 2019 primarily reflected transfers of certain hybrid financial instruments included in unsecured short-term and long-term borrowings from level 2, principally due to reduced transparency of certain volatility and correlation inputs used to value these instruments.
45
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Transfers out of level 3 other financial liabilities during the three months ended March 2019 primarily reflected transfers of certain hybrid financial instruments included in unsecured long-term and short-term borrowings to level 2, principally due to increased transparency of certain volatility and correlation inputs used to value these instruments.
Gains and Losses on Other Financial Assets and Liabilities Accounted for at Fair Value Under the Fair Value Option
The table below presents the gains and losses recognized in earnings as a result of the election to apply the fair value option to certain financial assets and liabilities.
 
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Unsecured short-term borrowings
 
 
$4,481
 
  
$(1,616
)
Unsecured long-term borrowings
 
 
992
 
  
(2,229
)
Other
 
 
398
 
  
(476
)
Total
 
 
$5,871
 
  
$(4,321
)
In the table above:
 
•
Gains/(losses) were substantially all included in market making.
 
•
Gains/(losses) exclude contractual interest, which is included in interest income and interest expense, for all instruments other than hybrid financial instruments. See Note 23 for further information about interest income and interest expense.
 
•
Gains/(losses) included in unsecured short- and long-term borrowings were substantially all related to the embedded derivative component of hybrid financial instruments for both the three months ended March 2020 and March 2019. These gains and losses would have been recognized under other U.S. GAAP even if the firm had not elected to account for the entire hybrid financial instrument at fair value.
 
•
Other primarily consists of gains/(losses) on customer and other receivables, deposits, other secured financings and other liabilities.
 
•
Other financial assets and liabilities at fair value are frequently economically hedged with trading assets and liabilities. Accordingly, gains or losses on such other financial assets and liabilities can be partially offset by gains or losses on trading assets and liabilities. As a result, gains or losses on other financial assets and liabilities do not necessarily represent the overall impact on the firm’s results of operations, liquidity or capital resources.
See Note 8 for information about gains/(losses) on equity securities and Note 9 for information about gains/(losses) on loans which are accounted for at fair value under the fair value option. Gains/(losses) on trading assets and liabilities accounted for at fair value under the fair value option are included in market making. See Note 5 for further information about gains/(losses) from market making.
Long-Term Debt Instruments
The aggregate contractual principal amount of long-term other secured financings for which the fair value option was elected exceeded the related fair value by $546 million as of March 2020. The difference between the aggregate contractual principal amount and the related fair value of long-term other secured financings for which the fair value option was elected was not material as of December 2019.
The aggregate contractual principal amount of unsecured long-term borrowings for which the fair value option was elected exceeded the related fair value by $823 million as of March 2020, and the fair value exceeded the aggregate contractual principal amount by $199 million as of December 2019. The amounts above include both principal-protected and
non-principal-protected
long-term borrowings.
Debt Valuation Adjustment
The firm calculates the fair value of financial liabilities for which the fair value option is elected by discounting future cash flows at a rate which incorporates the firm’s credit spreads.
The table below presents information about the net debt valuation adjustment (DVA) gains/(losses) on financial liabilities for which the fair value option was elected.
 
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
DVA
(pre-tax)
 
 
$3,871
 
  
$(1,889
)
DVA (net of tax)
 
 
$2,914
 
  
$(1,417
)
In the table above:
 
•
DVA (net of tax) is included in debt valuation adjustment in the consolidated statements of comprehensive income.
 
•
The gains/(losses) reclassified to earnings from accumulated other comprehensive income/(loss) upon extinguishment of such financial liabilities were not material for both the three months ended March 2020 and March 2019.
Goldman Sachs March 2020 Form 10-Q
 
46
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Loans and Lending Commitments
The table below presents the difference between the aggregate fair value and the aggregate contractual principal amount for loans (included in trading assets and loans on the consolidated balance sheets) for which the fair value option was elected.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Performing loans
 
 
 
  
 
Aggregate contractual principal in excess of fair value
 
 
$  
 
719
 
  
$   809
 
Loans on nonaccrual status and/or more than 90 days past due
 
Aggregate contractual principal in excess of fair value
 
 
$8,591
 
  
$6,703
 
Aggregate fair value
 
 
$3,472
 
  
$2,776
 
 
In the table above, the aggregate contractual principal amount of loans on nonaccrual status and/or more than 90 days past due (which excludes loans carried at zero fair value and considered uncollectible) exceeds the related fair value primarily because the firm regularly purchases loans, such as distressed loans, at values significantly below the contractual principal amounts.
The fair value of unfunded lending commitments for which the fair value option was elected was a liability of $6 million as of March 2020 and $24 million as of December 2019, and the related total contractual amount of these lending commitments was $2.33 billion as of March 2020 and $1.55 billion as of December 2019. See Note 18 for further information about lending commitments.
Impact of Credit Spreads on Loans and Lending Commitments
The estimated net gain/(loss) attributable to changes in instrument-specific credit spreads on loans and lending commitments for which the fair value option was elected was $(194) million for the three months ended March 2020 and $77 million for the three months ended March 2019. The firm generally calculates the fair value of loans and lending commitments for which the fair value option is elected by discounting future cash flows at a rate which incorporates the instrument-specific credit spreads. For floating-rate loans and lending commitments, substantially all changes in fair value are attributable to changes in instrument-specific credit spreads, whereas for fixed-rate loans and lending commitments, changes in fair value are also attributable to changes in interest rates.
Note 11.
Collateralized Agreements and Financings
Collateralized agreements are resale agreements and securities borrowed. Collateralized financings are repurchase agreements, securities loaned and other secured financings. The firm enters into these transactions in order to, among other things, facilitate client activities, invest excess cash, acquire securities to cover short positions and finance certain firm activities.
Collateralized agreements and financings are presented on a
net-by-counterparty
basis when a legal right of setoff exists. Interest on collateralized agreements, which is included in interest income, and collateralized financings, which is included in interest expense, is recognized over the life of the transaction. See Note 23 for further information about interest income and interest expense.
The table below presents the carrying value of resale and repurchase agreements and securities borrowed and loaned transactions.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Resale agreements
 
 
$132,333
 
  
$  85,691
 
Securities borrowed
 
 
$121,670
 
  
$136,071
 
Repurchase agreements
 
 
$  95,864
 
  
$117,756
 
Securities loaned
 
 
$  13,869
 
  
$  14,985
 
 
In the table above:
 
•
Substantially all resale agreements and all repurchase agreements are carried at fair value under the fair value option. See Note 4 for further information about the valuation techniques and significant inputs used to determine fair value.
 
 
•
Securities borrowed of $29.77 billion as of March 2020 and $26.28 billion as of December 2019, and securities loaned of $1.15 billion as of March 2020 and $714 million as of December 2019 were at fair value.
 
Resale and Repurchase Agreements
A resale agreement is a transaction in which the firm purchases financial instruments from a seller, typically in exchange for cash, and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller at a stated price plus accrued interest at a future date.
   
47
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
A repurchase agreement is a transaction in which the firm sells financial instruments to a buyer, typically in exchange for cash, and simultaneously enters into an agreement to repurchase the same or substantially the same financial instruments from the buyer at a stated price plus accrued interest at a future date.
Even though repurchase and resale agreements (including “repos- and
reverses-to-maturity”)
involve the legal transfer of ownership of financial instruments, they are accounted for as financing arrangements because they require the financial instruments to be repurchased or resold before or at the maturity of the agreement. The financial instruments purchased or sold in resale and repurchase agreements typically include U.S. government and agency, and investment-grade sovereign obligations.
The firm receives financial instruments purchased under resale agreements and makes delivery of financial instruments sold under repurchase agreements. To mitigate credit exposure, the firm monitors the market value of these financial instruments on a daily basis, and delivers or obtains additional collateral due to changes in the market value of the financial instruments, as appropriate. For resale agreements, the firm typically requires collateral with a fair value approximately equal to the carrying value of the relevant assets in the consolidated balance sheets.
Securities Borrowed and Loaned Transactions
In a securities borrowed transaction, the firm borrows securities from a counterparty in exchange for cash or securities. When the firm returns the securities, the counterparty returns the cash or securities. Interest is generally paid periodically over the life of the transaction.
In a securities loaned transaction, the firm lends securities to a counterparty in exchange for cash or securities. When the counterparty returns the securities, the firm returns the cash or securities posted as collateral. Interest is generally paid periodically over the life of the transaction.
The firm receives securities borrowed and makes delivery of securities loaned. To mitigate credit exposure, the firm monitors the market value of these securities on a daily basis, and delivers or obtains additional collateral due to changes in the market value of the securities, as appropriate. For securities borrowed transactions, the firm typically requires collateral with a fair value approximately equal to the carrying value of the securities borrowed transaction.
Securities borrowed and loaned within FICC financing are recorded at fair value under the fair value option. See Note 10 for further information about securities borrowed and loaned accounted for at fair value.
Securities borrowed and loaned within Equities financing are recorded based on the amount of cash collateral advanced or received plus accrued interest. As these agreements generally can be terminated on demand, they exhibit little, if any, sensitivity to changes in interest rates. Therefore, the carrying value of such agreements approximates fair value. As these agreements are not accounted for at fair value, they are not included in the firm’s fair value hierarchy in Notes 4 through 10. Had these agreements been included in the firm’s fair value hierarchy, they would have been classified in level 2 as of both March 2020 and December 2019.
Offsetting Arrangements
The table below presents resale and repurchase agreements and securities borrowed and loaned transactions included in the consolidated balance sheets, as well as the amounts not offset in the consolidated balance sheets.
 
                   
         
 
Assets
  
    
 
Liabilities
 
                   
$ in millions
  
Resale agreements
   
Securities borrowed
  
  
Repurchase agreements
   
Securities loaned
 
As of March 2020
 
 
 
  
  
  
   
 
Included in the consolidated balance sheets
 
Gross carrying value
 
 
$ 199,157
 
 
 
$ 125,340
 
 
 
 
$
 
162,688
 
 
 
$
 
17,539
 
Counterparty netting
 
 
(66,824
)
 
 
(3,670
)
 
 
 
(66,824
)
 
 
(3,670
)
Total
 
 
132,333
 
 
 
121,670
 
 
 
 
95,864
 
 
 
13,869
 
Amounts not offset
 
 
 
 
 
 
 
 
 
 
 
 
 
Counterparty netting
 
 
(7,393
)
 
 
(4,043
)
 
 
 
(7,393
)
 
 
(4,043
)
Collateral
 
 
(121,885
)
 
 
(110,661
)
 
 
 
(87,681
)
 
 
(9,826
)
Total
 
 
$     3,055
 
 
 
$     6,966
 
 
 
 
$        
 
790
 
 
 
$
 
         –
 
 
As of December 2019
 
 
 
  
  
  
   
 
Included in the consolidated balance sheets
 
Gross carrying value
  
$
  
152,982
   
$
  
140,677
  
  
$ 185,047
   
$ 19,591
 
Counterparty netting
  
(67,291
)  
(4,606
) 
  
(67,291
)  
(4,606
)
Total
  
85,691
   
136,071
  
  
117,756
   
14,985
 
Amounts not offset
  
   
  
  
   
 
Counterparty netting
  
(3,058
)  
(2,211
) 
  
(3,058
)  
(2,211
)
Collateral
  
(78,528
)  
(127,901
) 
  
(114,065
)  
(12,614
)
Total
  
$
  
    4,105
   
$
 
     5,959
  
  
$        633
   
$      160
 
 
In the table above:
 
•
Substantially all of the gross carrying values of these arrangements are subject to enforceable netting agreements.
 
 
•
Where the firm has received or posted collateral under credit support agreements, but has not yet determined such agreements are enforceable, the related collateral has not been netted.
 
 
•
Amounts not offset includes counterparty netting that does not meet the criteria for netting under U.S. GAAP and the fair value of collateral received or posted subject to enforceable credit support agreements.
 
   
Goldman Sachs March 2020 Form 10-Q
 
48
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Gross Carrying Value of Repurchase Agreements and Securities Loaned
The table below presents the gross carrying value of repurchase agreements and securities loaned by class of collateral pledged.
 
       
$ in millions
 
Repurchase
agreements
  
Securities
loaned
 
As of March 2020
 
 
 
  
 
Money market instruments
 
 
$      
 
719
 
 
 
$
  
        –
 
U.S. government and agency obligations
 
 
81,270
 
 
 
–
 
Non-U.S.
government and agency obligations
 
 
61,443
 
 
 
1,032
 
Securities backed by commercial real estate
 
 
60
 
 
 
–
 
Securities backed by residential real estate
 
 
450
 
 
 
–
 
Corporate debt securities
 
 
6,875
 
 
 
74
 
State and municipal obligations
 
 
222
 
 
 
–
 
Other debt obligations
 
 
1,061
 
 
 
–
 
Equity securities
 
 
10,588
 
 
 
16,433
 
Total
 
 
$162,688
 
 
 
$17,539
 
 
As of December 2019
 
 
 
  
 
Money market instruments
  
$       158
   
$        
 
 –
 
U.S. government and agency obligations
  
112,903
   
–
 
Non-U.S.
government and agency obligations
  
55,575
   
1,051
 
Securities backed by commercial real estate
  
210
   
–
 
Securities backed by residential real estate
  
1,079
   
–
 
Corporate debt securities
  
6,857
   
122
 
State and municipal obligations
  
242
   
–
 
Other debt obligations
  
196
   
–
 
Equity securities
  
7,827
   
18,418
 
Total
  
$185,047
   
$19,591
 
The table below presents the gross carrying value of repurchase agreements and securities loaned by maturity.
 
    
 
As of March 2020
 
         
$ in millions
 
 
Repurchase agreements
 
 
 
Securities loaned
 
No stated maturity and overnight
 
 
$  42,764
 
 
 
$13,522
 
2 - 30 days
 
 
68,223
 
 
 
–
 
31 - 90 days
 
 
29,421
 
 
 
972
 
91 days - 1 year
 
 
20,504
 
 
 
3,045
 
Greater than 1 year
 
 
1,776
 
 
 
–
 
Total
 
 
$162,688
 
 
 
$17,539
 
In the table above:
 
•
Repurchase agreements and securities loaned that are repayable prior to maturity at the option of the firm are reflected at their contractual maturity dates.
 
•
Repurchase agreements and securities loaned that are redeemable prior to maturity at the option of the holder are reflected at the earliest dates such options become exercisable.
Other Secured Financings
In addition to repurchase agreements and securities loaned transactions, the firm funds certain assets through the use of other secured financings and pledges financial instruments and other assets as collateral in these transactions. These other secured financings consist of:
 
•
Liabilities of consolidated VIEs;
 
•
Transfers of assets accounted for as financings rather than sales (e.g., pledged commodities, bank loans and mortgage whole loans);
 
•
Other structured financing arrangements; and
 
•
Collateralized central bank financings.
Other secured financings included nonrecourse arrangements. Nonrecourse other secured financings were $18.02 billion as of March 2020 and $10.91 billion as of December 2019.
The firm has elected to apply the fair value option to substantially all other secured financings because the use of fair value eliminates
non-economic
volatility in earnings that would arise from using different measurement attributes. See Note 10 for further information about other secured financings that are accounted for at fair value.
Other secured financings that are not recorded at fair value are recorded based on the amount of cash received plus accrued interest, which generally approximates fair value. As these financings are not accounted for at fair value, they are not included in the firm’s fair value hierarchy in Notes 4 through 10. Had these financings been included in the firm’s fair value hierarchy, they would have been primarily classified in level 2 as of both March 2020 and December 2019.
49
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents information about other secured financings.
 
             
$ in millions
  
U.S.
Dollar
   
Non-U.S.
Dollar
   
Total
 
As of March 2020
 
 
 
  
   
 
Other secured financings (short-term):
 
 
 
  
   
 
At fair value
 
 
$13,248
 
 
 
$  4,725
 
 
 
$17,973
 
At amortized cost
 
 
6,123
 
 
 
–
 
 
 
6,123
 
Other secured financings (long-term):
 
 
 
 
 
 
At fair value
 
 
6,665
 
 
 
5,353
 
 
 
12,018
 
At amortized cost
 
 
396
 
 
 
686
 
 
 
1,082
 
Total other secured financings
 
 
$26,432
 
 
 
$10,764
 
 
 
$37,196
 
 
Other secured financings collateralized by:
 
 
 
Financial instruments
 
 
$19,694
 
 
 
$  8,629
 
 
 
$28,323
 
Other assets
 
 
$  6,738
 
 
 
$  2,135
 
 
 
$  8,873
 
 
As of December 2019
 
 
 
  
   
 
Other secured financings (short-term):
 
 
 
  
   
 
At fair value
  
$  2,754
   
$  4,441
   
$  7,195
 
At amortized cost
  
129
   
–
   
129
 
Other secured financings (long-term):
  
   
   
 
At fair value
  
7,402
   
3,474
   
10,876
 
At amortized cost
  
397
   
680
   
1,077
 
Total other secured financings
  
$10,682
   
$  8,595
   
$19,277
 
 
Other secured financings collateralized by:
  
   
 
Financial instruments
  
$  4,826
   
$  7,189
   
$12,015
 
Other assets
  
$  5,856
   
$  1,406
   
$  7,262
 
In the table above:
 
•
Short-term other secured financings includes financings maturing within one year of the financial statement date and financings that are redeemable within one year of the financial statement date at the option of the holder.
 
•
U.S. dollar-denominated short-term other secured financings at amortized cost had a weighted average interest rate of 0.32% as of March 2020 and 4.32% as of December 2019. These rates include the effect of hedging activities.
 
•
U.S. dollar-denominated long-term other secured financings at amortized cost had a weighted average interest rate of 2.79% as of both March 2020 and December 2019. These rates include the effect of hedging activities.
 
•
Total other secured financings included $1.48 billion as of March 2020 and $2.16 billion as of December 2019 related to transfers of financial assets accounted for as financings rather than sales. Such financings were collateralized by financial assets of $1.38 billion as of March 2020 and $2.21 billion as of December 2019, both primarily included in trading assets.
•
Other secured financings collateralized by financial instruments included $24.62 billion as of March 2020 and $9.09 billion as of December 2019 of other secured financings collateralized by trading assets and loans, and included $3.70 billion as of March 2020 and $2.93 billion as of December 2019 of other secured financings collateralized by financial instruments received as collateral and repledged.
The table below presents other secured financings by maturity.
 
     
$ in millions
 
 
As of March 2020
 
Other secured financings (short-term)
 
 
$24,096
 
Other secured financings (long-term):
 
 
 
2021
 
 
3,460
 
2022
 
 
2,589
 
2023
 
 
1,606
 
2024
 
 
1,490
 
2025
 
 
492
 
2026 - thereafter
 
 
3,463
 
Total other secured financings (long-term)
 
 
13,100
 
Total other secured financings
 
 
$37,196
 
In the table above:
 
•
Long-term other secured financings that are repayable prior to maturity at the option of the firm are reflected at their contractual maturity dates.
 
•
Long-term other secured financings that are redeemable prior to maturity at the option of the holder are reflected at the earliest dates such options become exercisable.
Collateral Received and Pledged
The firm receives cash and securities (e.g., U.S. government and agency obligations, other sovereign and corporate obligations, as well as equity securities) as collateral, primarily in connection with resale agreements, securities borrowed, derivative transactions and customer margin loans. The firm obtains cash and securities as collateral on an upfront or contingent basis for derivative instruments and collateralized agreements to reduce its credit exposure to individual counterparties.
In many cases, the firm is permitted to deliver or repledge financial instruments received as collateral when entering into repurchase agreements and securities loaned transactions, primarily in connection with secured client financing activities. The firm is also permitted to deliver or repledge these financial instruments in connection with other secured financings, collateralized derivative transactions and firm or customer settlement requirements.
Goldman Sachs March 2020 Form 10-Q
 
50
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The firm also pledges certain trading assets in connection with repurchase agreements, securities loaned transactions and other secured financings, and other assets (substantially all real estate and cash) in connection with other secured financings to counterparties who may or may not have the right to deliver or repledge them.
The table below presents financial instruments at fair value received as collateral that were available to be delivered or repledged and were delivered or repledged.
 
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Collateral available to be delivered or repledged
 
 
$689,662
 
  
$661,490
 
Collateral that was delivered or repledged
 
 
$557,726
 
  
$558,634
 
In the table above, collateral available to be delivered or repledged excluded $14.65 billion as of March 2020 and $6.15 billion as of December 2019 of securities received under resale agreements and securities borrowed transactions that contractually had the right to be delivered or repledged, but were segregated for regulatory and other purposes.
The table below presents information about assets pledged.
 
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Pledged to counterparties that had the right to deliver or repledge
 
Trading assets
 
 
$59,128
 
  
$  66,605
 
Investments
 
 
$10,765
 
  
$  10,968
 
Pledged to counterparties that did not have the right to deliver or repledge
 
Trading assets
 
 
$92,201
 
  
$101,578
 
Investments
 
 
$  8,098
 
  
$       849
 
Loans
 
 
$34,933
 
  
$    6,628
 
Other assets
 
 
$14,573
 
  
$  12,337
 
The firm also segregated securities included in trading
assets
and
investments
of $39.32 billion as of March 2020 and $20.61 billion as of December 2019 for regulatory and other purposes. See Note 3 for information about segregated cash.
Note 12.
Other Assets
The table below presents other assets by type.
 
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Property, leasehold improvements and equipment
 
 
$23,620
 
  
$21,886
 
Goodwill and identifiable intangible assets
 
 
4,810
 
  
4,837
 
Operating lease
right-of-use
assets
 
 
2,284
 
  
2,360
 
Income
tax-related
assets
 
 
1,804
 
  
2,068
 
Miscellaneous receivables and other
 
 
4,201
 
  
3,731
 
Total
 
 
$36,719
 
  
$34,882
 
Property, Leasehold Improvements and Equipment
Property, leasehold improvements and equipment is net of accumulated depreciation and amortization of $9.23 billion as of March 2020 and $9.95 billion as of December 2019. Property, leasehold improvements and equipment included $6.23 billion as of March 2020 and $6.16 billion as of December 2019 that the firm uses in connection with its operations, and $484 million as of March 2020 and $521 million as of December 2019 of foreclosed real estate primarily related to distressed loans that were purchased by the firm. The remainder is held by investment entities, including VIEs, consolidated by the firm. Substantially all property and equipment is depreciated on a straight-line basis over the useful life of the asset. Leasehold improvements are amortized on a straight-line basis over the shorter of the useful life of the improvement or the term of the lease. Capitalized costs of software developed or obtained for internal use are amortized on a straight-line basis over three years.
The firm tests property, leasehold improvements and equipment for impairment whenever events or changes in circumstances suggest that an asset’s or asset group’s carrying value may not be fully recoverable. To the extent the carrying value of an asset or asset group exceeds the projected undiscounted cash flows expected to result from the use and eventual disposal of the asset or asset group, the firm determines the asset or asset group is impaired and records an impairment equal to the difference between the estimated fair value and the carrying value of the asset or asset group. In addition, the firm will recognize an impairment prior to the sale of an asset or asset group if the carrying value of the asset or asset group exceeds its estimated fair value.
There were no material impairments during both the three months ended March 2020 and March 2019.
51
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
 
Goodwill and Identifiable Intangible Assets
Goodwill.
Goodwill is the cost of acquired companies in excess of the fair value of net assets, including identifiable intangible assets, at the acquisition date.
The table below presents the carrying value of goodwill by reporting unit.
 
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Investment Banking
 
 
$  
 
281
 
  
$   281
 
Global Markets:
 
 
 
  
 
FICC
 
 
269
 
  
269
 
Equities
 
 
2,508
 
  
2,508
 
Asset Management
 
 
390
 
  
390
 
Consumer & Wealth Management:
 
 
 
  
 
Consumer banking
 
 
48
 
  
48
 
Wealth management
 
 
700
 
  
700
 
Total
 
 
$4,196
 
  
$4,196
 
Goodwill is assessed for impairment annually in the fourth quarter or more frequently if events occur or circumstances change that indicate an impairment may exist. When assessing goodwill for impairment, first, a qualitative assessment can be made to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its estimated carrying value. If the results of the qualitative assessment are not conclusive, a quantitative goodwill test is performed. Alternatively, a quantitative goodwill test can be performed without performing a qualitative assessment.
The quantitative goodwill test compares the estimated fair value of each reporting unit with its estimated net book value (including goodwill and identifiable intangible assets). If the reporting unit’s estimated fair value exceeds its estimated net book value, goodwill is not impaired. An impairment is recognized if the estimated fair value of a reporting unit is less than its estimated net book value.
To estimate the fair value of each reporting unit, other than Consumer banking, a relative value technique is used because the firm believes market participants would use this technique to value these reporting units. The relative value technique applies observable price-to-earnings multiples or price-to-book multiples of comparable competitors to reporting units’ net earnings or net book value. To estimate the fair value of Consumer banking, a discounted cash flow valuation approach is used because the firm believes market participants would use this technique to value that reporting unit given its early stage of development. The estimated net carrying value of each reporting unit reflects an allocation of total shareholders’ equity and represents the estimated amount of total shareholders’ equity required to support the activities of the reporting unit under currently applicable regulatory capital requirements.
In the fourth quarter of 2019, goodwill was tested for impairment using a quantitative test. The estimated fair value of each of the reporting units exceeded its respective net carrying value, and therefore goodwill was not impaired.
During the first quarter of 2020, the outbreak of the COVID-19 pandemic broadly impacted the operating environment, notably in March, causing a sharp contraction in global economic activity and increased market volatility, affecting both equity and credit markets. Due to the significance of this event in relation to the firm’s businesses, the firm performed a qualitative assessment of the goodwill in each of its reporting units for impairment. Multiple factors, including performance indicators, firm and industry events, macroeconomic indicators and fair value indicators, were assessed with respect to each of the firm’s reporting units to determine whether it was more likely than not that the estimated fair value of any of these reporting units was less than its estimated carrying value. The qualitative assessment also considered changes since the quantitative test performed in the fourth quarter of 2019.
Despite challenges to the firm’s operating environment, net revenues for the first quarter of 2020 were strong across three of the firm’s four business segments and their respective reporting units. Asset Management recorded a net loss for the quarter, due to the impact of market declines on the firm’s investments, which was a reflection of the broader market and not due to a firm-specific issue,
which
more than offset fee revenue generated from increased assets under supervision.
As a result of investor uncertainty and the economic outlook, fair value indicators in the market were negatively impacted, as global equity prices significantly declined and credit spreads widened. This similarly affected fair value indicators for the firm and publicly traded participants in its industry. In response to the macroeconomic concerns, central banks and governments intervened with monetary and fiscal measures aimed at mitigating the extent of the contraction in economic activity, as well as market concerns, and providing liquidity to the financial markets. There were no other events, entity-specific or otherwise, that would have had a significant negative impact on the valuation of the firm’s reporting units.
Based on the qualitative assessment, the firm determined that it was more likely than not that the estimated fair value of each of the reporting units exceeded its respective estimated carrying value, and that the impact of the COVID-19 pandemic through the end of the first quarter of 2020 was not a triggering event to perform a quantitative test.
Goldman Sachs March 2020 Form 10-Q
 
52
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Identifiable Intangible Assets.
The table below presents identifiable intangible assets by reporting unit and type.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December 2019
 
By Reporting Unit
 
 
 
  
 
Global Markets:
 
 
 
 
 
 
FICC
 
 
$
 
       2
 
  
$        3
 
Asset Management
 
 
257
 
  
265
 
Consumer & Wealth Management:
 
Consumer banking
 
 
6
 
  
7
 
Wealth management
 
 
349
 
  
366
 
Total
 
 
$
 
   614
 
  
$    641
 
 
By Type
 
 
 
  
 
Customer lists
 
 
 
  
 
Gross carrying value
 
 
$ 1,427
 
  
$ 1,427
 
Accumulated amortization
 
 
(1,055
)
  
(1,044
)
Net carrying value
 
 
372
 
  
383
 
 
Acquired leases and other
 
 
 
  
 
Gross carrying value
 
 
792
 
  
790
 
Accumulated amortization
 
 
(550
)
  
(532
)
Net carrying value
 
 
242
 
  
258
 
 
Total gross carrying value
 
 
2,219
 
  
2,217
 
Total accumulated amortization
 
 
(1,605
)
  
(1,576
)
Total net carrying value
 
 
$
 
   614
 
  
$    641
 
 
 
 
 
 
 
 
The firm acquired $34 million of intangible assets during the three months ended March 2020, primarily related to acquired leases, with a weighted average amortization period of 8 years. The firm acquired $515 million of intangible assets during 2019, primarily related to customer lists, with a weighted average amortization period of 10 years.
Substantially all of the firm’s identifiable intangible assets have finite useful lives and are amortized over their estimated useful lives generally using the straight-line method.
The tables below present information about the amortization of identifiable intangible assets.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Amortization
 
 
$41
 
  
$43
 
 
 
 
 
 
 
 
 
     
     
$ in millions
 
 
As of March 2020
 
Estimated future amortization
 
 
 
Remainder of 2020
 
 
$84
 
2021
 
 
$89
 
2022
 
 
$78
 
2023
 
 
$72
 
2024
 
 
$61
 
2025
 
 
$42
 
 
 
 
 
 
 
 
The firm tests intangible assets for impairment whenever events or changes in circumstances suggest that an asset’s or asset group’s carrying value may not be fully recoverable. To the extent the carrying value of an asset or asset group exceeds the projected undiscounted cash flows expected to result from the use and eventual disposal of the asset or asset group, the firm determines the asset or asset group is impaired and records an impairment equal to the difference between the estimated fair value and the carrying value of the asset or asset group. In addition, the firm will recognize an impairment prior to the sale of an asset or asset group if the carrying value of the asset or asset group exceeds its estimated fair value. There were no material impairments during each of the three months ended March 2020 and March 2019.
Operating Lease
Right-of-Use
Assets
The firm enters into operating leases for real estate, office equipment and other assets, substantially all of which are used in connection with its operations. For leases longer than one year, the firm recognizes a
right-of-use
asset representing the right to use the underlying asset for the lease term, and a lease liability representing the liability to make payments. The lease term is generally determined based on the contractual maturity of the lease. For leases where the firm has the option to terminate or extend the lease, an assessment of the likelihood of exercising the option is incorporated into the determination of the lease term. Such assessment is initially performed at the inception of the lease and is updated if events occur that impact the original assessment.
An operating lease
right-of-use
asset is initially determined based on the operating lease liability, adjusted for initial direct costs, lease incentives and amounts paid at or prior to lease commencement. This amount is then amortized over the lease term. The firm recognized $51 million for the three months ended March 2020
 
and $
712
 million (primarily related to the firm’s new European headquarters in London) for the three months ended March 2019 of
right-of-use
assets and operating lease liabilities in
non-cash
transactions for leases entered into or assumed. See Note 15 for information about operating lease liabilities.
For leases where the firm will derive no economic benefit from leased space that it has vacated or where the firm has shortened the term of a lease when space is no longer needed, the firm will record an impairment or accelerated amortization of
right-of-use
assets. There were no material impairments or accelerated amortizations during each of the three months ended March 2020 and March 2019.
   
53
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Miscellaneous Receivables and Other
Miscellaneous receivables and other included:
 
•
Investments in qualified affordable housing projects of $671 million as of March 2020 and $606 million as of December 2019.
 
 
 
 
 
 
 
 
•
Assets classified as held for sale of $632 million as of March 2020 and $470 million as of December 2019 related to the firm’s consolidated investments within the Asset Management segment, substantially all of which consisted of property and equipment.
 
 
 
 
 
 
 
Note 13.
Deposits
The table below presents the types and sources of deposits.
 
             
             
$ in millions
  
Savings and Demand
   
Time
   
Total
 
As of March 2020
 
 
 
  
   
 
Private bank deposits
 
 
$  56,437
 
 
 
$  2,292
 
 
 
$  58,729
 
Consumer deposits
 
 
49,843
 
 
 
21,784
 
 
 
71,627
 
Brokered certificates of deposit
 
 
–
 
 
 
38,905
 
 
 
38,905
 
Deposit sweep programs
 
 
19,082
 
 
 
–
 
 
 
19,082
 
Transaction banking
 
 
6,920
 
 
 
2,260
 
 
 
9,180
 
Other deposits
 
 
–
 
 
 
22,471
 
 
 
22,471
 
Total
 
 
$132,282
 
 
 
$87,712
 
 
 
$219,994
 
 
As of December 2019
 
 
 
  
   
 
Private bank deposits
  
$  53,726
   
$  2,087
   
$  55,813
 
Consumer deposits
  
44,973
   
15,023
   
59,996
 
Brokered certificates of deposit
  
–
   
39,449
   
39,449
 
Deposit sweep programs
  
17,760
   
–
   
17,760
 
Transaction banking
  
2,291
   
235
   
2,526
 
Other deposits
  
–
   
14,475
   
14,475
 
Total
  
$118,750
   
$71,269
   
$190,019
 
 
 
 
 
 
 
 
In the table above:
 
•
Substantially all deposits are interest-bearing.
 
 
 
 
 
 
 
 
•
Savings and demand accounts consist of money market deposit accounts, negotiable order of withdrawal accounts and demand deposit accounts that have no stated maturity or expiration date.
 
 
 
 
 
 
 
 
•
Time deposits included $24.72 billion as of March 2020 and $17.77 billion as of December 2019 of deposits accounted for at fair value under the fair value option. See Note 10 for further information about deposits accounted for at fair value.
 
 
 
 
 
 
 
 
•
Time deposits had a weighted average maturity of approximately 1.5 years as of March 2020 and 1.7 years as of December 2019.
 
 
 
 
 
 
 
•
Deposit sweep programs represent long-term contractual agreements with U.S. broker-dealers who sweep client cash to FDIC-insured deposits. As of March 2020, the firm had 12 such deposit sweep program agreements.
 
 
 
 
 
 
 
 
•
Other deposits represent deposits from institutional clients.
 
 
 
 
 
 
 
 
•
Deposits insured by the FDIC were $111.92 billion as of March 2020 and $103.98 billion as of December 2019.
 
 
 
 
 
 
 
 
•
Deposits insured by the U.K.’s Financial Services Compensation Scheme were $18.99 billion as of March 2020 and $15.86 billion as of December 2019.
The table below presents the location of deposits.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
U.S. offices
 
 
$168,992
 
  
$150,759
 
Non-U.S.
offices
 
 
51,002
 
  
39,260
 
Total
 
 
$219,994
 
  
$190,019
 
 
 
 
 
 
 
 
In the table above, U.S. deposits were held at GS Bank USA and substantially all
non-U.S.
deposits were held at Goldman Sachs International Bank (GSIB).
The table below presents maturities of time deposits held in U.S. and
non-U.S.
offices.
 
             
    
 
As of March 2020
 
             
$ in millions
 
 
U.S.
 
 
 
Non-U.S.
 
 
 
Total
 
Remainder of 2020
 
 
$25,358
 
 
 
$17,200
 
 
 
$
 
42,558
 
2021
 
 
18,487
 
 
 
1,356
 
 
 
19,843
 
2022
 
 
8,857
 
 
 
80
 
 
 
8,937
 
2023
 
 
6,498
 
 
 
112
 
 
 
6,610
 
2024
 
 
4,393
 
 
 
115
 
 
 
4,508
 
2025
 
 
2,155
 
 
 
226
 
 
 
2,381
 
2026 - thereafter
 
 
2,072
 
 
 
803
 
 
 
2,875
 
Total
 
 
$67,820
 
 
 
$19,892
 
 
 
$87,712
 
 
 
 
 
 
 
 
As of March 2020, deposits in U.S. offices included
$14.35 billion and deposits in
non-U.S.
offices included $19.52
 billion of time deposits in denominations that met or exceeded the applicable insurance limits, or were otherwise not covered by insurance.
The firm’s savings and demand deposits are recorded based on the amount of cash received plus accrued interest, which approximates fair value. In addition, the firm designates certain derivatives as fair value hedges to convert a portion of its time deposits not accounted for at fair value from fixed-rate obligations into floating-rate obligations. The carrying value of time deposits not accounted for at fair value approximated fair value as of both March 2020 and December 2019. As these savings and demand deposits and time deposits are not accounted for at fair value, they are not included in the firm’s fair value hierarchy in Notes 4 through 10. Had these deposits been included in the firm’s fair value hierarchy, they would have been classified in level 2 as of both March 2020 and December 2019.
   
Goldman Sachs March 2020 Form 10-Q
 
54
 
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 14.
Unsecured Borrowings
The table below presents information about unsecured borrowings.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Unsecured short-term borrowings
 
 
$  37,148
 
  
$  48,287
 
Unsecured long-term borrowings
 
 
225,476
 
  
207,076
 
Total
 
 
$262,624
 
  
$255,363
 
 
Unsecured Short-Term Borrowings
Unsecured short-term borrowings includes the portion of unsecured long-term borrowings maturing within one year of the financial statement date and unsecured long-term borrowings that are redeemable within one year of the financial statement date at the option of the holder.
The firm accounts for certain hybrid financial instruments at fair value under the fair value option. See Note 10 for further information about unsecured short-term borrowings that are accounted for at fair value. In addition, the firm designates certain derivatives as fair value hedges to convert a portion of its unsecured short-term borrowings not accounted for at fair value from fixed-rate obligations into floating-rate obligations. The carrying value of unsecured short-term borrowings that are not recorded at fair value generally approximates fair value due to the short-term nature of the obligations. As these unsecured short-term borrowings are not accounted for at fair value, they are not included in the firm’s fair value hierarchy in Notes 4 through 10. Had these borrowings been included in the firm’s fair value hierarchy, substantially all would have been classified in level 2 as of both March 2020 and December 2019.
The table below presents information about unsecured short-term borrowings.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Current portion of unsecured long-term borrowings
 
 
$22,532
 
  
$  30,636
 
Hybrid financial instruments
 
 
12,635
 
  
15,814
 
Other unsecured short-term borrowings
 
 
1,981
 
  
1,837
 
Total unsecured short-term borrowings
 
 
$37,148
 
  
$  48,287
 
 
Weighted average interest rate
 
 
2.22%
 
  
2.71%
 
 
In the table above, the weighted average interest rates for these borrowings include the effect of hedging activities and exclude unsecured short-term borrowings accounted for at fair value under the fair value option. See Note 7 for further information about hedging activities.
Unsecured Long-Term Borrowings
The table below presents information about unsecured long-term borrowings.
 
             
             
$ in millions
  
U.S.
Dollar
   
Non-U.S.
Dollar
   
Total
 
As of March 2020
 
 
 
  
   
 
Fixed-rate obligations
 
 
$107,774
 
 
 
$39,008
 
 
 
$146,782
 
Floating-rate obligations
 
 
47,041
 
 
 
31,653
 
 
 
78,694
 
Total
 
 
$154,815
 
 
 
$70,661
 
 
 
$225,476
 
 
As of December 2019
 
 
 
  
   
 
Fixed-rate obligations
  
$  92,846
   
$36,185
   
$129,031
 
Floating-rate obligations
  
47,850
   
30,195
   
78,045
 
Total
  
$140,696
   
$66,380
   
$207,076
 
 
In the table above:
 
•
Unsecured long-term borrowings consists principally of senior borrowings, which have maturities extending through 2067.
 
 
•
Floating-rate obligations includes equity-linked and indexed instruments. Floating interest rates are generally based on LIBOR or Euro Interbank Offered Rate.
 
 
•
U.S. dollar-denominated debt had interest rates ranging from 2.00% to 10.04% (with a weighted average rate of 4.22%) as of March 2020 and 2.00% to 10.04% (with a weighted average rate of 3.82%) as of December 2019. These rates exclude unsecured long-term borrowings accounted for at fair value under the fair value option.
 
 
•
Non-U.S.
dollar-denominated debt had interest rates ranging from 0.13% to 13.00% (with a weighted average rate of 2.30%) as of March 2020 and 0.13% to 13.00% (with a weighted average rate of 2.33%) as of December 2019. These rates exclude unsecured long-term borrowings accounted for at fair value under the fair value option.
 
   
55
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents unsecured long-term borrowings by maturity.
 
     
     
$ in millions
 
 
As of
March 2020
 
2021
 
 
$  24,653
 
2022
 
 
25,114
 
2023
 
 
28,607
 
2024
 
 
19,162
 
2025
 
 
23,720
 
2026 - thereafter
 
 
104,220
 
Total
 
 
$225,476
 
 
In the table above:
 
•
Unsecured long-term borrowings maturing within one year of the financial statement date and unsecured long-term borrowings that are redeemable within one year of the financial statement date at the option of the holder are excluded as they are included in unsecured short-term borrowings.
 
 
•
Unsecured long-term borrowings that are repayable prior to maturity at the option of the firm are reflected at their contractual maturity dates.
 
 
•
Unsecured long-term borrowings that are redeemable prior to maturity at the option of the holder are reflected at the earliest dates such options become exercisable.
 
 
•
Unsecured long-term borrowings included $13.76 billion of adjustments to the carrying value of certain unsecured long-term borrowings resulting from the application of hedge accounting by year of maturity as follows: $288 million in 2021, $(26) million in 2022, $273 million in 2023, $762 million in 2024, $915 million in 2025 and $11.55 billion in 2026 and thereafter.
 
The firm designates certain derivatives as fair value hedges to convert a portion of fixed-rate unsecured long-term borrowings not accounted for at fair value into floating-rate obligations. See Note 7 for further information about hedging activities.
The table below presents unsecured long-term borrowings, after giving effect to such hedging activities.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Fixed-rate obligations:
 
 
 
  
 
At fair value
 
 
$    1,385
 
  
$       725
 
At amortized cost
 
 
50,062
 
  
47,577
 
Floating-rate obligations:
 
 
 
  
 
At fair value
 
 
41,928
 
  
42,936
 
At amortized cost
 
 
132,101
 
  
115,838
 
Total
 
 
$225,476
 
  
$207,076
 
 
In the table above, the aggregate amounts of unsecured long-term borrowings had weighted average interest rates of 2.59% (3.82% related to fixed-rate obligations and 2.08% related to floating-rate obligations) as of March 2020 and 2.87% (3.77% related to fixed-rate obligations and 2.48% related to floating-rate obligations) as of December 2019. These rates exclude unsecured long-term borrowings accounted for at fair value under the fair value option.
As of both March 2020 and December 2019, the carrying value of unsecured long-term borrowings for which the firm did not elect the fair value option approximated fair value. As these borrowings are not accounted for at fair value, they are not included in the firm’s fair value hierarchy in Notes 4 through 10. Had these borrowings been included in the firm’s fair value hierarchy, substantially all would have been classified in level 2 as of both March 2020 and December 2019.
Subordinated Borrowings
Unsecured long-term borrowings includes subordinated debt and junior subordinated debt. Junior subordinated debt is junior in right of payment to other subordinated borrowings, which are junior to senior borrowings. Subordinated debt had maturities ranging from 2021 to 2045 as of both March 2020 and December 2019. Subordinated debt that matures within one year is included in unsecured short-term borrowings.
   
Goldman Sachs March 2020 Form 10-Q
 
56
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents information about subordinated borrowings.
 
             
             
$ in millions
  
Par Amount
   
Carrying Value
   
Rate
 
As of March 2020
 
 
 
  
   
 
Subordinated debt
 
 
$13,797
 
 
 
$19,199
 
 
 
3.30%
 
Junior subordinated debt
 
 
968
 
 
 
1,499
 
 
 
2.71%
 
Total
 
 
$14,765
 
 
 
$20,698
 
 
 
3.26%
 
 
As of December 2019
 
 
 
  
   
 
Subordinated debt
  
$14,041
   
$16,980
   
3.46%
 
Junior subordinated debt
  
976
   
1,328
   
2.85%
 
Total
  
$15,017
   
$18,308
   
3.42%
 
 
 
 
 
 
In the table above, the rate is the weighted average interest rate for these borrowings (excluding borrowings accounted for at fair value under the fair value option), including the effect of fair value hedges used to convert fixed-rate obligations into floating-rate obligations. See Note 7 for further information about hedging activities.
Junior Subordinated Debt
In 2004, Group Inc. issued $2.84 billion of junior subordinated debt to Goldman Sachs Capital I (Trust), a Delaware statutory trust. The Trust issued $2.75 billion of guaranteed preferred beneficial interests (Trust Preferred securities) to third parties and $85 million of common beneficial interests to Group Inc. As of March 2020, the outstanding par amount of junior subordinated debt held by the Trust was $968 million and the outstanding par amount of Trust Preferred securities and common beneficial interests issued by the Trust was $939 million and $29 million, respectively. As of December 2019, the outstanding par amount of junior subordinated debt held by the Trust was $976 million and the outstanding par amount of Trust Preferred securities and common beneficial interests issued by the Trust was $947 million and $29 million, respectively.
During the three months ended March 2020, the firm purchased Trust Preferred securities with a par amount and a carrying value of $7.9 million and $11.0 million and delivered these securities, along with $0.2 million of common beneficial interests, to the Trust in a
non-cash
exchange for junior subordinated debt with a par amount and carrying value of $8.1 million and $12.5 million, respectively. Following the exchange, these Trust Preferred securities, common beneficial interests and junior subordinated debt were extinguished. The Trust is a wholly-owned finance subsidiary of the firm for regulatory and legal purposes but is not consolidated for accounting purposes.
The firm pays interest semi-annually on the junior subordinated debt at an annual rate of 6.345% and the debt matures on February 15, 2034. The coupon rate and the payment dates applicable to the beneficial interests are the same as the interest rate and payment dates for the junior subordinated debt. The firm has the right, from time to time, to defer payment of interest on the junior subordinated debt, and therefore cause payment on the Trust’s preferred beneficial interests to be deferred, in each case up to ten consecutive semi-annual periods. During any such deferral period, the firm will not be permitted to, among other things, pay dividends on or make certain repurchases of its common stock. The Trust is not permitted to pay any distributions on the common beneficial interests held by Group Inc. unless all dividends payable on the preferred beneficial interests have been paid in full.
The firm has covenanted in favor of the holders of Group Inc.’s 6.345% junior subordinated debt due February 15, 2034, that, subject to certain exceptions, the firm will not redeem or purchase the capital securities issued by Goldman Sachs Capital II and Goldman Sachs Capital III (APEX Trusts) or shares of Group Inc.’s Perpetual
Non-Cumulative
Preferred Stock, Series E (Series E Preferred Stock), Perpetual
Non-Cumulative
Preferred Stock, Series F (Series F Preferred Stock) or Perpetual
Non-Cumulative
Preferred Stock, Series O, if the redemption or purchase results in less than $253 million aggregate liquidation preference of that series outstanding, prior to specified dates in 2022 for a price that exceeds a maximum amount determined by reference to the net cash proceeds that the firm has received from the sale of qualifying securities.
The APEX Trusts hold Group Inc.’s Series E Preferred Stock and Series F Preferred Stock. These trusts are Delaware statutory trusts sponsored by the firm and wholly-owned finance subsidiaries of the firm for regulatory and legal purposes but are not consolidated for accounting purposes.
   
57
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 15.
Other Liabilities
The table below presents other liabilities by type.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Compensation and benefits
 
 
$  3,281
 
  
$  6,889
 
Income
tax-related
liabilities
 
 
3,172
 
  
2,947
 
Operating lease liabilities
 
 
2,289
 
  
2,385
 
Noncontrolling interests
 
 
1,122
 
  
1,713
 
Employee interests in consolidated funds
 
 
71
 
  
81
 
Accrued expenses and other
 
 
 
8,359
 
  
7,636
 
Total
 
 
$18,294
 
  
$21,651
 
 
 
 
 
 
In the table above, accrued expenses and other includes contract liabilities, which represent consideration received by the firm in connection with its contracts with clients, prior to providing the service. As of both March 2020 and December 2019, the firm’s contract liabilities were not material.
Operating Lease Liabilities
For leases longer than one year, the firm recognizes a
right-of-use
asset representing the right to use the underlying asset for the lease term, and a lease liability representing the liability to make payments. See Note 12 for information about operating lease
right-of-use
assets.
The table below presents information about operating lease liabilities.
 
     
     
$ in millions
  
Operating
lease liabilities
 
As of March 2020
 
 
 
Remainder of 2020
 
 
$   
  
247
 
2021
 
 
307
 
2022
 
 
266
 
2023
 
 
233
 
2024
 
 
218
 
2025
 
 
192
 
2026 - thereafter
 
 
2,365
 
Total undiscounted lease payments
 
 
3,828
 
Imputed interest
 
 
(1,539
)
Total operating lease liabilities
 
 
$ 2,289
 
 
Weighted average remaining lease term
 
 
18 years
 
Weighted average discount rate
 
 
5.07%
 
 
As of December 2019
 
 
 
2020
  
$
 
  
  
384
 
2021
  
308
 
2022
  
268
 
2023
  
235
 
2024
  
219
 
2025 - thereafter
  
2,566
 
Total undiscounted lease payments
  
3,980
 
Imputed interest
  
(1,595
)
Total operating lease liabilities
  
$
 
2,385
 
 
Weighted average remaining lease term
  
18 years
 
Weighted average discount rate
  
5.02%
 
 
 
 
 
 
In the table above, the weighted average discount rate represents the firm’s incremental borrowing rate as of January 2019 for operating leases existing on the date of adoption of ASU No.
 2016-02
and at the lease inception date for leases entered into subsequent to the adoption of this ASU.
Operating lease costs were $113 million for the three months ended March 2020 and $117 million for the three months ended March 2019. Variable lease costs, which are included in operating lease costs, were not material for both the three months ended March 2020 and March 2019.
Operating lease liabilities include obligations for office space held in excess of current requirements. Operating lease costs relating to space held for growth is included in occupancy expenses. Total occupancy expenses for space held in excess of the firm’s current requirements were not material for both the three months ended March 2020 and March 2019.
Lease payments relating to operating lease arrangements that were signed, but had not yet commenced as of March 2020, were not material.
   
Goldman Sachs March 2020 Form 10-Q
 
58
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 16.
Securitization Activities
The firm securitizes residential and commercial mortgages, corporate bonds, loans and other types of financial assets by selling these assets to securitization vehicles (e.g., trusts, corporate entities and limited liability companies) or through a resecuritization. The firm acts as underwriter of the beneficial interests that are sold to investors. The firm’s residential mortgage securitizations are primarily in connection with government agency securitizations.
The firm accounts for a securitization as a sale when it has relinquished control over the transferred financial assets. Prior to securitization, the firm generally accounts for assets pending transfer at fair value and therefore does not typically recognize significant gains or losses upon the transfer of assets. Net revenues from underwriting activities are recognized in connection with the sales of the underlying beneficial interests to investors.
The firm generally receives cash in exchange for the transferred assets but may also have continuing involvement with the transferred financial assets, including ownership of beneficial interests in securitized financial assets, primarily in the form of debt instruments. The firm may also purchase senior or subordinated securities issued by securitization vehicles (which are typically VIEs) in connection with secondary market-making activities.
The primary risks included in beneficial interests and other interests from the firm’s continuing involvement with securitization vehicles are the performance of the underlying collateral, the position of the firm’s investment in the capital structure of the securitization vehicle and the market yield for the security. Interests accounted for at fair value are classified in level 2 of the fair value hierarchy. Interests not accounted for at fair value are carried at amounts that approximate fair value. See Notes 4 through 10 for further information about fair value measurements.
The table below presents the amount of financial assets securitized and the cash flows received on retained interests in securitization entities in which the firm had continuing involvement as of the end of the period.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Residential mortgages
 
 
$3,107
 
  
$3,489
 
Commercial mortgages
 
 
4,996
 
  
671
 
Other financial assets
 
 
540
 
  
172
 
Total financial assets securitized
 
 
$8,643
 
  
$4,332
 
 
Retained interests cash flows
 
 
$    
 
94
 
  
$     93
 
 
 
 
 
 
In the table above, financial assets securitized included assets of $174 million during the three months ended March 2020 and $104 million during the three months ended March 2019, which were securitized in a
non-cash
exchange for loans and
held-to-maturity
securities.
The table below presents information about nonconsolidated securitization entities to which the firm sold assets and had continuing involvement as of the end of the period.
 
             
             
$ in millions
  
Outstanding
Principal
Amount
   
Retained
Interests
   
Purchased
Interests
 
As of March 2020
 
 
 
  
   
 
U.S. government agency-issued CMOs
 
 
$14,309
 
 
 
$  
  
935
 
 
 
$14
 
Other residential mortgage-backed
 
 
23,121
 
 
 
1,047
 
 
 
25
 
Other commercial mortgage-backed
 
 
29,350
 
 
 
708
 
 
 
19
 
Corporate debt and other asset-backed
 
 
3,851
 
 
 
156
 
 
 
4
 
Total
 
 
$70,631
 
 
 
$2,846
 
 
 
$62
 
 
As of December 2019
 
 
 
  
   
 
U.S. government agency-issued CMOs
  
$14,328
   
$1,530
   
$  3
 
Other residential mortgage-backed
  
24,166
   
1,078
   
24
 
Other commercial mortgage-backed
  
25,588
   
615
   
6
 
Corporate debt and other asset-backed
  
3,612
   
149
   
–
 
Total
  
$67,694
   
$3,372
   
$33
 
 
 
 
 
 
   
59
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
In the table above:
 
•
CMOs represents collateralized mortgage obligations.
 
 
 
 
 
 
 
•
The outstanding principal amount is presented for the purpose of providing information about the size of the securitization entities and is not representative of the firm’s risk of loss.
 
 
 
 
 
 
 
•
The firm’s risk of loss from retained or purchased interests is limited to the carrying value of these interests.
 
 
 
 
 
 
 
•
Purchased interests represent senior and subordinated interests, purchased in connection with secondary market-making activities, in securitization entities in which the firm also holds retained interests.
 
 
 
 
 
 
 
•
Substantially all of the total outstanding principal amount and total retained interests relate to securitizations during 2014 and thereafter.
 
 
 
 
 
 
 
•
The fair value of retained interests was $2.84 billion as of March 2020 and $3.35 billion as of December 2019.
 
 
 
 
 
In addition to the interests in the table above, the firm had other continuing involvement in the form of derivative transactions and commitments with certain nonconsolidated VIEs. The carrying value of these derivatives and commitments was a net asset of $94 million as of March 2020 and $57 million as of December 2019, and the notional amount of these derivatives and commitments was $1.44 billion as of March 2020 and $1.20 billion as of December 2019. The notional amounts of these derivatives and commitments are included in maximum exposure to loss in the nonconsolidated VIE table in Note 17.
The table below presents information about the weighted average key economic assumptions used in measuring the fair value of mortgage-backed retained interests.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Fair value of retained interests
 
 
$
 
2,681
 
  
$
  
3,198
 
Weighted average life (years)
 
 
5.2
 
  
6.0
 
Constant prepayment rate
 
 
14.9%
 
  
12.9%
 
Impact of 10% adverse change
 
 
$
 
  
  
(23
)
  
$
  
    (22
)
Impact of 20% adverse change
 
 
$
 
  
  
(44
)
  
$
  
    (42
)
Discount rate
 
 
5.8%
 
  
4.7%
 
Impact of 10% adverse change
 
 
$
 
  
  
(50
)
  
$
  
    (59
)
Impact of 20% adverse change
 
 
$
 
  
  
(97
)
  
$
  
  (117
)
 
 
 
 
 
 
In the table above:
 
•
Amounts do not reflect the benefit of other financial instruments that are held to mitigate risks inherent in these retained interests.
 
 
 
 
 
 
 
•
Changes in fair value based on an adverse variation in assumptions generally cannot be extrapolated because the relationship of the change in assumptions to the change in fair value is not usually linear.
 
 
 
 
 
 
 
•
The impact of a change in a particular assumption is calculated independently of changes in any other assumption. In practice, simultaneous changes in assumptions might magnify or counteract the sensitivities disclosed above.
 
 
 
 
 
 
 
•
The constant prepayment rate is included only for positions for which it is a key assumption in the determination of fair value.
 
 
 
 
 
 
 
•
The discount rate for retained interests that relate to U.S. government agency-issued CMOs does not include any credit loss. Expected credit loss assumptions are reflected in the discount rate for the remainder of retained interests.
 
 
 
 
 
The firm has other retained interests not reflected in the table above with a fair value of $156 million and a weighted average life of 2.9 years as of March 2020, and a fair value of $149 million and a weighted average life of 3.3 years as of December 2019. Due to the nature and fair value of certain of these retained interests, the weighted average assumptions for constant prepayment and discount rates and the related sensitivity to adverse changes are not meaningful as of both March 2020 and December 2019. The firm’s maximum exposure to adverse changes in the value of these interests is the carrying value of $156 million as of March 2020 and $149 million as of December 2019.
   
Goldman Sachs March 2020 Form 10-Q
 
60
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 17.
Variable Interest Entities
A variable interest in a VIE is an investment (e.g., debt or equity) or other interest (e.g., derivatives or loans and lending commitments) that will absorb portions of the VIE’s expected losses and/or receive portions of the VIE’s expected residual returns.
The firm’s variable interests in VIEs include senior and subordinated debt; loans and lending commitments; limited and general partnership interests; preferred and common equity; derivatives that may include foreign currency, equity and/or credit risk; guarantees; and certain of the fees the firm receives from investment funds. Certain interest rate, foreign currency and credit derivatives the firm enters into with VIEs are not variable interests because they create, rather than absorb, risk.
VIEs generally finance the purchase of assets by issuing debt and equity securities that are either collateralized by or indexed to the assets held by the VIE. The debt and equity securities issued by a VIE may include tranches of varying levels of subordination. The firm’s involvement with VIEs includes securitization of financial assets, as described in Note 16, and investments in and loans to other types of VIEs, as described below. See Note 3 for the firm’s consolidation policies, including the definition of a VIE.
VIE Consolidation Analysis
The enterprise with a controlling financial interest in a VIE is known as the primary beneficiary and consolidates the VIE. The firm determines whether it is the primary beneficiary of a VIE by performing an analysis that principally considers:
 
•
Which variable interest holder has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance;
 
 
•
Which variable interest holder has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE;
 
 
•
The VIE’s purpose and design, including the risks the VIE was designed to create and pass through to its variable interest holders;
 
 
•
The VIE’s capital structure;
 
 
•
The terms between the VIE and its variable interest holders and other parties involved with the VIE; and
 
 
•
Related-party relationships.
 
The firm reassesses its evaluation of whether an entity is a VIE when certain reconsideration events occur. The firm reassesses its determination of whether it is the primary beneficiary of a VIE on an ongoing basis based on current facts and circumstances.
VIE Activities
The firm is principally involved with VIEs through the following business activities:
Mortgage-Backed VIEs.
The firm sells residential and commercial mortgage loans and securities to mortgage-backed VIEs and may retain beneficial interests in the assets sold to these VIEs. The firm purchases and sells beneficial interests issued by mortgage-backed VIEs in connection with market-making activities. In addition, the firm may enter into derivatives with certain of these VIEs, primarily interest rate swaps, which are typically not variable interests. The firm generally enters into derivatives with other counterparties to mitigate its risk.
Real Estate, Credit- and Power-Related and Other Investing VIEs.
The firm purchases equity and debt securities issued by and makes loans to VIEs that hold real estate, performing and nonperforming debt, distressed loans, power-related assets and equity securities. The firm generally does not sell assets to, or enter into derivatives with, these VIEs.
Corporate Debt and Other Asset-Backed VIEs.
The firm structures VIEs that issue notes to clients, purchases and sells beneficial interests issued by corporate debt and other asset-backed VIEs in connection with market-making activities, and makes loans to VIEs that warehouse corporate debt. Certain of these VIEs synthetically create the exposure for the beneficial interests they issue by entering into credit derivatives with the firm, rather than purchasing the underlying assets. In addition, the firm may enter into derivatives, such as total return swaps, with certain corporate debt and other asset-backed VIEs, under which the firm pays the VIE a return due to the beneficial interest holders and receives the return on the collateral owned by the VIE. The collateral owned by these VIEs is primarily other asset-backed loans and securities. The firm generally can be removed as the total return swap counterparty and enters into derivatives with other counterparties to mitigate its risk related to these swaps. The firm may sell assets to the corporate debt and other asset-backed VIEs it structures.
   
61
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Principal-Protected Note VIEs.
The firm structures VIEs that issue principal-protected notes to clients. These VIEs own portfolios of assets, principally with exposure to hedge funds. Substantially all of the principal protection on the notes issued by these VIEs is provided by the asset portfolio rebalancing that is required under the terms of the notes. The firm enters into total return swaps with these VIEs under which the firm pays the VIE the return due to the principal-protected note holders and receives the return on the assets owned by the VIE. The firm may enter into derivatives with other counterparties to mitigate its risk. The firm also obtains funding through these VIEs.
Investments in Funds.
The firm makes equity investments in certain investment fund VIEs it manages and is entitled to receive fees from these VIEs. The firm has generally not sold assets to, or entered into derivatives with, these VIEs.
Nonconsolidated VIEs
The table below presents a summary of the nonconsolidated VIEs in which the firm holds variable interests.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Total nonconsolidated VIEs
 
 
 
  
 
Assets in VIEs
 
 
$128,603
 
  
$128,069
 
Carrying value of variable interests — assets
 
 
$  10,390
 
  
$    9,526
 
Carrying value of variable interests — liabilities
 
 
$      
 
877
 
  
$       619
 
Maximum exposure to loss:
 
 
 
  
 
Retained interests
 
 
$    2,846
 
  
$    3,372
 
Purchased interests
 
 
2,418
 
  
901
 
Commitments and guarantees
 
 
2,329
 
  
2,697
 
Derivatives
 
 
8,689
 
  
9,010
 
Debt and equity
 
 
4,719
 
  
4,806
 
Total maximum exposure to loss
 
 
$  21,001
 
  
$  20,786
 
 
In the table above:
 
•
The nature of the firm’s variable interests is described in the rows under maximum exposure to loss.
 
 
•
The firm’s exposure to the obligations of VIEs is generally limited to its interests in these entities. In certain instances, the firm provides guarantees, including derivative guarantees, to VIEs or holders of variable interests in VIEs.
 
 
•
The maximum exposure to loss excludes the benefit of offsetting financial instruments that are held to mitigate the risks associated with these variable interests.
 
 
•
The maximum exposure to loss from retained interests, purchased interests, and debt and equity is the carrying value of these interests.
 
 
•
The maximum exposure to loss from commitments and guarantees, and derivatives is the notional amount, which does not represent anticipated losses and has not been reduced by unrealized losses. As a result, the maximum exposure to loss exceeds liabilities recorded for commitments and guarantees, and derivatives.
 
The table below presents information, by principal business activity, for nonconsolidated VIEs included in the summary table above.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Mortgage-backed
 
 
 
  
 
Assets in VIEs
 
 
$77,153
 
  
$75,354
 
Carrying value of variable interests — assets
 
 
$  3,323
 
  
$  3,830
 
Maximum exposure to loss:
 
 
 
  
 
Retained interests
 
 
$  2,690
 
  
$  3,223
 
Purchased interests
 
 
631
 
  
607
 
Commitments and guarantees
 
 
43
 
  
50
 
Derivatives
 
 
402
 
  
66
 
Total maximum exposure to loss
 
 
$  3,766
 
  
$  3,946
 
Real estate, credit- and power-related and other investing
 
Assets in VIEs
 
 
$19,442
 
  
$19,602
 
Carrying value of variable interests — assets
 
 
$  3,066
 
  
$  3,243
 
Carrying value of variable interests — liabilities
 
 
$        
 
3
 
  
$         7
 
Maximum exposure to loss:
 
 
 
  
 
Commitments and guarantees
 
 
$    
 
944
 
  
$  1,213
 
Derivatives
 
 
83
 
  
92
 
Debt and equity
 
 
3,066
 
  
3,238
 
Total maximum exposure to loss
 
 
$  4,093
 
  
$  4,543
 
Corporate debt and other asset-backed
 
 
 
  
 
Assets in VIEs
 
 
$17,141
 
  
$16,248
 
Carrying value of variable interests — assets
 
 
$  3,598
 
  
$  2,040
 
Carrying value of variable interests — liabilities
 
 
$    
 
874
 
  
$     612
 
Maximum exposure to loss:
 
 
 
  
 
Retained interests
 
 
$    
 
156
 
  
$     149
 
Purchased interests
 
 
1,787
 
  
294
 
Commitments and guarantees
 
 
1,294
 
  
1,374
 
Derivatives
 
 
8,201
 
  
8,849
 
Debt and equity
 
 
1,250
 
  
1,155
 
Total maximum exposure to loss
 
 
$12,688
 
  
$11,821
 
Investments in funds
 
 
 
  
 
Assets in VIEs
 
 
$14,867
 
  
$16,865
 
Carrying value of variable interests — assets
 
 
$    
 
403
 
  
$     413
 
Maximum exposure to loss:
 
 
 
  
 
Commitments and guarantees
 
 
$      
 
48
 
  
$       60
 
Derivatives
 
 
3
 
  
3
 
Debt and equity
 
 
403
 
  
413
 
Total maximum exposure to loss
 
 
$    
 
454
 
  
$     476
 
 
   
Goldman Sachs March 2020 Form 10-Q
 
62
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
As of both March 2020 and December 2019, the carrying values of the firm’s variable interests in nonconsolidated VIEs are included in the consolidated balance sheets as follows:
 
•
Mortgage-backed: Assets were primarily included in trading assets and loans.
 
 
•
Real estate, credit- and power-related and other investing: Assets were primarily included in loans and investments and liabilities were included in trading liabilities and other liabilities.
 
 
•
Corporate debt and other asset-backed: Assets were included in trading assets and loans and liabilities were included in trading liabilities.
 
 
•
Investments in funds: Assets were included in investments.
 
Consolidated VIEs
The table below presents a summary of the carrying value and balance sheet classification of assets and liabilities in consolidated VIEs.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Total consolidated VIEs
 
 
 
  
 
Assets
 
 
 
  
 
Cash and cash equivalents
 
 
$  
 
148
 
  
$   112
 
Trading assets
 
 
1
 
  
27
 
Investments
 
 
144
 
  
835
 
Loans
 
 
2,082
 
  
2,392
 
Other assets
 
 
1,100
 
  
1,084
 
Total
 
 
$3,475
 
  
$4,450
 
Liabilities
  
   
 
Other secured financings
 
 
$1,088
 
  
$1,163
 
Customer and other payables
 
 
9
 
  
9
 
Trading liabilities
 
 
9
 
  
10
 
Unsecured short-term borrowings
 
 
46
 
  
48
 
Unsecured long-term borrowings
 
 
207
 
  
214
 
Other liabilities
 
 
312
 
  
959
 
Total
 
 
$1,671
 
  
$2,403
 
 
In the table above:
 
•
Assets and liabilities are presented net of intercompany eliminations and exclude the benefit of offsetting financial instruments that are held to mitigate the risks associated with the firm’s variable interests.
 
 
•
VIEs in which the firm holds a majority voting interest are excluded if (i) the VIE meets the definition of a business and (ii) the VIE’s assets can be used for purposes other than the settlement of its obligations.
 
 
•
Substantially all assets can only be used to settle obligations of the VIE.
 
The table below presents information, by principal business activity, for consolidated VIEs included in the summary table above.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Real estate, credit-related and other investing
 
 
 
  
 
Assets
 
 
 
  
 
Cash and cash equivalents
 
 
$  
 
148
 
  
$   112
 
Trading assets
 
 
–
 
  
26
 
Investments
 
 
144
 
  
835
 
Loans
 
 
2,082
 
  
2,392
 
Other assets
 
 
1,100
 
  
1,084
 
Total
 
 
$3,474
 
  
$4,449
 
Liabilities
 
 
 
  
 
Other secured financings
 
 
$  
 
612
 
  
$   684
 
Customer and other payables
 
 
9
 
  
9
 
Trading liabilities
 
 
9
 
  
10
 
Other liabilities
 
 
312
 
  
959
 
Total
 
 
$  
 
942
 
  
$1,662
 
Principal-protected notes
 
 
 
  
 
Assets
 
 
 
  
 
Trading assets
 
 
$      
 
1
 
  
$       1
 
Total
 
 
$      
 
1
 
  
$       1
 
Liabilities
 
 
 
  
 
Other secured financings
 
 
$  
 
476
 
  
$   479
 
Unsecured short-term borrowings
 
 
46
 
  
48
 
Unsecured long-term borrowings
 
 
207
 
  
214
 
Total
 
 
$  
 
729
 
  
$   741
 
 
In the table above:
 
•
The majority of the assets in principal-protected notes VIEs are intercompany and are eliminated in consolidation.
 
 
•
Creditors and beneficial interest holders of real estate, credit-related and other investing VIEs do not have recourse to the general credit of the firm.
 
   
63
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 18.
Commitments, Contingencies and Guarantees
Commitments
The table below presents commitments by type.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Commitment Type
 
 
 
  
 
Commercial lending:
 
 
 
  
 
Investment-grade
 
 
$  76,791
 
  
$  89,276
 
Non-investment-grade
 
 
51,208
 
  
58,718
 
Warehouse financing
 
 
7,519
 
  
5,581
 
Credit cards
 
 
16,447
 
  
13,669
 
Total lending
 
 
151,965
 
  
167,244
 
Collateralized agreement
 
 
64,243
 
  
62,093
 
Collateralized financing
 
 
18,845
 
  
10,193
 
Letters of credit
 
 
374
 
  
456
 
Investment
 
 
5,812
 
  
7,879
 
Other
 
 
9,027
 
  
6,135
 
Total commitments
 
 
$250,266
 
  
$254,000
 
 
The table below presents commitments by expiration.
 
                 
    
 
As of March 2020
 
                 
$ in millions
 
 
Remainder of 2020
 
 
 
2021 - 2022
 
 
 
2023 - 2024
 
 
 
2025 - Thereafter
 
Commitment Type
 
 
 
  
   
   
 
Commercial lending:
 
 
 
  
   
   
 
Investment-grade
 
 
$    8,002
 
 
 
$27,196
 
 
 
$35,485
 
 
 
$  6,108
 
Non-investment-grade
 
 
3,337
 
 
 
16,676
 
 
 
20,843
 
 
 
10,352
 
Warehouse financing
 
 
927
 
 
 
5,103
 
 
 
1,295
 
 
 
194
 
Credit cards
 
 
16,447
 
 
 
–
 
 
 
–
 
 
 
–
 
Total lending
 
 
28,713
 
 
 
48,975
 
 
 
57,623
 
 
 
16,654
 
Collateralized agreement
 
 
63,747
 
 
 
496
 
 
 
–
 
 
 
–
 
Collateralized financing
 
 
18,845
 
 
 
–
 
 
 
–
 
 
 
–
 
Letters of credit
 
 
299
 
 
 
35
 
 
 
–
 
 
 
40
 
Investment
 
 
1,657
 
 
 
1,422
 
 
 
1,059
 
 
 
1,674
 
Other
 
 
8,909
 
 
 
118
 
 
 
–
 
 
 
–
 
Total commitments
 
 
$122,170
 
 
 
$51,046
 
 
 
$58,682
 
 
 
$18,368
 
 
Lending Commitments
The firm’s commercial and warehouse financing lending commitments are agreements to lend with fixed termination dates and depend on the satisfaction of all contractual conditions to borrowing. These commitments are presented net of amounts syndicated to third parties. The total commitment amount does not necessarily reflect actual future cash flows because the firm may syndicate all or substantial portions of these commitments. In addition, commitments can expire unused or be reduced or cancelled at the counterparty’s request. The firm also provides credit to consumers by issuing credit card lines.
The table below presents information about lending commitments.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Held for investment
 
 
$133,501
 
  
$150,100
 
Held for sale
 
 
15,419
 
  
15,245
 
At fair value
 
 
3,045
 
  
1,899
 
Total
 
 
$151,965
 
  
$167,244
 
 
In the table above:
 
•
Held for investment lending commitments are accounted for at amortized cost. The carrying value of lending commitments was a liability of $460 million (including allowance for losses of $335 million) as of March 2020 and $527 million (including allowance for losses of $361 million) as of December 2019. The estimated fair value of such lending commitments was a liability of $5.89 billion as of March 2020 and $3.05 billion as of December 2019. Had these lending commitments been carried at fair value and included in the fair value hierarchy, $3.29 billion as of March 2020 and $1.78 billion as of December 2019 would have been classified in level 2, and $2.60 billion as of March 2020 and $1.27 billion as of December 2019 would have been classified in level 3.
 
 
•
Held for sale lending commitments are accounted for at the lower of cost or fair value. The carrying value of lending commitments held for sale was a liability of $196 million as of March 2020 and $60 million as of December 2019. The estimated fair value of such lending commitments approximates the carrying value. Had these lending commitments been included in the fair value hierarchy, they would have been primarily classified in level 2 as of both March 2020 and December 2019.
 
 
•
Gains or losses related to lending commitments at fair value, if any, are generally recorded net of any fees in other principal transactions.
 
   
Goldman Sachs March 2020 Form 10-Q
 
64
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Commercial Lending.
The firm’s commercial lending commitments were primarily extended to investment-grade corporate borrowers. Such commitments primarily included $88.61 billion as of March 2020 and $102.50 billion as of December 2019, related to relationship lending activities (principally used for operating and general corporate purposes) and $26.69 billion as of March 2020 and $33.47 billion as of December 2019, related to other investment banking activities (generally extended for contingent acquisition financing and are often intended to be short-term in nature, as borrowers often seek to replace them with other funding sources). The firm also extends lending commitments in connection with other types of corporate lending, as well as commercial real estate financing. See Note 9 for further information about funded loans.
Sumitomo Mitsui Financial Group, Inc. (SMFG) provides the firm with credit loss protection on certain approved loan commitments (primarily investment-grade commercial lending commitments). The notional amount of such loan commitments was $4.05 billion as of March 2020 and $5.74 billion as of December 2019. The credit loss protection on loan commitments provided by SMFG is generally limited to 95% of the first loss the firm realizes on such commitments, up to a maximum of approximately $950 million. In addition, subject to the satisfaction of certain conditions, upon the firm’s request, SMFG will provide protection for 70% of additional losses on such commitments, up to a maximum of $750 million, of which no protection had been provided as of March 2020 and December 2019. The firm also uses other financial instruments to mitigate credit risks related to certain commitments not covered by SMFG. These instruments primarily include credit default swaps that reference the same or similar underlying instrument or entity, or credit default swaps that reference a credit index.
Warehouse Financing.
The firm provides financing to clients who warehouse financial assets. These arrangements are secured by the warehoused assets, primarily consisting of residential real estate, consumer and corporate loans.
Credit Cards.
The firm’s credit card lending commitments represents credit card lines issued by the firm to consumers. These credit card lines are cancelable by the firm.
Collateralized Agreement Commitments/ Collateralized Financing Commitments
Collateralized agreement commitments includes forward starting resale and securities borrowing agreements, and collateralized financing commitments includes forward starting repurchase and secured lending agreements that settle at a future date, generally within three business days. Collateralized agreement commitments also includes transactions where the firm has entered into commitments to provide contingent financing to its clients and counterparties through resale agreements. The firm’s funding of these commitments depends on the satisfaction of all contractual conditions to the resale agreement and these commitments can expire unused.
Letters of Credit
The firm has commitments under letters of credit issued by various banks which the firm provides to counterparties in lieu of securities or cash to satisfy various collateral and margin deposit requirements.
Investment Commitments
Investment commitments includes commitments to invest in private equity, real estate and other assets directly and through funds that the firm raises and manages. Investment commitments included $2.00 billion as of March 2020 and $2.06 billion as of December 2019, related to commitments to invest in funds managed by the firm. If these commitments are called, they would be funded at market value on the date of investment.
Contingencies
Legal Proceedings.
See Note 27 for information about legal proceedings, including certain mortgage-related matters.
Certain Mortgage-Related Contingencies.
During the period 2005 through 2008 in connection with both sales and securitizations of loans, the firm provided loan-level representations and/or assigned the loan-level representations from the party from whom the firm purchased the loans.
Based on the large number of defaults in residential mortgages, including those sold or securitized by the firm, there is a potential for repurchase claims. However, the firm is not in a position to make a meaningful estimate of that exposure at this time. The firm’s exposure to claims for repurchase of residential mortgage loans based on alleged breaches of representations will depend on a number of factors, such as the extent to which these claims are made within the statute of limitations, taking into consideration the agreements to toll the statute of limitations the firm entered into with trustees representing certain trusts.
   
65
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Other Contingencies.
In connection with the sale of Metro International Trade Services (Metro), the firm agreed to provide indemnities to the buyer, which primarily relate to fundamental representations and warranties, and potential liabilities for legal or regulatory proceedings arising out of the conduct of Metro’s business while the firm owned it.
In connection with the settlement agreement with the Residential Mortgage-Backed Securities Working Group of the U.S. Financial Fraud Enforcement Task Force, the firm agreed to provide $1.80 billion in consumer relief by January 2021. As of March 2020, approximately $1.55 billion of such relief was provided. This relief was provided in the form of principal forgiveness for underwater homeowners and distressed borrowers; financing for construction, rehabilitation and preservation of affordable housing; and support for debt restructuring, foreclosure prevention and housing quality improvement programs, as well as land banks.
Guarantees
The table below presents derivatives that meet the definition of a guarantee, securities lending indemnifications and certain other financial guarantees.
 
             
             
$ in millions
  
Derivatives
   
Securities lending indemnifications
   
Other financial guarantees
 
As of March 2020
 
 
 
  
   
 
Carrying Value of Net Liability
 
 
$    7,973
 
 
 
$
 
 
      
  
–
 
 
 
$    
 
58
 
Maximum Payout/Notional Amount by Period of Expiration
 
Remainder of 2020
 
 
$  65,570
 
 
 
$16,978
 
 
 
$1,648
 
2021 - 2022
 
 
72,282
 
 
 
–
 
 
 
1,930
 
2023 - 2024
 
 
22,395
 
 
 
–
 
 
 
2,853
 
2025 - thereafter
 
 
35,303
 
 
 
–
 
 
 
192
 
Total
 
 
$195,550
 
 
 
$16,978
 
 
 
$6,623
 
 
As of December 2019
 
 
 
  
   
 
Carrying Value of Net Liability
  
$    3,817
   
$         
 
–
   
$     27
 
Maximum Payout/Notional Amount by Period of Expiration
 
2020
  
$  91,814
   
$17,891
   
$2,044
 
2021 - 2022
  
76,693
   
–
   
1,714
 
2023 - 2024
  
19,377
   
–
   
2,219
 
2025 - thereafter
  
36,317
   
–
   
149
 
Total
  
$224,201
   
$17,891
   
$6,126
 
 
 
 
 
 
 
 
In the table above:
 
•
The maximum payout is based on the notional amount of the contract and does not represent anticipated losses.
 
 
 
 
 
 
 
 
•
Amounts exclude certain commitments to issue standby letters of credit that are included in lending commitments. See the tables in “Commitments” above for a summary of the firm’s commitments.
 
 
 
 
 
 
 
 
•
The carrying value for derivatives included derivative assets of $1.67 billion as of March 2020 and $1.56 billion as of December 2019, and derivative liabilities of $9.64 billion as of March 2020 and $5.38 billion as of December 2019.
 
 
 
 
 
 
 
Derivative Guarantees.
The firm enters into various derivatives that meet the definition of a guarantee under U.S. GAAP, including written equity and commodity put options, written currency contracts and interest rate caps, floors and swaptions. These derivatives are risk managed together with derivatives that do not meet the definition of a guarantee, and therefore the amounts in the table above do not reflect the firm’s overall risk related to derivative activities. Disclosures about derivatives are not required if they may be cash settled and the firm has no basis to conclude it is probable that the counterparties held the underlying instruments at inception of the contract. The firm has concluded that these conditions have been met for certain large, internationally active commercial and investment bank counterparties, central clearing counterparties, hedge funds and certain other counterparties. Accordingly, the firm has not included such contracts in the table above. See Note 7 for information about credit derivatives that meet the definition of a guarantee, which are not included in the table above.
Derivatives are accounted for at fair value and therefore the carrying value is considered the best indication of payment/performance risk for individual contracts. However, the carrying values in the table above exclude the effect of counterparty and cash collateral netting.
Securities Lending Indemnifications.
The firm, in its capacity as an agency lender, indemnifies most of its securities lending customers against losses incurred in the event that borrowers do not return securities and the collateral held is insufficient to cover the market value of the securities borrowed. Collateral held by the lenders in connection with securities lending indemnifications was $17.56 billion as of March 2020 and $19.14 billion as of December 2019. Because the contractual nature of these arrangements requires the firm to obtain collateral with a market value that exceeds the value of the securities lent to the borrower, there is minimal performance risk associated with these guarantees.
   
Goldman Sachs March 2020 Form 10-Q
 
66
 
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Other Financial Guarantees.
In the ordinary course of business, the firm provides other financial guarantees of the obligations of third parties (e.g., standby letters of credit and other guarantees to enable clients to complete transactions and fund-related guarantees). These guarantees represent obligations to make payments to beneficiaries if the guaranteed party fails to fulfill its obligation under a contractual arrangement with that beneficiary.
Guarantees of Securities Issued by Trusts.
The firm has established trusts, including Goldman Sachs Capital I, the APEX Trusts and other entities
,
for the limited purpose of issuing securities to third parties, lending the proceeds to the firm and entering into contractual arrangements with the firm and third parties related to this purpose. The firm does not consolidate these entities. See Note 14 for further information about the transactions involving Goldman Sachs Capital I and the APEX Trusts.
The firm effectively provides for the full and unconditional guarantee of the securities issued by these entities. Timely payment by the firm of amounts due to these entities under the guarantee, borrowing, preferred stock and related contractual arrangements will be sufficient to cover payments due on the securities issued by these entities.
Management believes that it is unlikely that any circumstances will occur, such as nonperformance on the part of paying agents or other service providers, that would make it necessary for the firm to make payments related to these entities other than those required under the terms of the guarantee, borrowing, preferred stock and related contractual arrangements and in connection with certain expenses incurred by these entities.
Indemnities and Guarantees of Service Providers.
In the ordinary course of business, the firm indemnifies and guarantees certain service providers, such as clearing and custody agents, trustees and administrators, against specified potential losses in connection with their acting as an agent of, or providing services to, the firm or its affiliates.
The firm may also be liable to some clients or other parties for losses arising from its custodial role or caused by acts or omissions of third-party service providers, including
sub-custodians
and third-party brokers. In certain cases, the firm has the right to seek indemnification from these third-party service providers for certain relevant losses incurred by the firm. In addition, the firm is a member of payment, clearing and settlement networks, as well as securities exchanges around the world that may require the firm to meet the obligations of such networks and exchanges in the event of member defaults and other loss scenarios.
In connection with the firm’s prime brokerage and clearing businesses, the firm agrees to clear and settle on behalf of its clients the transactions entered into by them with other brokerage firms. The firm’s obligations in respect of such transactions are secured by the assets in the client’s account, as well as any proceeds received from the transactions cleared and settled by the firm on behalf of the client. In connection with joint venture investments, the firm may issue loan guarantees under which it may be liable in the event of fraud, misappropriation, environmental liabilities and certain other matters involving the borrower.
The firm is unable to develop an estimate of the maximum payout under these guarantees and indemnifications. However, management believes that it is unlikely the firm will have to make any material payments under these arrangements, and no material liabilities related to these guarantees and indemnifications have been recognized in the consolidated balance sheets as of both March 2020 and December 2019.
Other Representations, Warranties and Indemnifications.
The firm provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties. The firm may also provide indemnifications protecting against changes in or adverse application of certain U.S. tax laws in connection with ordinary-course transactions, such as securities issuances, borrowings or derivatives.
In addition, the firm may provide indemnifications to some counterparties to protect them in the event additional taxes are owed or payments are withheld, due either to a change in or an adverse application of certain
non-U.S.
tax laws.
These indemnifications generally are standard contractual terms and are entered into in the ordinary course of business. Generally, there are no stated or notional amounts included in these indemnifications, and the contingencies triggering the obligation to indemnify are not expected to occur. The firm is unable to develop an estimate of the maximum payout under these guarantees and indemnifications. However, management believes that it is unlikely the firm will have to make any material payments under these arrangements, and no material liabilities related to these arrangements have been recognized in the consolidated balance sheets as of both March 2020 and December 2019.
   
67
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Guarantees of Subsidiaries.
Group Inc. fully and unconditionally guarantees the securities issued by GS Finance Corp., a wholly-owned finance subsidiary of the firm. Group Inc. has guaranteed the payment obligations of Goldman Sachs & Co. LLC (GS&Co.) and GS Bank USA, subject to certain exceptions. In addition, Group Inc. has provided a guarantee to GS Bank USA related to assets that GS Bank USA has acquired from certain subsidiaries and affiliated funds of Group Inc., and Group Inc. has provided a guarantee to Goldman Sachs International (GSI) related to agreements that GSI has entered into with certain of its counterparties.
Group Inc. guarantees many of the obligations of its other consolidated subsidiaries on a
transaction-by-transaction
basis, as negotiated with counterparties. Group Inc. is unable to develop an estimate of the maximum payout under its subsidiary guarantees; however, because these obligations are also obligations of consolidated subsidiaries, Group Inc.’s liabilities as guarantor are not separately disclosed.
Note 19.
Shareholders’ Equity
Common Equity
As of both March 2020 and December 2019, the firm had 4.00 billion authorized shares of common stock and 200 million authorized shares of nonvoting common stock, each with a par value of $0.01 per share.
The firm’s share repurchase program is intended to help maintain the appropriate level of common equity. The share repurchase program is effected primarily through regular open-market purchases (which may include repurchase plans designed to comply with Rule
 10b5-1
and accelerated share repurchases), the amounts and timing of which are determined primarily by the firm’s current and projected capital position, and capital deployment opportunities, but which may also be influenced by general market conditions and the prevailing price and trading volumes of the firm’s common stock. Prior to repurchasing common stock, the firm must receive confirmation that the FRB does not object to such capital action.
The table below presents information about common stock repurchases.
 
         
    
 
Three Months
Ended March
 
         
in millions, except per share amounts
 
 
2020
 
  
2019
 
Common share repurchases
 
 
8.2
 
  
6.3
 
Average cost per share
 
 
$236.35
 
  
$197.08
 
Total cost of common share repurchases
 
 
$  1,928
 
  
$  1,250
 
 
 
 
 
 
 
 
 
 
Pursuant to the terms of certain share-based compensation plans, employees may remit shares to the firm or the firm may cancel share-based awards to satisfy statutory employee tax withholding requirements. Under these plans, during the three months ended March 2020, 3,476 shares were remitted with a total value of $0.9 million and the firm cancelled 3.3 million share-based awards with a total value of $803 million.
The table below presents common stock dividends declared.
 
         
    
 
Three Months
Ended March
 
         
 
 
2020
 
  
2019
 
Dividends declared per common share
 
 
$1.25
 
  
$0.80
 
 
 
 
 
 
 
 
 
 
On April 14, 2020
, the Board of Directors of Group Inc. declared a dividend of
$1.25
per common share to be paid on
June 29, 2020
to common shareholders of record on
June 1, 2020.
Preferred Equity
The tables below present information about the perpetual preferred stock issued and outstanding as of
March
 
2020
.
 
                 
                 
Series
 
 
Shares Authorized
 
 
 
Shares Issued
 
 
 
Shares Outstanding
 
 
 
Depositary Shares Per Share
 
A
  
50,000
   
30,000
   
29,999
   
1,000
 
C
  
25,000
   
8,000
   
8,000
   
1,000
 
D
  
60,000
   
54,000
   
53,999
   
1,000
 
E
  
17,500
   
7,667
   
7,667
   
N/A
 
F
  
5,000
   
1,615
   
1,615
   
N/A
 
J
  
46,000
   
40,000
   
40,000
   
1,000
 
K
  
32,200
   
28,000
   
28,000
   
1,000
 
M
  
80,000
   
80,000
   
80,000
   
25
 
N
  
31,050
   
27,000
   
27,000
   
1,000
 
O
  
26,000
   
26,000
   
26,000
   
25
 
P
  
66,000
   
60,000
   
60,000
   
25
 
Q
  
20,000
   
20,000
   
20,000
   
25
 
R
  
24,000
   
24,000
   
24,000
   
25
 
S
  
14,000
   
14,000
   
14,000
   
25
 
Total
 
 
496,750
 
 
 
420,282
 
 
 
420,280
 
  
 
            
Series
 
Earliest Redemption Date
  
 
Liquidation Preference
 
  
Redemption
Value
($ in millions)
 
A
 
Currently redeemable
   
$  25,000
  
 
$     750
 
C
 
Currently redeemable
   
$  25,000
  
 
200
 
D
 
Currently redeemable
   
$  25,000
  
 
1,350
 
E
 
Currently redeemable
   
$100,000
  
 
767
 
F
 
Currently redeemable
   
$100,000
  
 
161
 
J
 
May 10, 2023
   
$  25,000
  
 
1,000
 
K
 
May 10, 2024
   
$  25,000
  
 
700
 
M
 
May 10, 2020
   
$  25,000
  
 
2,000
 
N
 
May 10, 2021
   
$  25,000
  
 
675
 
O
 
November 10, 2026
   
$  25,000
  
 
650
 
P
 
November 10, 2022
   
$  25,000
  
 
1,500
 
Q
 
August 10, 2024
   
$  25,000
  
 
500
 
R
 
February 10, 2025
   
$  25,000
  
 
600
 
S
 
February 10, 2025
   
$  25,000
  
 
350
 
Total
 
   
  
 
$11,203
 
 
 
 
 
 
 
 
 
 
   
Goldman Sachs March 2020 Form 10-Q
 
68
 
 
 
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
In the tables above:
 
•
All shares have a par value of $0.01 per share and, where applicable, each share is represented by the specified number of depositary shares.
 
•
The earliest redemption date represents the date on which each share of
non-cumulative
Preferred Stock is redeemable at the firm’s option.
 
•
Prior to redeeming preferred stock, the firm must receive confirmation that the FRB does not object to such action.
 
•
In January 2020, the firm issued 14,000 shares of Series S 4.40% Fixed-Rate Reset
Non-Cumulative
Preferred Stock (Series S Preferred Stock).
 
•
The redemption price per share for Series A through F and Series Q through S Preferred Stock is the liquidation preference plus declared and unpaid dividends. The redemption price per share for Series J through P Preferred Stock is the liquidation preference plus accrued and unpaid dividends. Each share of Series E and Series F Preferred Stock is redeemable at the firm’s option, subject to certain covenant restrictions governing the firm’s ability to redeem the preferred stock without issuing common stock or other instruments with equity-like characteristics. See Note 14 for information about the replacement capital covenants applicable to the Series E and Series F Preferred Stock.
 
•
All series of preferred stock are pari passu and have a preference over the firm’s common stock on liquidation.
 
•
The firm’s ability to declare or pay dividends on, or purchase, redeem or otherwise acquire, its common stock is subject to certain restrictions in the event that the firm fails to pay or set aside full dividends on the preferred stock for the latest completed dividend period.
In the first quarter of 2020, the firm redeemed the remaining 14,000 outstanding shares of its Series L 5.70%
Non-Cumulative
Preferred Stock (Series L Preferred Stock) with a redemption value of $350 million ($25,000 per share), plus accrued and unpaid dividends. The difference between the redemption value and net carrying value at the time of this redemption was $1 million, which was recorded as an addition to preferred stock dividends in 2020.
In 2019, the firm redeemed 38,000 shares of its outstanding Series L Preferred Stock with a redemption value of $950 million ($25,000 per share), plus accrued and unpaid dividends. In addition, in 2019, the firm redeemed the remaining 6,000 outstanding shares of its Series B 6.20%
Non-Cumulative
Preferred Stock (Series B Preferred Stock) with a redemption value of $150 million ($25,000 per share). The difference between the redemption value and net carrying value at the time of these redemptions was $9 million, which was recorded as an addition to preferred stock dividends in 2019.
The table below presents the dividend rates of perpetual preferred stock as of
March 2020
.
 
   
Series
 
Per Annum Dividend Rate
A
 
3 month LIBOR + 0.75%, with floor of 3.75%, payable quarterly
C
 
3 month LIBOR + 0.75%, with floor of 4.00%, payable quarterly
D
 
3 month LIBOR + 0.67%, with floor of 4.00%, payable quarterly
E
 
3 month LIBOR + 0.7675%, with floor of 4.00%, payable quarterly
F
 
3 month LIBOR + 0.77%, with floor of 4.00%, payable quarterly
J
 
5.50% to, but excluding, May 10, 2023;
3 month LIBOR + 3.64% thereafter, payable quarterly
K
 
6.375% to, but excluding, May 10, 2024;
3 month LIBOR + 3.55% thereafter, payable quarterly
M
 
5.375%, payable semi-annually, from issuance date to, but excluding,
May 10, 2020; 3 month LIBOR + 3.922%, payable quarterly, thereafter
N
 
6.30%, payable quarterly
O
 
5.30%, payable semi-annually, from issuance date to, but excluding,
November 10, 2026; 3 month LIBOR + 3.834%, payable quarterly, thereafter
P
 
5.00%, payable semi-annually, from issuance date to, but excluding,
November 10, 2022; 3 month LIBOR + 2.874%, payable quarterly, thereafter
Q
 
5.50%, payable semi-annually, from issuance date to, but excluding,
August 10, 2024; 5 year treasury rate + 3.623%, payable semi-annually, thereafter
R
 
4.95%, payable semi-annually, from issuance date to, but excluding,
February 10, 2025; 5 year treasury rate + 3.224%, payable semi-annually, thereafter
S
 
4.40%, payable semi-annually, from issuance date to, but excluding,
February 10, 2025; 5 year treasury rate + 2.85%, payable semi-annually thereafter
In the table above, dividends on each series of preferred stock are payable in arrears for the periods specified.
The table below presents preferred stock dividends declared.
 
         
 
2020
  
  
 
2019
 
                   
Series
 
 
per share
 
 
 
$ in millions
 
 
  
per share
   
$ in millions
 
Three Months Ended March
 
  
   
 
A
 
 
$
 
  234.38
 
 
 
$  7
 
 
  
$234.38
   
$  7
 
B
 
 
$ 
 
          –
 
 
 
–
 
 
  
$387.50
   
2
 
C
 
 
$
 
  250.00
 
 
 
2
 
 
  
$250.00
   
2
 
D
 
 
$ 
 
 250.00
 
 
 
13
 
 
  
$250.00
   
13
 
E
 
 
$1,011.11
 
 
 
7
 
 
  
$977.78
   
7
 
F
 
 
$1,011.11
 
 
 
2
 
 
  
$977.78
   
2
 
J
 
 
$
 
  343.75
 
 
 
14
 
 
  
$343.75
   
14
 
K
 
 
$
 
  398.44
 
 
 
11
 
 
  
$398.44
   
11
 
L
 
 
$ 
 
 361.54
 
 
 
4
 
 
  
$        
  
–
   
–
 
N
 
 
$
 
  393.75
 
 
 
11
 
 
  
$393.75
   
11
 
Q
 
 
$
 
  889.93
 
 
 
18
 
 
  
$        
  
–
   
–
 
Total
 
 
 
 
 
$89
 
 
  
   
$69
 
69
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
On April 6, 2020, Group Inc. declared dividends of $236.98 per share of Series A Preferred Stock, $252.78 per share of Series C Preferred Stock, $252.78 per share of Series D Preferred Stock, $343.75 per share of Series J Preferred Stock, $398.44 per share of Series K Preferred Stock, $671.88 per share of Series M Preferred Stock, $393.75 per share of Series N Preferred Stock, $662.50 per share of Series O Preferred Stock and $625.00 per share of Series P Preferred Stock to be paid on May 11, 2020 to preferred shareholders of record on April 26, 2020. In addition, the firm declared dividends of $1,011.11 per share of Series E Preferred Stock and Series F Preferred Stock to be paid on June 1, 2020 to preferred shareholders of record on May 16, 2020.
Accumulated Other Comprehensive Income/(Loss)
The table below presents changes in the accumulated other comprehensive income/(loss), net of tax, by type.
 
             
$ in millions
 
 
Beginning
balance
 
  
Other
comprehensive
income/(loss)
adjustments,
net of tax
   
Ending
balance
 
Three Months Ended March 2020
 
 
 
  
   
 
Currency translation
 
 
$   (616
)
 
 
$    
 
(17
)
 
 
$
  
(633
)
Debt valuation adjustment
 
 
(572
)
 
 
2,914
 
 
 
2,342
 
Pension and postretirement liabilities
 
 
(342
)
 
 
7
 
 
 
(335
)
Available-for-sale
securities
 
 
46
 
 
 
517
 
 
 
563
 
Total
 
 
$(1,484
)
 
 
$
 
3,421
 
 
 
$1,937
 
 
Three Months Ended March 2019
 
 
 
  
   
 
Currency translation
  
$
 
   (621
)  
$        4
   
$  (617
)
Debt valuation adjustment
  
1,507
   
(1,417
)  
90
 
Pension and postretirement liabilities
  
(81
)  
(7
)  
(88
)
Available-for-sale
securities
  
(112
)  
114
   
2
 
Total
  
$
 
    693
   
$(1,306
)  
$  (613
)
Note 20.
Regulation and Capital Adequacy
The FRB is the primary regulator of Group Inc., a bank holding company (BHC) under the U.S. Bank Holding Company Act of 1956 and a financial holding company under amendments to this Act. The firm is subject to consolidated regulatory capital requirements which are calculated in accordance with the regulations of the FRB (Capital Framework).
The capital requirements are expressed as risk-based capital and leverage ratios that compare measures of regulatory capital to risk-weighted assets (RWAs), average assets and
off-balance
sheet exposures. Failure to comply with these capital requirements could result in restrictions being imposed by the firm’s regulators and could limit the firm’s ability to repurchase shares, pay dividends and make certain discretionary compensation payments. The firm’s capital levels are also subject to qualitative judgments by the regulators about components of capital, risk weightings and other factors. Furthermore, certain of the firm’s subsidiaries are subject to separate regulations and capital requirements.
Capital Framework
The regulations under the Capital Framework are largely based on the Basel Committee on Banking Supervision’s (Basel Committee) capital framework for strengthening international capital standards (Basel III) and also implement certain provisions of the Dodd-Frank Act. Under the Capital Framework, the firm is an “Advanced approach” banking organization and has been designated as a global systemically important bank
(G-SIB).
The capital requirements calculated in accordance with the Capital Framework include the minimum risk-based capital and leverage ratios. In addition, the risk-based capital requirements include the capital conservation buffer, countercyclical capital buffer and the
G-SIB
surcharge, all of which must consist entirely of capital that qualifies as Common Equity Tier 1 (CET1) capital.
The firm calculates its CET1 capital, Tier 1 capital and Total capital ratios in accordance with (i) the Standardized approach and market risk rules set out in the Capital Framework (together, the Standardized Capital Rules) and (ii) the Advanced approach and market risk rules set out in the Capital Framework (together, the Advanced Capital Rules). The lower of each risk-based capital ratio calculated in (i) and (ii) is the ratio against which the firm’s compliance with its risk-based capital requirements is assessed. Under the Capital Framework, the firm is also subject to leverage requirements which consist of a minimum Tier 1 leverage ratio and a minimum supplementary leverage ratio (SLR), as well as the SLR buffer.
Consolidated Regulatory Risk-Based Capital and Leverage Ratios
The table below presents the risk-based capital and leverage requirements.
 
     
 
 
Requirements
 
Risk-based capital requirements
 
 
 
CET1 capital ratio
 
 
9.5%
 
Tier 1 capital ratio
 
 
11.0%
 
Total capital ratio
 
 
13.0%
 
 
Leverage requirements
 
 
 
Tier 1 leverage ratio
 
 
4.0%
 
SLR
 
 
5.0%
 
In the table above:
 
•
The CET1 capital ratio requirement includes a minimum of 4.5%, the Tier 1 capital ratio requirement includes a minimum of 6.0% and the Total capital ratio requirement includes a minimum of 8.0%. The requirements also include the capital conservation buffer of 2.5%, the
G-SIB
surcharge of 2.5% (Method 2) and the countercyclical capital buffer, which the FRB has set to zero percent.
Goldman Sachs March 2020 Form 10-Q
 
70
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
•
The
G-SIB
surcharge is updated annually based on financial data from the prior year and is generally applicable for the following year. The
G-SIB
surcharge is calculated using two methodologies, the higher of which is reflected in the firm’s risk-based capital requirements. The first calculation (Method 1) is based on the Basel Committee’s methodology which, among other factors, relies upon measures of the size, activity and complexity of each
G-SIB.
The second calculation (Method 2) uses similar inputs but includes a measure of reliance on short-term wholesale funding.
 
•
The Tier 1 leverage ratio requirement is a minimum of 4%. The SLR requirement of 5% includes a minimum of 3% and a 2% buffer applicable to
G-SIBs.
The table below presents information about risk-based capital ratios.
 









         
$ in millions
  
Standardized
   
Advanced
 
As of March 2020
 
 

 
  

 
CET1 capital
 
 
$  74,550
 
 
 
$  74,550
 
Tier 1 capital
 
 
$  85,589
 
 
 
$  85,589
 
Tier 2 capital
 
 
$  15,131
 
 
 
$  13,470
 
Total capital
 
 
$100,720
 
 
 
$  99,059
 
RWAs
 
 
$594,484
 
 
 
$605,926
 
 
CET1 capital ratio
 
 
12.5%
 
 
 
12.3%
 
Tier 1 capital ratio
 
 
14.4%
 
 
 
14.1%
 
Total capital ratio
 
 
16.9%
 
 
 
16.3%
 
 
As of December 2019
 
 

 
  

 
CET1 capital
  
$  74,850
   
$  74,850
 
Tier 1 capital
  
$  85,440
   
$  85,440
 
Tier 2 capital
  
$  14,925
   
$  13,473
 
Total capital
  
$100,365
   
$  98,913
 
RWAs
  
$563,575
   
$544,653
 
 
CET1 capital ratio
  
13.3%
   
13.7%
 
Tier 1 capital ratio
  
15.2%
   
15.7%
 
Total capital ratio
  
17.8%
   
18.2%
 
In the table above:
 
•
The lower of the Standardized or Advanced ratio is the ratio against which the firm’s compliance with the capital requirements is assessed under the risk-based Capital Rules, and therefore, the Advanced ratios applied to the firm as of March 2020 and the Standardized ratios applied to the firm as of December 2019.
•
As permitted by the FRB, the firm has elected to temporarily delay the estimated effects of adopting CECL on regulatory capital until January 2022 and to subsequently phase-in the effects through January 2025. In addition, during 2020 and 2021, the firm has elected to increase regulatory capital by 25% of the increase in the allowance for credit losses since January 1, 2020, as permitted by the rules issued by the FRB. The impact of this increase will also be phased in over the three-year transition period. Reflecting the full impact of CECL as of March 2020 would not have had a material impact on the firm’s Advanced risk-based capital ratios.
 
•
The FRB
permits banking organizations to exclude assets acquired in connection with their participation in the Federal Reserve’s Money Market Mutual Fund Liquidity Facility (MMLF) from their calculation of risk-based capital and leverage ratios. The firm has opted to exclude such assets from the calculations of these ratios as of March 2020.
The table below presents information about leverage ratios.
 









    

 
For the Three Months
Ended or as of
 
         
$ in millions
 
 
March
2020
 
  
December 2019
 
Tier 1 capital
 
 
$     85,589
 
  
$     85,440
 
 
Average total assets
 
 
$1,048,847
 
  
$   
983,909
 
Deductions from Tier 1 capital
 
 
(4,887
)
  
(5,275
)
Average adjusted total assets
 
 
1,043,960
 
  
978,634
 
Average
off-balance
sheet exposures
 
 
394,906
 
  
396,833
 
Total leverage exposure
 
 
$1,438,866
 
  
$1,375,467
 
 
Tier 1 leverage ratio
 
 
8.2%
 
  
8.7%
 
SLR
 
 
5.9%
 
  
6.2%
 
In the table above:
 
•
Average total assets represents the average daily assets for the quarter adjusted for the impact of CECL transition and exclusion of assets acquired in connection with the firm’s participation in the
Federal Reserve’s
MMLF.
 
•
Average
off-balance
sheet exposures represents the monthly average and consists of derivatives, securities financing transactions, commitments and guarantees.
 
•
Tier 1 leverage ratio is calculated as Tier 1 capital divided by average adjusted total assets.
 
•
SLR is calculated as Tier 1 capital divided by total leverage exposure.



71
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Risk-Based Capital.
The table below presents information about risk-based capital.
 









    

 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Common shareholders’ equity
 
 
$  81,176
 
  
$  79,062
 
Impact of CECL transition
 
 
819
 
  
–
 
Deduction for goodwill
 
 
(3,528
)
  
(3,529
)
Deduction for identifiable intangible assets
 
 
(584
)
  
(604
)
Other adjustments
 
 
(3,333
)
  
(79
)
CET1 capital
 
 
74,550
 
  
74,850
 
Preferred stock
 
 
11,203
 
  
11,203
 
Deduction for investments in covered funds
 
 
(157
)
  
(610
)
Other adjustments
 
 
(7
)
  
(3
)
Tier 1 capital
 
 
$  85,589
 
  
$  85,440
 
Standardized Tier 2 and Total capital
 
 

 
  

 
Tier 1 capital
 
 
$  85,589
 
  
$  85,440
 
Qualifying subordinated debt
 
 
12,820
 
  
12,847
 
Junior subordinated debt
 
 
188
 
  
284
 
Allowance for credit losses
 
 
2,174
 
  
1,802
 
Other adjustments
 
 
(51
)
  
(8
)
Standardized Tier 2 capital
 
 
15,131
 
  
14,925
 
Standardized Total capital
 
 
$100,720
 
  
$100,365
 
Advanced Tier 2 and Total capital
 
 

 
  

 
Tier 1 capital
 
 
$  85,589
 
  
$  85,440
 
Standardized Tier 2 capital
 
 
15,131
 
  
14,925
 
Allowance for credit losses
 
 
(2,174
)
  
(1,802
)
Other adjustments
 
 
513
 
  
350
 
Advanced Tier 2 capital
 
 
13,470
 
  
13,473
 
Advanced Total capital
 
 
$  99,059
 
  
$  98,913
 
In the table above:
 
•
Impact of CECL transition represents the impact of adoption as of January 1, 2020 and the impact of increasing regulatory capital by 25% of the increase in allowance for credit losses since January 1, 2020. The allowance for credit losses within Standardized and Advanced Tier 2 capital also reflects the impact of these adjustments.
 
•
Deduction for goodwill was net of deferred tax liabilities of $668 million as of March 2020 and $667 million as of December 2019.
 
•
Deduction for identifiable intangible assets was net of deferred tax liabilities of $30 million as of March 2020 and $37 million as of December 2019.
 
•
Deduction for investments in covered funds represents the firm’s aggregate investments in applicable covered funds, excluding investments that are subject to an extended conformance period. See Note 8 for further information about the Volcker Rule. 
•
Other adjustments within CET1 capital and Tier 1 capital primarily include credit valuation adjustments on derivative liabilities, the overfunded portion of the firm’s defined benefit pension plan obligation net of associated deferred tax liabilities, disallowed deferred tax assets, debt valuation adjustments and other required credit risk-based deductions. Other adjustments within Advanced Tier 2 capital include eligible credit reserves.
 
•
Qualifying subordinated debt is subordinated debt issued by Group Inc. with an original maturity of five years or greater. The outstanding amount of subordinated debt qualifying for Tier 2 capital is reduced upon reaching a remaining maturity of five years. See Note 14 for further information about the firm’s subordinated debt.
 
•
Junior subordinated debt is debt issued to a Trust. As of March 2020, 20% of this debt was included in Tier 2 capital and 80% was phased out of regulatory capital. As of December 2019, 30% of this debt was included in Tier 2 capital and 70% was phased out of regulatory capital. Junior subordinated debt is reduced by the amount of Trust Preferred securities purchased by the firm and will be fully phased out of Tier 2 capital by 2022 at a rate of 10% per year. See Note 14 for further information about the firm’s junior subordinated debt and Trust Preferred securities.



Goldman Sachs March 2020 Form 10-Q
 
72
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents changes in CET1 capital, Tier 1 capital and Tier 2 capital.
 
         
         
$ in millions
  
Standardized
   
Advanced
 
Three Months Ended March 2020
 
 
 
  
 
CET1 capital
 
 
 
  
 
Beginning balance
 
 
$  74,850
 
 
 
$74,850
 
Change in:
 
 
 
 
 
 
Common shareholders’ equity
 
 
2,114
 
 
 
2,114
 
Impact of CECL transition
 
 
819
 
 
 
819
 
Deduction for goodwill
 
 
1
 
 
 
1
 
Deduction for identifiable intangible assets
 
 
20
 
 
 
20
 
Other adjustments
 
 
(3,254
)
 
 
(3,254
)
Ending balance
 
 
$  74,550
 
 
 
$74,550
 
Tier 1 capital
 
 
 
 
 
 
Beginning balance
 
 
$  85,440
 
 
 
$85,440
 
Change in:
 
 
 
  
 
CET1 capital
 
 
(300
)
 
 
(300
)
Deduction for investments in covered funds
 
 
453
 
 
 
453
 
Other adjustments
 
 
(4
)
 
 
(4
)
Ending balance
 
 
85,589
 
 
 
85,589
 
Tier 2 capital
 
 
 
 
 
 
Beginning balance
 
 
14,925
 
 
 
13,473
 
Change in:
 
 
 
 
 
 
Qualifying subordinated debt
 
 
(27
)
 
 
(27
)
Junior subordinated debt
 
 
(96
)
 
 
(96
)
Allowance for credit losses
 
 
372
 
 
 
–
 
Other adjustments
 
 
(43
)
 
 
120
 
Ending balance
 
 
15,131
 
 
 
13,470
 
Total capital
 
 
$100,720
 
 
 
$99,059
 
 
Year Ended December 2019
  
   
 
CET1 capital
  
   
 
Beginning balance
  
$  73,116
   
$73,116
 
Change in:
  
   
 
Common shareholders’ equity
  
80
   
80
 
Deduction for goodwill
  
(432
)  
(432
)
Deduction for identifiable intangible assets
  
(307
)  
(307
)
Other adjustments
  
2,393
   
2,393
 
Ending balance
  
$  74,850
   
$74,850
 
Tier 1 capital
  
   
 
Beginning balance
  
$  83,702
   
$83,702
 
Change in:
 
 
 
  
 
CET1 capital
  
1,734
   
1,734
 
Deduction for investments in covered funds
  
5
   
5
 
Other adjustments
  
(1
)  
(1
)
Ending balance
  
85,440
   
85,440
 
Tier 2 capital
  
   
 
Beginning balance
  
14,926
   
13,743
 
Change in:
  
   
 
Qualifying subordinated debt
  
(300
)  
(300
)
Junior subordinated debt
  
(158
)  
(158
)
Allowance for credit losses
  
449
   
–
 
Other adjustments
  
8
   
188
 
Ending balance
  
14,925
   
13,473
 
Total capital
  
$100,365
   
$98,913
 
 
 
 
 
 
 
 
 
RWAs.
RWAs are calculated in accordance with both the Standardized and Advanced Capital Rules.
Credit Risk
Credit RWAs are calculated based on measures of exposure, which are then risk weighted under the Standardized and Advanced Capital Rules:
 
•
The Standardized Capital Rules apply prescribed risk-weights, which depend largely on the type of counterparty. The exposure measure for derivatives and securities financing transactions are based on specific formulas which take certain factors into consideration.
 
 
 
 
 
 
 
 
•
Under the Advanced Capital Rules, the firm computes risk-weights for wholesale and retail credit exposures in accordance with the Advanced Internal Ratings-Based approach. The exposure measures for derivatives and securities financing transactions are computed utilizing internal models.
 
 
 
 
 
 
 
 
 
•
For both Standardized and Advanced credit RWAs, the risk-weights for securitizations and equities are based on specific required formulaic approaches.
 
 
 
 
 
 
 
 
   
73
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Market Risk
RWAs for market risk in accordance with the Standardized and Advanced Capital Rules are generally consistent. Market RWAs are calculated based on measures of exposure which include the following:
 
•
Value-at-Risk
(VaR) is the potential loss in value of trading assets and liabilities, as well as certain investments, loans, and other financial assets and liabilities accounted for at fair value, due to adverse market movements over a defined time horizon with a specified confidence level.
 
 
 
 
 
 
 
 
For both risk management purposes and regulatory capital calculations
,
the firm uses a single VaR model which captures risks including those related to interest rates, equity prices, currency rates and commodity prices. However, VaR used for regulatory capital requirements (regulatory VaR) differs from risk management VaR due to different time horizons and confidence levels
(10-day
and 99% for regulatory VaR vs.
one-day
and 95% for risk management VaR), as well as differences in the scope of positions on which VaR is calculated. In addition, the daily net revenues used to determine risk management VaR exceptions (i.e., comparing the daily net revenues to the VaR measure calculated as of the end of the prior business day) include intraday activity, whereas the Capital Framework requires that intraday activity be excluded from daily net revenues when calculating regulatory VaR exceptions. Intraday activity includes bid/offer net revenues, which are more likely than not to be positive by their nature. As a result, there may be differences in the number of VaR exceptions and the amount of daily net revenues calculated for regulatory VaR compared to the amounts calculated for risk management VaR.
The firm’s positional losses observed on a single day exceeded its 99%
one-day
regulatory VaR on six occasions during the three months ended March 2020 and exceeded its 99%
one-day
VaR on one occasion during the year ended December 2019. There was no change in the VaR multiplier used to calculate Market RWAs;
 
•
Stressed VaR is the potential loss in value of trading assets and liabilities, as well as certain investments, loans, and other financial assets and liabilities accounted for at fair value, during a period of significant market stress;
 
 
 
 
 
 
 
 
 
•
Incremental risk is the potential loss in value of
non-securitized
positions due to the default or credit migration of issuers of financial instruments over a
one-year
time horizon;
 
 
 
 
 
 
 
 
 
•
Comprehensive risk is the potential loss in value, due to price risk and defaults, within the firm’s credit correlation positions; and
 
 
 
 
 
 
 
 
 
 
•
Specific risk is the risk of loss on a position that could result from factors other than broad market movements, including event risk, default risk and idiosyncratic risk. The standardized measurement method is used to determine specific risk RWAs, by applying supervisory defined risk-weighting factors after applicable netting is performed.
 
 
 
 
 
 
 
Operational Risk
Operational RWAs are only required to be included under the Advanced Capital Rules. The firm utilizes an internal risk-based model to quantify Operational RWAs.
The table below presents information about RWAs.
 
         
         
$ in millions
  
Standardized
   
Advanced
 
As of March 2020
 
 
 
  
 
Credit RWAs
 
 
 
  
 
Derivatives
 
 
$134,778
 
 
 
$104,638
 
Commitments, guarantees and loans
 
 
189,300
 
 
 
148,986
 
Securities financing transactions
 
 
 
59,729
 
 
 
12,515
 
Equity investments
 
 
50,881
 
 
 
52,999
 
Other
 
 
74,574
 
 
 
82,753
 
Total Credit RWAs
 
 
509,262
 
 
 
401,891
 
Market RWAs
 
 
 
 
 
 
Regulatory VaR
 
 
13,465
 
 
 
13,465
 
Stressed VaR
 
 
45,608
 
 
 
45,608
 
Incremental risk
 
 
5,088
 
 
 
5,088
 
Comprehensive risk
 
 
2,186
 
 
 
2,186
 
Specific risk
 
 
18,875
 
 
 
18,875
 
Total Market RWAs
 
 
85,222
 
 
 
85,222
 
Total Operational RWAs
 
 
–
 
 
 
118,813
 
Total RWAs
 
 
$594,484
 
 
 
$605,926
 
 
As of December 2019
 
 
 
  
 
Credit RWAs
 
 
 
  
 
Derivatives
  
$120,906
   
$  72,631
 
Commitments, guarantees and loans
  
179,740
   
134,456
 
Securities financing transactions
  
65,867
   
13,834
 
Equity investments
  
56,814
   
61,892
 
Other
  
75,660
   
78,266
 
Total Credit RWAs
  
498,987
   
361,079
 
Market RWAs
  
   
 
Regulatory VaR
  
8,933
   
8,933
 
Stressed VaR
  
30,911
   
30,911
 
Incremental risk
  
4,308
   
4,308
 
Comprehensive risk
  
1,393
   
1,191
 
Specific risk
  
19,043
   
19,043
 
Total Market RWAs
  
64,588
   
64,386
 
Total Operational RWAs
  
–
   
119,188
 
Total RWAs
  
$563,575
   
$544,653
 
 
 
 
 
 
 
 
 
In the table above:
 
•
Securities financing transactions represents resale and repurchase agreements and securities borrowed and loaned transactions.
 
 
 
 
 
 
 
 
 
•
Other includes receivables, certain debt securities, cash and cash equivalents and other assets.
 
 
 
 
 
 
 
 
   
Goldman Sachs March 2020 Form 10-Q
 
74
 
 
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents changes in RWAs.
 
         
         
$ in millions
  
Standardized
   
Advanced
 
Three Months Ended March 2020
 
 
 
  
 
RWAs
 
 
 
 
 
 
Beginning balance
 
 
$563,575
 
 
 
$544,653
 
Credit RWAs
 
 
 
 
 
 
Change in:
 
 
 
  
 
Derivatives
 
 
13,872
 
 
 
32,007
 
Commitments, guarantees and loans
 
 
9,560
 
 
 
14,530
 
Securities financing transactions
 
 
(6,138
)
 
 
(1,319
)
Equity investments
 
 
(5,933
)
 
 
(8,893
)
Other
 
 
(1,086
)
 
 
 
4,487
 
Change in Credit RWAs
 
 
10,275
 
 
 
40,812
 
Market RWAs
 
 
 
  
 
Change in:
 
 
 
  
 
Regulatory VaR
 
 
4,532
 
 
 
4,532
 
Stressed VaR
 
 
14,697
 
 
 
14,697
 
Incremental risk
 
 
780
 
 
 
780
 
Comprehensive risk
 
 
793
 
 
 
995
 
Specific risk
 
 
(168
)
 
 
(168
)
Change in Market RWAs
 
 
20,634
 
 
 
20,836
 
Change in Operational RWAs
 
 
–
 
 
 
(375
)
Ending balance
 
 
$594,484
 
 
 
$605,926
 
 
Year Ended December 2019
 
 
 
  
 
RWAs
 
 
 
  
 
Beginning balance
  
$547,910
   
$558,111
 
Credit RWAs
 
 
 
  
 
Change in:
 
 
 
  
 
Derivatives
  
(1,605
)  
(9,670
)
Commitments, guarantees and loans
  
19,435
   
(8,900
)
Securities financing transactions
  
(496
)  
(4,425
)
Equity investments
  
3,251
   
6,738
 
Other
  
5,064
   
8,585
 
Change in Credit RWAs
  
25,649
   
(7,672
)
Market RWAs
 
 
 
  
 
Change in:
 
 
 
  
 
Regulatory VaR
  
1,151
   
1,151
 
Stressed VaR
  
2,959
   
2,959
 
Incremental risk
  
(6,161
)  
(6,161
)
Comprehensive risk
  
(1,377
)  
(1,579
)
Specific risk
  
(6,556
)  
(6,556
)
Change in Market RWAs
  
(9,984
)  
(10,186
)
Change in Operational RWAs
  
–
   
4,400
 
Ending balance
  
$563,575
   
$544,653
 
 
 
 
RWAs Rollforward Commentary
Three Months Ended March 2020.
Standardized Credit RWAs as of March 2020 increased by $10.28
 billion compared with December 2019, primarily reflecting an increase in derivatives, principally due to increased exposure, and an increase in commitments, guarantees and loans, principally due to increased lending activity. This increase was partially offset by decreased securities financing transactions and equity investments, primarily due to reduced exposures. Standardized Market RWAs as of March 2020 increased by
$20.63
 billion compared with December 2019, primarily reflecting an increase in stressed VaR, principally due to increased risk exposures, and an increase in regulatory VaR, principally due to market volatility.
Advanced Credit RWAs as of March 2020 increased by $40.81 billion compared with December 2019, primarily reflecting an increase in derivatives, principally due to increased exposure
including the impact of higher levels of volatility
and counterparty credit risk, and an increase in commitments, guarantees and loans, principally due to increased lending activity. This increase was partially offset by decreased equity investments, primarily due to reduced exposures. Advanced Market RWAs as of March 2020 increased by $20.84 billion compared with December 2019, primarily reflecting an increase in stressed VaR, principally due to increased risk exposures, and an increase in regulatory VaR, principally due to market volatility. Advanced Operational RWAs as of March 2020 were essentially unchanged compared with December 2019.
Year Ended December 2019.
Standardized Credit RWAs as of December 2019 increased by $25.65 billion compared with December 2018, primarily reflecting an increase in commitments, guarantees and loans, principally due to an increase in lending activity, and an increase in other credit RWAs, principally due to the recognition of operating lease
right-of-use
assets upon adoption of ASU No.
 2016-02
and an increase in corporate debt exposures. Standardized Market RWAs as of December 2019 decreased by $9.98 billion compared with December 2018, primarily reflecting a decrease in specific risk, principally due to reduced exposures, and a decrease in incremental risk, principally due to reduced exposures and changes in risk measurements.
Advanced Credit RWAs as of December 2019 decreased by $7.67 billion compared with December 2018. Beginning in the fourth quarter of 2019, the firm made changes to the calculation of the loss given default for certain wholesale exposures which resulted in a decrease in credit RWAs, primarily in commitments, guarantees and loans and derivatives. This decrease was partially offset by an increase in other credit RWAs, principally due to the recognition of operating lease
right-of-use
assets upon adoption of ASU No.
 2016-02
and an increase in corporate debt exposures. Advanced Market RWAs as of December 2019 decreased by $10.19 billion compared with December 2018, primarily reflecting a decrease in specific risk, principally due to reduced exposures, and a decrease in incremental risk, principally due to reduced exposures and changes in risk measurements. Advanced Operational RWAs as of December 2019 increased by $4.40 billion compared with December 2018, associated with litigation and regulatory proceedings.
   
75
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Bank Subsidiaries
Regulatory Capital Ratios.
GS Bank USA, the firm’s primary U.S. bank subsidiary, is an FDIC-insured, New York State-chartered bank and a member of the Federal Reserve System, is supervised and regulated by the FRB, the FDIC, the New York State Department of Financial Services and the Consumer Financial Protection Bureau, and is subject to regulatory capital requirements that are calculated in substantially the same manner as those applicable to BHCs. For purposes of assessing the adequacy of its capital, GS Bank USA calculates its risk-based capital and leverage ratios in accordance with the regulatory capital requirements applicable to state member banks. Those requirements are based on the Capital Framework described above. GS Bank USA is an Advanced approach banking organization under the Capital Framework.
Under the regulatory framework for prompt corrective action applicable to GS Bank USA, in order to meet the quantitative requirements for being a “well-capitalized” depository institution, GS Bank USA must also meet the “well-capitalized” requirements in the table below.
GS Bank USA’s capital levels and prompt corrective action classification are also subject to qualitative judgments by the regulators about components of capital, risk weightings and other factors. Failure to comply with these capital requirements, including a breach of the buffers described above, could result in restrictions being imposed by GS Bank USA’s regulators.
Similar to the firm, GS Bank USA is required to calculate each of the CET1 capital, Tier 1 capital and Total capital ratios in accordance with both the Standardized and Advanced Capital Rules. The lower of each risk-based capital ratio calculated in accordance with the Standardized and Advanced Capital Rules is the ratio against which GS Bank USA’s compliance with its risk-based capital requirements is assessed.
The table below presents GS Bank USA’s risk-based capital, leverage and “well-capitalized” requirements.
 
         
         
 
 
Requirements
 
 
 
“Well-capitalized”
Requirements
 
Risk-based capital requirements
  
   
 
CET1 capital ratio
 
 
7.0%
 
 
 
6.5%
 
Tier 1 capital ratio
 
 
8.5%
 
 
 
8.0%
 
Total capital ratio
 
 
10.5%
 
 
 
10.0%
 
 
Leverage requirements
 
 
 
  
 
Tier 1 leverage ratio
 
 
4.0%
 
 
 
5.0%
 
SLR
 
 
3.0%
 
 
 
6.0%
 
 
 
 
In the table above:
 
•
The CET1 capital ratio requirement includes a minimum of 4.5%, the Tier 1 capital ratio requirement includes a minimum of 6.0% and the Total capital ratio requirement includes a minimum of 8.0%. The requirements also include the capital conservation buffer of 2.5% and the countercyclical capital buffer, which the FRB has set to zero percent.
 
 
 
 
•
The “well-capitalized” requirements are the binding requirements for leverage ratios.
 
 
 
The table below presents information about GS Bank USA’s risk-based capital ratios.
 
         
         
$ in millions
  
Standardized
   
Advanced
 
As of March 2020
 
 
 
  
 
CET1 capital
 
 
$  29,760
 
 
 
$  29,760
 
Tier 1 capital
 
 
$  29,760
 
 
 
$  29,760
 
Tier 2 capital
 
 
$    5,710
 
 
 
$    4,644
 
Total capital
 
 
$  35,470
 
 
 
$  34,404
 
RWAs
 
 
$272,752
 
 
 
$164,238
 
 
CET1 capital ratio
 
 
10.9%
 
  
18.1%
 
Tier 1 capital ratio
 
 
10.9%
 
 
 
18.1%
 
Total capital ratio
 
 
13.0%
 
 
 
20.9%
 
 
As of December 2019
 
 
 
  
 
CET1 capital
  
$  29,176
   
$  29,176
 
Tier 1 capital
  
$  29,176
   
$  29,176
 
Tier 2 capital
  
$    5,293
   
$    4,486
 
Total capital
  
$  34,469
   
$  33,662
 
RWAs
  
$258,541
   
$135,596
 
 
CET1 capital ratio
  
11.3%
   
21.5%
 
Tier 1 capital ratio
  
11.3%
   
21.5%
 
Total capital ratio
  
13.3%
   
24.8%
 
 
 
 
In the table above:
 
•
The lower of the Standardized or Advanced ratio is the ratio against which GS Bank USA’s compliance with the capital requirements is assessed under the risk-based Capital Rules, and therefore, the Standardized ratios applied to GS Bank USA as of both March 2020 and December 2019.
 
 
 
•
As permitted by the FRB, GS Bank USA has elected to temporarily delay the estimated effects of adopting CECL on regulatory capital until January 2022 and to subsequently phase-in the effects through January 2025. In addition, during 2020 and 2021, GS Bank USA has elected to increase regulatory capital by 25% of the increase in the allowance for credit losses since January 1, 2020, as permitted by the rules issued by the FRB. The impact of this increase will also be phased in over the three-year transition period. Reflecting the full impact of CECL as of March 2020 would not have had a material impact on GS Bank USA’s Standardized risk-based capital ratios.
 
 
 
   
Goldman Sachs March 2020 Form 10-Q
 
76
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
 
 
•
The Standardized risk-based capital ratios and the Advanced risk-based capital ratios both decreased from December 2019 to March 2020, primarily due to an increase in Credit RWAs and Market RWAs.
The table below presents information about GS Bank USA’s leverage ratios.
 
         
    
 
For the Three Months
Ended or as of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Tier 1 capital
 
 
$  29,760
 
  
$  29,176
 
Average adjusted total assets
 
 
$243,007
 
  
$220,974
 
Total leverage exposure
 
 
$425,724
 
  
$413,852
 
 
Tier 1 leverage ratio
 
 
12.2%
 
  
13.2%
 
SLR
 
 
7.0%
 
  
7.0%
 
 
 
 
 
 
 
 
In the table above:
 
•
Tier 1 leverage ratio is calculated as Tier 1 capital divided by average adjusted total assets.
 
 
 
 
 
 
 
 
 
 
•
SLR is calculated as Tier 1 capital divided by total leverage exposure.
 
 
 
 
 
 
The firm’s principal
non-U.S.
bank subsidiary, GSIB, is a wholly-owned credit institution, regulated by the Prudential Regulation Authority and the Financial Conduct Authority and is subject to regulatory capital requirements. As of both March 2020 and December 2019, GSIB was in compliance with its regulatory capital requirements.
Other.
The deposits of GS Bank USA are insured by the FDIC to the extent provided by law. The FRB requires that GS Bank USA maintain cash reserves with the Federal Reserve Bank of New York. The amount deposited by GS Bank USA at the Federal Reserve Bank of New York was $34.16 billion as of March 2020 and $50.55 billion as of December 2019, which exceeded required reserve amounts by $34.16 billion as of March 2020 and $50.29 billion as of December 2019.
Restrictions on Payments
Group Inc. may be limited in its ability to access capital held at certain subsidiaries as a result of regulatory, tax or other constraints. These limitations include provisions of applicable law and regulations and other regulatory restrictions that limit the ability of those subsidiaries to declare and pay dividends without prior regulatory approval (e.g., dividends that may be paid by GS Bank USA are limited to the lesser of the amounts calculated under a recent earnings test and an undivided profits test) even if the relevant subsidiary would satisfy the equity capital requirements applicable to it after giving effect to the dividend. For example, the FRB, the FDIC and the New York State Department of Financial Services have authority to prohibit or to limit the payment of dividends by the banking organizations they supervise (including GS Bank USA) if, in the regulator’s opinion, payment of a dividend would constitute an unsafe or unsound practice in light of the financial condition of the banking organization.
In addition,
subsidiaries not subject to separate regulatory capital requirements may hold capital to satisfy local tax and legal guidelines, rating agency requirements (for entities with assigned credit ratings) or internal policies, including policies concerning the minimum amount of capital a subsidiary should hold based on its underlying level of risk.
Group Inc.’s equity investment in subsidiaries was $95.59 billion as of March 2020 and $95.68 billion as of December 2019, of which Group Inc. was required to maintain $63.09 billion as of March 2020 and $57.58 billion as of December 2019, of minimum equity capital in its regulated subsidiaries in order to satisfy the regulatory requirements of such subsidiaries.
Group Inc.’s capital invested in certain
non-U.S.
subsidiaries is exposed to foreign exchange risk, substantially all of which is managed through a combination of derivatives and
non-U.S.
denominated debt. See Note 7 for information about the firm’s net investment hedges used to hedge this risk.
   
77
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 21.
Earnings Per Common Share
Basic earnings per common share (EPS) is calculated by dividing net earnings to common by the weighted average number of common shares outstanding and RSUs for which the delivery of the underlying common stock is not subject to satisfaction of future service or performance conditions (collectively, basic shares). Diluted EPS includes the determinants of basic EPS and, in addition, reflects the dilutive effect of the common stock deliverable for RSUs for which the delivery of the underlying common stock is subject to satisfaction of future service or performance conditions.
The table below presents information about basic and diluted EPS.
 
         
    
 
Three Months
Ended March
 
         
in millions, except per share amounts
 
 
2020
 
  
2019
 
Net earnings to common
 
 
$1,123
 
  
$2,182
 
Weighted average basic shares
 
 
358.0
 
  
379.8
 
Effect of dilutive RSUs
 
 
3.1
 
  
2.6
 
Weighted average diluted shares
 
 
361.1
 
  
382.4
 
 
Basic EPS
 
 
$  3.12
 
  
$  5.73
 
Diluted EPS
 
 
$  3.11
 
  
$  5.71
 
 
 
 
 
 
 
 
In the table above:
 
•
Net earnings to common represents net earnings applicable to common shareholders, which is calculated as net earnings less preferred stock dividends.
 
 
 
 
 
 
 
 
 
 
•
Unvested share-based awards that have
non-forfeitable
rights to dividends or dividend equivalents are treated as a separate class of securities under the
two-class
method. Distributed earnings allocated to these securities reduce net earnings to common to calculate basic EPS. The impact of applying this methodology was a reduction in basic EPS of $0.02 for both the three months ended March 2020 and March 2019.
 
 
 
 
 
 
 
 
 
 
•
Diluted EPS does not include antidilutive RSUs of 0.1 million for the three months ended March 2020 and 0.2 million for the three months ended March 2019.
 
 
 
 
 
 
 
Note 22.
Transactions with Affiliated Funds
The firm has formed nonconsolidated investment funds with third-party investors. As the firm generally acts as the investment manager for these funds, it is entitled to receive management fees and, in certain cases, advisory fees or incentive fees from these funds. Additionally, the firm invests alongside the third-party investors in certain funds.
The tables below present information about affiliated funds.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Fees earned from funds
 
 
$   921
 
  
$   706
 
 
 
 
 
 
 
 
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Fees receivable from funds
 
 
$   877
 
  
$   780
 
Aggregate carrying value of interests in funds
 
 
$4,031
 
  
$5,490
 
 
 
 
 
 
 
 
The firm may periodically determine to waive certain management fees on selected money market funds. Management fees waived were $12 million for the three months ended March 2020 and $10 million for the three months ended March 2019.
The Volcker Rule restricts the firm from providing financial support to covered funds (as defined in the rule) after the expiration of the conformance period. As a general matter, in the ordinary course of business, the firm does not expect to provide additional voluntary financial support to any covered funds, but may choose to do so with respect to funds that are not subject to the Volcker Rule. However, any such support is not expected to be material to the results of operations of the firm.
In March 2020, GS Bank USA and unaffiliated entities purchased certificates of deposit and commercial paper from two money market funds managed by the firm. These funds are not covered funds under the Volcker Rule. GS Bank USA’s purchase price of
$1.84 
billion represented the fair value of these securities, which also closely approximated their face values. These purchases were made to promote liquidity in the short-term credit markets and to increase the funds’ weekly liquid assets. These securities are included within investments in the consolidated balance sheets. Group Inc. has provided a guarantee to GS Bank USA in connection with these securities. See Note 18 for information about guarantees provided by Group Inc. to subsidiaries. In addition, the firm had an outstanding guarantee, as permitted under the Volcker Rule, on behalf of its funds of
$87 
million as of both March 2020 and December 2019. The firm has voluntarily provided this guarantee in connection with a financing agreement with a third-party lender executed by one of the firm’s real estate funds that is not covered by the Volcker Rule. As of and during March 2020 and December 2019, except as noted above, the firm has not provided any additional financial support to its affiliated funds.
In addition, in the ordinary course of business, the firm may also engage in other activities with its affiliated funds, including, among others, securities lending, trade execution, market-making, custody, and acquisition and bridge financing. See Note 18 for information about the firm’s investment commitments related to these funds.
   
Goldman Sachs March 2020 Form 10-Q
 
78
 
 
 
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 23.
Interest Income and Interest Expense
Interest is recorded over the life of the instrument on an accrual basis based on contractual interest rates.
The table below presents sources of interest income and interest expense.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Deposits with banks
 
 
$   205
 
  
$   377
 
Collateralized agreements
 
 
534
 
  
1,304
 
Trading assets
 
 
1,573
 
  
1,388
 
Investments
 
 
471
 
  
395
 
Loans
 
 
1,316
 
  
1,319
 
Other interest
 
 
651
 
  
814
 
Total interest income
 
 
4,750
 
  
5,597
 
Deposits
 
 
818
 
  
857
 
Collateralized financings
 
 
448
 
  
669
 
Trading liabilities
 
 
314
 
  
366
 
Short-term borrowings
 
 
141
 
  
142
 
Long-term borrowings
 
 
1,105
 
  
1,384
 
Other interest
 
 
611
 
  
961
 
Total interest expense
 
 
3,437
 
  
4,379
 
Net interest income
 
 
$1,313
 
  
$1,218
 
 
 
In the table above:
 
•
Collateralized agreements includes rebates paid and interest income on securities borrowed.
 
 
 
 
•
Loans excludes interest on loans held for sale that are accounted for at the lower of cost or fair value. Such interest is included within other interest.
 
 
 
 
•
Other interest income includes interest income on customer debit balances, other interest-earning assets and loans held for sale that are accounted for at the lower of cost or fair value.
 
 
 
 
•
Collateralized financings consists of repurchase agreements and securities loaned.
 
 
 
 
•
Short- and long-term borrowings include both secured and unsecured borrowings.
 
 
 
 
•
Other interest expense includes rebates received on other interest-bearing liabilities and interest expense on customer credit balances.
 
 
Note 24.
Income Taxes
Provision for Income Taxes
Income taxes are provided for using the asset and liability method under which deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax bases of assets and liabilities. The firm reports interest expense related to income tax matters in provision for taxes and income tax penalties in other expenses.
Deferred Income Taxes
Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. Valuation allowances are established to reduce deferred tax assets to the amount that more likely than not will be realized and primarily relate to the ability to utilize losses in various tax jurisdictions. Tax assets are included in other assets and tax liabilities are included in other liabilities.
Unrecognized Tax Benefits
The firm recognizes tax positions in the consolidated financial statements only when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement. A liability is established for differences between positions taken in a tax return and amounts recognized in the consolidated financial statements.
Regulatory Tax Examinations
The firm is subject to examination by the U.S. Internal Revenue Service (IRS) and other taxing authorities in jurisdictions where the firm has significant business operations, such as the United Kingdom, Japan, Hong Kong and various states, such as New York. The tax years under examination vary by jurisdiction. The firm does not expect completion of these audits to have a material impact on the firm’s financial condition, but it may be material to operating results for a particular period, depending, in part, on the operating results for that period.
   
79
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents the earliest tax years that remain subject to examination by major jurisdiction.
 
     
     
Jurisdiction
 
 
As of March 2020
 
U.S. Federal
 
 
2011
 
New York State and City
 
 
2011
 
United Kingdom
 
 
2017
 
Japan
 
 
2014
 
Hong Kong
 
 
2013
 
 
 
U.S. Federal examinations of 2011 and 2012 began in 2013. The firm has been accepted into the Compliance Assurance Process program by the IRS for each of the tax years from 2013 through 2020. This program allows the firm to work with the IRS to identify and resolve potential U.S. Federal tax issues before the filing of tax returns. The 2013 through 2018 tax years remain subject to post-filing review.
New York State and City examinations (excluding GS Bank USA) of 2011 through 2014 began in 2017. New York State and City examinations for GS Bank USA have been completed through 2014.
All years including and subsequent to the years in the table above remain open to examination by the taxing authorities. The firm believes that the liability for unrecognized tax benefits it has established is adequate in relation to the potential for additional assessments.
Note 25.
Business Segments
The firm reports its activities in the following four business segments: Investment Banking, Global Markets, Asset Management and Consumer & Wealth Management. See Note 1 for information about the firm’s business segments.
Compensation and benefits expenses in the firm’s segments reflect, among other factors, the overall performance of the firm, as well as the performance of individual businesses. Consequently,
pre-tax
margins in one segment of the firm’s business may be significantly affected by the performance of the firm’s other business segments.
The firm allocates assets (including allocations of global core liquid assets and cash, secured client financing and other assets), revenues and expenses among the four business segments. Due to the integrated nature of these segments, estimates and judgments are made in allocating certain assets, revenues and expenses. The allocation process is based on the manner in which management currently views the performance of the segments.
The allocation of common shareholders’ equity and preferred stock dividends to each segment is based on the estimated amount of equity required to support the activities of the segment under relevant regulatory capital requirements.
Net earnings for each segment is calculated by applying the firmwide tax rate to each segment’s
pre-tax
earnings.
Management believes that this allocation provides a reasonable representation of each segment’s contribution to consolidated net earnings to common, return on average common equity and total assets. Transactions between segments are based on specific criteria or approximate third-party rates.
   
Goldman Sachs March 2020 Form 10-Q
 
80
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Segment Results
The table below presents a summary of the firm’s segment results.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Investment Banking
 
 
 
  
 
Non-interest
revenues
 
 
$
 
  2,046
 
  
$  1,627
 
Net interest income
 
 
138
 
  
119
 
Total net revenues
 
 
2,184
 
  
1,746
 
Provision for credit losses
 
 
622
 
  
86
 
Operating expenses
 
 
1,169
 
  
1,005
 
Pre-tax
earnings
 
 
$  
 
   393
 
  
$     655
 
Net earnings
 
 
$   
 
  354
 
  
$     543
 
Net earnings to common
 
 
$   
 
  343
 
  
$     535
 
Average common equity
 
 
$
 
11,308
 
  
$11,496
 
Return on average common equity
 
 
12.1%
 
  
18.6%
 
 
Global Markets
 
 
 
  
 
Non-interest
revenues
 
 
$ 
 
 4,652
 
  
$  3,483
 
Net interest income
 
 
511
 
  
557
 
Total net revenues
 
 
5,163
 
  
4,040
 
Provision for credit losses
 
 
68
 
  
3
 
Operating expenses
 
 
2,847
 
  
2,748
 
Pre-tax
earnings
 
 
$
 
  2,248
 
  
$  1,289
 
Net earnings
 
 
$
 
  2,023
 
  
$  1,068
 
Net earnings to common
 
 
$
 
  1,964
 
  
$  1,020
 
Average common equity
 
 
$
 
39,797
 
  
$40,705
 
Return on average common equity
 
 
19.7%
 
  
10.0%
 
 
Asset Management
 
 
 
  
 
Non-interest
revenues
 
 
$ 
 
   (267
)
  
$  1,646
 
Net interest income
 
 
171
 
  
147
 
Total net revenues
 
 
(96
)
  
1,793
 
Provision for credit losses
 
 
79
 
  
13
 
Operating expenses
 
 
1,198
 
  
1,103
 
Pre-tax
earnings/(loss)
 
 
$
 
 
(1,373
)
  
$     677
 
Net earnings/(loss)
 
 
$
 
 
(1,236
)
  
$     559
 
Net earnings/(loss) to common
 
 
$
 
 
(1,250
)
  
$     549
 
Average common equity
 
 
$
 
21,156
 
  
$20,365
 
Return on average common equity
 
 
(23.6)%
 
  
10.8%
 
 
Consumer & Wealth Management
 
 
 
  
 
Non-interest
revenues
 
 
$ 
 
    999
 
  
$     833
 
Net interest income
 
 
493
 
  
395
 
Total net revenues
 
 
1,492
 
  
1,228
 
Provision for credit losses
 
 
168
 
  
122
 
Operating expenses
 
 
1,244
 
  
1,008
 
Pre-tax
earnings
 
 
$  
 
     80
 
  
$       98
 
Net earnings
 
 
$ 
 
      72
 
  
$       81
 
Net earnings to common
 
 
$ 
 
      66
 
  
$       78
 
Average common equity
 
 
$
 
  7,002
 
  
$  5,859
 
Return on average common equity
 
 
3.8%
 
  
5.3%
 
 
Total
 
 
 
  
 
Non-interest
revenues
 
 
$
 
  7,430
 
  
$  7,589
 
Net interest income
 
 
1,313
 
  
1,218
 
Total net revenues
 
 
8,743
 
  
8,807
 
Provision for credit losses
 
 
937
 
  
224
 
Operating expenses
 
 
6,458
 
  
5,864
 
Pre-tax
earnings
 
 
$ 
 
 1,348
 
  
$  2,719
 
Net earnings
 
 
$
 
  1,213
 
  
$  2,251
 
Net earnings to common
 
 
$
 
  1,123
 
  
$  2,182
 
Average common equity
 
 
$
 
79,263
 
  
$78,425
 
Return on average common equity
 
 
5.7%
 
  
11.1%
 
 
 
 
 
 
 
In the table above:
 
•
Revenues and expenses directly associated with each segment are included in determining
pre-tax
earnings.
 
•
Net revenues in the firm’s segments include allocations of interest income and expense to specific positions in relation to the cash generated by, or funding requirements of, such positions. Net interest is included in segment net revenues as it is consistent with how management assesses segment performance.
 
•
Overhead expenses not directly allocable to specific segments are allocated ratably based on direct segment expenses.
The table below presents depreciation and amortization expense by segment.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Investment Banking
 
 
$  39
 
  
$  29
 
Global Markets
 
 
133
 
  
147
 
Asset Management
 
 
170
 
  
137
 
Consumer & Wealth Management
 
 
95
 
  
55
 
Total
 
 
$437
 
  
$368
 
 
 
 
 
 
 
Segment Assets
The table below presents assets by segment.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December 2019
 
Investment Banking
 
 
$   105,059
 
  
$  92,009
 
Global Markets
 
 
800,476
 
  
725,060
 
Asset Management
 
 
92,636
 
  
92,102
 
Consumer & Wealth Management
 
 
91,585
 
  
83,797
 
Total
 
 
$1,089,756
 
  
$992,968
 
 
 
 
 
 
 
The table below presents gross loans by segment and loan type.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December 2019
 
Corporate
 
 
$     48,121
 
  
$  27,035
 
Investment Banking
 
 
48,121
 
  
27,035
 
 
Corporate
 
 
12,881
 
  
11,852
 
Real estate
 
 
12,787
 
  
15,671
 
Other
 
 
4,873
 
  
3,756
 
Global Markets
 
 
30,541
 
  
31,279
 
 
Corporate
 
 
7,528
 
  
7,420
 
Real estate
 
 
8,456
 
  
9,030
 
Other
 
 
751
 
  
1,036
 
Asset Management
 
 
16,735
 
  
17,486
 
 
Wealth management
 
 
29,017
 
  
27,940
 
Installment
 
 
4,826
 
  
4,747
 
Credit cards
 
 
2,081
 
  
1,858
 
Consumer & Wealth Management
 
 
35,924
 
  
34,545
 
Total
 
 
$   131,321
 
  
$110,345
 
 
 
 
 
 
 
   
81
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The table below presents the allowance for loan losses by segment.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Investment Banking
 
 
$1,174
 
  
$   470
 
Global Markets
 
 
269
 
  
168
 
Asset Management
 
 
489
 
  
385
 
Consumer & Wealth Management
 
 
936
 
  
418
 
Total
 
 
$2,868
 
  
$1,441
 
 
 
 
 
 
 
See Note 9 for further information about loans.
Geographic Information
Due to the highly integrated nature of international financial markets, the firm manages its businesses based on the profitability of the enterprise as a whole. The methodology for allocating profitability to geographic regions is dependent on estimates and management judgment because a significant portion of the firm’s activities require cross-border coordination in order to facilitate the needs of the firm’s clients. Geographic results are generally allocated as follows:
 
•
Investment Banking: location of the client and investment banking team.
 
 
 
 
 
 
 
•
Global Markets: FICC and Equities intermediation: location of the market-making desk; FICC and Equities financing (excluding prime brokerage financing): location of the desk; prime brokerage financing: location of the primary market for the underlying security.
 
 
 
 
 
 
 
•
Asset Management (excluding Equity investments and Lending and debt investments): location of the sales team; Equity investments: location of the investment; Lending and debt investments: location of the client.
 
 
 
 
 
 
 
•
Consumer & Wealth Management: Wealth management: location of the sales team; Consumer banking: location of the client.
The table below presents total net revenues and
pre-tax
earnings by geographic region.
 
                 
       
$ in millions
 
2020
  
2019
 
Three Months Ended March
 
 
 
 
 
 
  
   
 
Americas
 
 
$5,171
 
 
 
59%
 
  
$5,245
   
60%
 
EMEA
 
 
2,108
 
 
 
24%
 
  
2,459
   
28%
 
Asia
 
 
1,464
 
 
 
17%
 
  
1,103
   
12%
 
Total net revenues
 
 
$8,743
 
 
 
100%
 
  
$8,807
   
100%
 
Americas
 
 
$   
551
 
 
 
41%
 
  
$1,488
   
55%
 
EMEA
 
 
436
 
 
 
32%
 
  
911
   
33%
 
Asia
 
 
361
 
 
 
27%
 
  
320
   
12%
 
Total
pre-tax
earnings
 
 
$1,348
 
 
 
100%
 
  
$2,719
   
100%
 
 
 
 
 
 
 
In the table above:
 
•
Results in Americas were primarily attributable to the U.S.
 
 
 
 
 
 
 
•
Asia includes Australia and New Zealand.
 
 
 
 
 
 
Note 26.
Credit Concentrations
The firm’s concentrations of credit risk arise from its market making, client facilitation, investing, underwriting, lending and collateralized transactions, and cash management activities, and may be impacted by changes in economic, industry or political factors. These activities expose the firm to many different industries and counterparties, and may also subject the firm to a concentration of credit risk to a particular central bank, counterparty, borrower or issuer, including sovereign issuers, or to a particular clearing house or exchange. The firm seeks to mitigate credit risk by actively monitoring exposures and obtaining collateral from counterparties as deemed appropriate.
The firm measures and monitors its credit exposure based on amounts owed to the firm after taking into account risk mitigants that
the firm considers when determining credit risk. Such risk mitigants include netting and collateral arrangements and economic hedges, such as credit derivatives, futures and forward contracts. Netting and collateral agreements permit the firm to offset receivables and payables with such counterparties and/or enable the firm to obtain collateral on an upfront or contingent basis.
The table below presents the credit concentrations included in trading cash instruments and investments.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
U.S. government and agency obligations
 
 
$162,690
 
  
$167,097
 
Percentage of total assets
 
 
14.9%
 
  
16.8%
 
Non-U.S.
government and agency obligations
 
 
$  47,457
 
  
$  44,875
 
Percentage of total assets
 
 
4.4%
 
  
4.5%
 
 
 
 
 
 
 
   
Goldman Sachs March 2020 Form 10-Q
 
82
 
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
In addition, the firm had $64.10 billion as of March 2020 and $96.97 billion as of December 2019 of cash deposits held at central banks (included in cash and cash equivalents), of which $34.16 billion as of March 2020 and $50.55 billion as of December 2019 was held at the Federal Reserve Bank of New York.
As of both March 2020 and December 2019, the firm did not have credit exposure to any other counterparty that exceeded 2% of total assets.
Collateral obtained by the firm related to derivative assets is principally cash and is held by the firm or a third-party custodian. Collateral obtained by the firm related to resale agreements and securities borrowed transactions is primarily U.S. government and agency obligations and
non-U.S.
government and agency obligations. See Note 11 for further information about collateralized agreements and financings.
The table below presents U.S. government and agency obligations and
non-U.S.
government and agency obligations that collateralize resale agreements and securities borrowed transactions.
 
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
U.S. government and agency obligations
 
 
$80,136
 
  
$49,396
 
Non-U.S.
government and agency obligations
 
 
$72,573
 
  
$55,889
 
In the table above:
 
•
Non-U.S.
government and agency obligations primarily consists of securities issued by the governments of Japan, France, the U.K. and Germany.
 
•
Given that the firm’s primary credit exposure on such transactions is to the counterparty to the transaction, the firm would be exposed to the collateral issuer only in the event of counterparty default.
Note 27.
Legal Proceedings
The firm is involved in a number of judicial, regulatory and arbitration proceedings (including those described below) concerning matters arising in connection with the conduct of the firm’s businesses. Many of these proceedings are in early stages, and many of these cases seek an indeterminate amount of damages.
Under ASC 450, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” Thus, references to the upper end of the range of reasonably possible loss for cases in which the firm is able to estimate a range of reasonably possible loss mean the upper end of the range of loss for cases for which the firm believes the risk of loss is more than slight.
With respect to matters described below for which management has been able to estimate a range of reasonably possible loss where (i) actual or potential plaintiffs have claimed an amount of money damages, (ii) the firm is being, or threatened to be, sued by purchasers in a securities offering and is not being indemnified by a party that the firm believes will pay the full amount of any judgment, or (iii) the purchasers are demanding that the firm repurchase securities, management has estimated the upper end of the range of reasonably possible loss as being equal to (a) in the case of (i), the amount of money damages claimed, (b) in the case of (ii), the difference between the initial sales price of the securities that the firm sold in such offering and the estimated lowest subsequent price of such securities prior to the action being commenced and (c) in the case of (iii), the price that purchasers paid for the securities less the estimated value, if any, as of March 2020 of the relevant securities, in each of cases (i), (ii) and (iii), taking into account any other factors believed to be relevant to the particular matter or matters of that type. As of the date hereof, the firm has estimated the upper end of the range of reasonably possible aggregate loss for such matters and for any other matters described below where management has been able to estimate a range of reasonably possible aggregate loss to be approximately $3.2 billion in excess of the aggregate reserves for such matters.
83
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Management is generally unable to estimate a range of reasonably possible loss for matters other than those included in the estimate above, including where (i) actual or potential plaintiffs have not claimed an amount of money damages, except in those instances where management can otherwise determine an appropriate amount, (ii) matters are in early stages, (iii) matters relate to regulatory investigations or reviews, except in those instances where management can otherwise determine an appropriate amount, (iv) there is uncertainty as to the likelihood of a class being certified or the ultimate size of the class, (v) there is uncertainty as to the outcome of pending appeals or motions, (vi) there are significant factual issues to be resolved, and/or (vii) there are novel legal issues presented. For example, the firm’s potential liabilities with respect to the investigations and reviews described below in “Regulatory Investigations and Reviews and Related Litigation” generally are not included in management’s estimate of reasonably possible loss. However, management does not believe, based on currently available information, that the outcomes of such other matters will have a material adverse effect on the firm’s financial condition, though the outcomes could be material to the firm’s operating results for any particular period, depending, in part, upon the operating results for such period. See Note 18 for further information about mortgage-related contingencies.
1Malaysia Development Berhad (1MDB)-Related Matters
The firm has received subpoenas and requests for documents and information from various governmental and regulatory bodies and self-regulatory organizations as part of investigations and reviews relating to financing transactions and other matters involving 1MDB, a sovereign wealth fund in Malaysia. Subsidiaries of the firm acted as arrangers or purchasers of approximately $6.5 billion of debt securities of 1MDB.
On November 1, 2018, the U.S. Department of Justice (DOJ) unsealed a criminal information and guilty plea by Tim Leissner, a former participating managing director of the firm, and an indictment against Ng Chong Hwa, a former managing director of the firm, and Low Taek Jho. Leissner pleaded guilty to a
two-count
criminal information charging him with conspiring to launder money and conspiring to violate the U.S. Foreign Corrupt Practices Act’s (FCPA) anti-bribery and internal accounting controls provisions. Low and Ng were charged in a three-count indictment with conspiring to launder money and conspiring to violate the FCPA’s anti-bribery provisions. On August 28, 2018, Leissner’s guilty plea was accepted by the U.S. District Court for the Eastern District of New York and Leissner was adjudicated guilty on both counts. Ng was also charged in this indictment with conspiring to violate the FCPA’s internal accounting controls provisions. The charging documents state, among other things, that Leissner and Ng participated in a conspiracy to misappropriate proceeds of the 1MDB offerings for themselves and to pay bribes to various government officials to obtain and retain 1MDB business for the firm. The plea and charging documents indicate that Leissner and Ng knowingly and willfully circumvented the firm’s system of internal accounting controls, in part by repeatedly lying to control personnel and internal committees that reviewed these offerings. The indictment of Ng and Low alleges that the firm’s system of internal accounting controls could be easily circumvented and that the firm’s business culture, particularly in Southeast Asia, at times prioritized consummation of deals ahead of the proper operation of its compliance functions. On May 6, 2019, Ng pleaded not guilty to the DOJ’s criminal charges. On February 4, 2020, the FRB disclosed that Andrea Vella, a former participating managing director whom the DOJ had previously referred to as an unindicted
co-conspirator,
had agreed, without admitting or denying the FRB’s allegations, to a consent order that prohibited him from participating in the banking industry. No other penalties were imposed by the consent order.
Goldman Sachs March 2020 Form 10-Q
 
84
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
On December 17, 2018, the Attorney General of Malaysia filed criminal charges in Malaysia against GSI, as the arranger of three offerings of debt securities of 1MDB, aggregating approximately $6.5 billion in principal amount, for alleged disclosure deficiencies in the offering documents relating to, among other things, the use of proceeds for the debt securities, as well as against Goldman Sachs (Asia) LLC (GS Asia) and Goldman Sachs (Singapore) PTE (GS Singapore). Criminal charges have also been filed against Leissner, Low, Ng and Jasmine Loo Ai Swan. In a related press release, the Attorney General of Malaysia indicated that prosecutors in Malaysia will seek criminal fines against the accused in excess of $2.7 billion plus the $600 million of fees received in connection with the debt offerings. On August 9, 2019, the Attorney General of Malaysia announced that criminal charges had also been filed against seventeen current and former directors of GSI, GS Asia and GS Singapore.
The Malaysia Securities Commission issued notices to show cause against Goldman Sachs (Malaysia) Sdn Bhd (GS Malaysia) in December 2018 and March 2019 that (i) allege possible violations of Malaysian securities laws and (ii) indicate that the Malaysia Securities Commission is considering whether to revoke GS Malaysia’s license to conduct corporate finance and fund management activities in Malaysia.
The firm has received multiple demands, beginning in November 2018, from alleged shareholders under Section 220 of the Delaware General Corporation Law for books and records relating to, among other things, the firm’s involvement with 1MDB and the firm’s compliance procedures. On December 13, 2019, an alleged shareholder filed a lawsuit in the Court of Chancery of the State of Delaware seeking books and records relating to, among other things, the firm’s involvement with 1MDB and the firm’s compliance procedures. The parties have agreed to stay proceedings pending resolution of the books and records demand.
On February 19, 2019, a purported shareholder derivative action relating to 1MDB was filed in the U.S. District Court for the Southern District of New York against Group Inc. and the directors at the time and a former chairman and chief executive officer of the firm. The amended complaint filed on July 12, 2019, which seeks unspecified damages, disgorgement and injunctive relief, alleges breaches of fiduciary duties, including in connection with alleged insider trading by certain current and former directors, unjust enrichment and violations of the anti-fraud provisions of the Exchange Act, including in connection with Group Inc.’s common stock repurchases and solicitation of proxies. Defendants moved to dismiss this action on September 12, 2019.
Beginning in March 2019, the firm has also received demands from alleged shareholders to investigate and pursue claims against certain current and former directors and executive officers based on their oversight and public disclosures regarding 1MDB and related internal controls.
On November 21, 2018, a summons with notice was filed in New York Supreme Court, County of New York, by International Petroleum Investment Company, which guaranteed certain debt securities issued by 1MDB, and its subsidiary Aabar Investments PJS. The summons with notice makes unspecified claims relating to 1MDB and seeks unspecified compensatory and punitive damages and other relief against Group Inc., GSI, GS Asia, GS Singapore, GS Malaysia, Leissner, Ng, and Vella, as well as individuals (who are not current or former employees of the firm) previously associated with the plaintiffs.
On December 20, 2018, a putative securities class action lawsuit was filed in the U.S. District Court for the Southern District of New York against Group Inc. and certain former officers of the firm alleging violations of the anti-fraud provisions of the Exchange Act with respect to Group Inc.’s disclosures concerning 1MDB and seeking unspecified damages. The plaintiffs filed the second amended complaint on October 28, 2019, which the defendants moved to dismiss on January 9, 2020.
The firm is cooperating with the DOJ and all other governmental and regulatory investigations relating to 1MDB. The firm is also engaged in discussions with certain governmental and regulatory authorities with respect to potential resolution of their investigations and proceedings. There can be no assurance that the discussions will lead to resolution of any of those matters. Any such resolution, as well as proceedings by the DOJ or other governmental or regulatory authorities, could result in the imposition of significant fines, penalties and other sanctions against the firm, including restrictions on the firm’s activities.
Mortgage-Related Matters
Beginning in April 2010, a number of purported securities law class actions were filed in the U.S. District Court for the Southern District of New York challenging the adequacy of Group Inc.’s public disclosure of, among other things, the firm’s activities in the collateralized debt obligation market, and the firm’s conflict of interest management.
   
85
 
Goldman Sachs March 2020 Form 10-Q
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The consolidated amended complaint filed on July 25, 2011, which names as defendants Group Inc. and certain current and former officers and employees of Group Inc. and its affiliates, generally alleges violations of Sections 10(b) and 20(a) of the Exchange Act and seeks unspecified damages. The defendants have moved for summary judgment. On April 7, 2020, the Second Circuit Court of Appeals affirmed the district court’s August 14, 2018 grant of class certification.
Beginning on February 15, 2019, a summons with notice and a complaint were filed against Goldman Sachs Mortgage Company and GS Mortgage Securities Corp. by U.S. Bank National Association, as trustee for two residential mortgage-backed securitization trusts that issued $1.7 billion of securities, and the cases are pending in the U.S. District Court for the Southern District of New York. The summons with notice and complaint generally allege that mortgage loans in the trusts failed to conform to applicable representations and warranties and seek specific performance or, alternatively, compensatory damages and other relief. Defendants moved to dismiss the complaint on September 23, 2019.
The firm continues to receive requests for information, including from certain regulators, relating to mortgage-related activities.
Director Compensation-Related Litigation
On May 9, 2017, Group Inc. and certain of its current and former directors were named as defendants in a purported direct and derivative shareholder action in the Court of Chancery of the State of Delaware (a similar purported derivative action, filed in June 2015, alleging excessive director compensation over the period 2012 to 2014 was voluntarily dismissed without prejudice in December 2016). The complaint alleges that excessive compensation has been paid to the
non-employee
director defendants since 2015, and that certain disclosures in connection with soliciting shareholder approval of the stock incentive plans were deficient. The complaint asserts claims for breaches of fiduciary duties and seeks, among other things, rescission or in some cases rescissory damages, disgorgement, and shareholder votes on several matters. On October 23, 2018, the court declined to approve the parties’ proposed settlement. On May 31, 2019, the court dismissed the disclosure-related claims, but permitted the
non-employee
director compensation claim to proceed. The parties have filed a proposed settlement with the Delaware court, which is subject to court approval. As part of the proposed settlement, the firm has agreed to certain changes to its Non-Employee Director Compensation Program.
Currencies-Related Litigation
GS&Co. and Group Inc. are among the defendants named in putative class actions filed in the U.S. District Court for the Southern District of New York beginning in September 2016 on behalf of putative indirect purchasers of foreign exchange instruments. On August 5, 2019, the plaintiffs filed a third consolidated amended complaint generally alleging a conspiracy to manipulate the foreign currency exchange markets, asserting claims under various state antitrust laws and state consumer protection laws and seeking treble damages in an unspecified amount. In February 2020, the parties reached a settlement in principle, subject to documentation and court approval. The firm has reserved the full amount of its proposed contribution to the settlement.
GS&Co. and Group Inc. are among the defendants named in an action filed in the U.S. District Court for the Southern District of New York on November 7, 2018 by certain direct purchasers of foreign exchange instruments that opted out of a class settlement reached with, among others, GS&Co. and Group Inc. The second amended complaint, filed on June 11, 2019, generally alleges that the defendants violated federal antitrust law and state common law in connection with an alleged conspiracy to manipulate the foreign currency exchange markets and seeks declaratory and injunctive relief, as well as unspecified amounts of compensatory, punitive, treble and other damages. Defendants moved to dismiss on July 25, 2019.
Financial Advisory Services
Group Inc. and certain of its affiliates are from time to time parties to various civil litigation and arbitration proceedings and other disputes with clients and third parties relating to the firm’s financial advisory activities. These claims generally seek, among other things, compensatory damages and, in some cases, punitive damages, and in certain cases allege that the firm did not appropriately disclose or deal with conflicts of interest.
   
Goldman Sachs March 2020 Form 10-Q
 
86
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Underwriting Litigation
Firm affiliates are among the defendants in a number of proceedings in connection with securities offerings. In these proceedings, including those described below, the plaintiffs assert class action or individual claims under federal and state securities laws and in some cases other applicable laws, allege that the offering documents for the securities that they purchased contained material misstatements and omissions, and generally seek compensatory and rescissory damages in unspecified amounts. Certain of these proceedings involve additional allegations.
Adeptus Health Inc.
GS&Co. is among the underwriters named as defendants in several putative securities class actions, filed beginning in October 2016 and consolidated in the U.S. District Court for the Eastern District of Texas. In addition to the underwriters, the defendants include certain former directors and officers of Adeptus Health Inc. (Adeptus), as well as Adeptus’ sponsor. As to the underwriters, the consolidated complaint, filed on November 21, 2017, relates to the $124 million June 2014 initial public offering, the $154 million May 2015 secondary equity offering, the $411 million July 2015 secondary equity offering, and the $175 million June 2016 secondary equity offering. GS&Co. underwrote 1.69 million shares of common stock in the June 2014 initial public offering representing an aggregate offering price of approximately $37 million, 962,378 shares of common stock in the May 2015 offering representing an aggregate offering price of approximately $61 million, 1.76 million shares of common stock in the July 2015 offering representing an aggregate offering price of approximately $185 million, and all the shares of common stock in the June 2016 offering representing an aggregate offering price of approximately $175 million. On April 19, 2017, Adeptus filed for Chapter 11 bankruptcy. On January 9, 2020, the court preliminarily approved a settlement among the parties. The firm has reserved the full amount of its proposed contribution to the settlement.
SunEdison, Inc.
GS&Co. is among the underwriters named as defendants in several putative class actions and individual actions filed beginning in March 2016 relating to the August 2015 public offering of $650 million of SunEdison, Inc. (SunEdison) convertible preferred stock. The defendants also include certain of SunEdison’s directors and officers. On April 21, 2016
, S
unEdison filed for Chapter 11 bankruptcy. The pending cases were transferred to the U.S. District Court for the Southern District of New York and on March 17, 2017, plaintiffs in the putative class action filed a consolidated amended complaint. GS&Co., as underwriter, sold
138,890
shares of SunEdison convertible preferred stock in the offering, representing an aggregate offering price of approximately $
139
 million. On April 10, 2018 and April 17, 2018, certain plaintiffs in the individual actions filed amended complaints. The defendants have reached a settlement with certain plaintiffs in the individual actions and a settlement of the class action, which the court approved on October 25, 2019. The firm has paid the full amount of its contribution to the settlement. Defendants moved to dismiss the remaining individual actions on December 18, 2019.
Valeant Pharmaceuticals International, Inc.
GS&Co. and Goldman Sachs Canada Inc. (GS Canada) are among the underwriters and initial purchasers named as defendants in a putative class action filed on March 2, 2016 in the Superior Court of Quebec, Canada. In addition to the underwriters and initial purchasers, the defendants include Valeant Pharmaceuticals International, Inc. (Valeant), certain directors and officers of Valeant and Valeant’s auditor. As to GS&Co. and GS Canada, the complaint relates to the June 2013 public offering of $2.3 billion of common stock, the June 2013 Rule 144A offering of $3.2 billion principal amount of senior notes, and the November 2013 Rule 144A offering of $900 million principal amount of senior notes. The complaint asserts claims under the Quebec Securities Act and the Civil Code of Quebec. On August 29, 2017, the court certified a class that includes only
non-U.S.
purchasers in the offerings. Defendants’ motion for leave to appeal the certification was denied on November 30, 2017.
GS&Co. and GS Canada, as sole underwriters, sold 5,334,897 shares of common stock in the June 2013 offering to
non-U.S.
purchasers representing an aggregate offering price of approximately $453 million and, as initial purchasers, had a proportional share of sales to
non-U.S.
purchasers of approximately CAD14.2 million in principal amount of senior notes in the June 2013 and November 2013 Rule 144A offerings.
   
87
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Snap Inc.
GS&Co. is among the underwriters named as defendants in putative securities class actions pending in California Superior Court, County of Los Angeles
,
and the U.S. District Court for the Central District of California beginning in May 2017, relating to Snap Inc.’s $3.91 billion March 2017 initial public offering. In addition to the underwriters, the defendants include Snap Inc. and certain of its officers and directors. GS&Co. underwrote 57,040,000 shares of common stock representing an aggregate offering price of approximately $970 million. The underwriter defendants, including GS&Co., were voluntarily dismissed from the district court action on September 18, 2018. In the district court action, defendants moved for summary judgment on December 19, 2019, following the court’s November 20, 2019 order approving plaintiffs’ motion for class certification. The state court actions have been stayed. On January 17, 2020, the parties reached a settlement in principle that would resolve all actions, subject to documentation and court approval.
Sea Limited.
GS Asia is among the underwriters named as defendants in a putative securities class action filed on November 1, 2018 in New York Supreme Court, County of New York, relating to Sea Limited’s $989 million October 2017 initial public offering of American depositary shares. In addition to the underwriters, the defendants include Sea Limited and certain of its officers and directors. GS Asia underwrote 28,026,721 American depositary shares representing an aggregate offering price of approximately $420 million. On January 25, 2019, the plaintiffs filed an amended complaint. Defendants moved to dismiss on March 26, 2019.
Altice USA, Inc.
GS&Co. is among the underwriters named as defendants in putative securities class actions pending in New York Supreme Court, County of Queens
,
and the U.S. District Court for the Eastern District of New York beginning in June 2018, relating to Altice USA, Inc.’s (Altice) $2.15 billion June 2017 initial public offering. In addition to the underwriters, the defendants include Altice and certain of its officers and directors. GS&Co. underwrote 12,280,042 shares of common stock representing an aggregate offering price of approximately $368 million. On May 10, 2019, plaintiffs in the district court filed an amended complaint, and on June 27, 2019, plaintiffs in the state court action filed a consolidated amended complaint. On July 23, 2019, defendants moved to dismiss the amended complaint in the state court action. On October 14, 2019, defendants moved to dismiss the complaint in the district court action.
Camping World Holdings, Inc.
GS&Co. is among the underwriters named as defendants in several putative securities class actions pending in the U.S. District Court for the Northern District of Illinois, New York Supreme Court, County of New York, and the Circuit Court of Cook County, Illinois, Chancery Division, beginning in December 2018. In addition to the underwriters, the defendants include Camping World Holdings, Inc. (Camping World) and certain of its officers and directors, as well as certain of its stockholders. As to the underwriters, the complaints relate to three offerings of Camping World common stock, a $261 million October 2016 initial public offering, a $303 million May 2017 offering and a $310 million October 2017 offering. GS&Co. underwrote 4,267,214 shares of common stock in the October 2016 initial public offering representing an aggregate offering price of approximately $94 million, 4,557,286 shares of common stock in the May 2017 offering representing an aggregate offering price of approximately $126 million and 3,525,348 shares of common stock in the October 2017 offering representing an aggregate offering price of approximately $143 million. GS&Co. and the other defendants moved to dismiss
the Illinois state court action on April 19, 2019 and the Illinois district court action on May 17, 2019. The Illinois state court action has been stayed pending resolution of the motions to dismiss in the Illinois district court action. On April 7, 2020, the Illinois district court preliminarily approved a settlement among the parties to the Illinois district court action, which would resolve this action without any contribution by GS&Co. On April 22, 2020, the New York state court granted in part and denied in part the underwriter defendants’ motion to dismiss with leave to amend.
Alnylam Pharmaceuticals, Inc.
GS&Co. is among the underwriters named as defendants in a putative securities class action filed on September 12, 2019 in New York Supreme Court, County of New York, relating to Alnylam Pharmaceuticals, Inc.’s (Alnylam) $805 million November 2017 public offering of common stock. In addition to the underwriters, the defendants include Alnylam and certain of its officers and directors. GS&Co. underwrote 2,576,000 shares of common stock representing an aggregate offering price of approximately $322 million. On December 20, 2019, defendants moved to dismiss the amended complaint filed on November 7, 2019.
   
Goldman Sachs March 2020 Form 10-Q
 
88
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Uber Technologies, Inc.
GS&Co. is among the underwriters named as defendants in several putative securities class actions filed beginning in September 2019 in California Superior Court, County of San Francisco and the U.S. District Court for the Northern District of California, relating to Uber Technologies, Inc.’s (Uber) $8.1 billion May 2019 initial public offering. In addition to the underwriters, the defendants include Uber and certain of its officers and directors. GS&Co. underwrote 35,864,408 shares of common stock representing an aggregate offering price of approximately $1.6 billion. On February 11, 2020, plaintiffs in the state court action filed a consolidated amended complaint. On March 3, 2020, plaintiffs in the district court action filed an amended complaint.
Venator Materials PLC.
GS&Co. is among the underwriters named as defendants in putative securities class actions in Texas District Court, Dallas County, New York Supreme Court, New York County, and the U.S. District Court for the Southern District of Texas, filed beginning in February 2019, relating to Venator Materials PLC’s (Venator) $522 million August 2017 initial public offering and $534 million December 2017 secondary equity offering. In addition to the underwriters, the defendants include Venator, certain of its officers and directors and certain of its shareholders. GS&Co. underwrote 6,351,347 shares of common stock in the August 2017 initial public offering representing an aggregate offering price of approximately $127 million and 5,625,768 shares of common stock in the December 2017 secondary equity offering representing an aggregate offering price of approximately $127 million. On January 21, 2020, the Texas Court of Appeals reversed the Texas District Court and dismissed the claims against the underwriter defendants, including GS&Co., in the Texas state court action for lack of personal jurisdiction. On February 18, 2020, defendants moved to dismiss the consolidated complaint in the federal action.
XP Inc.
GS&Co. is among the underwriters named as defendants in putative securities class actions pending in New York Supreme Court, County of New York, and the U.S. District Court for the Eastern District of York, filed beginning March 19, 2020, relating to XP Inc.’s (XP) $2.3 billion December 2019 initial public offering. In addition to the underwriters, the defendants include XP, certain of its officers and directors and certain of its shareholders. GS&Co. underwrote 19,326,218 shares of common stock in the December 2019 initial public offering representing an aggregate offering price of approximately $522 million.
Investment Management Services
Group Inc. and certain of its affiliates are parties to various civil litigation and arbitration proceedings and other disputes with clients relating to losses allegedly sustained as a result of the firm’s investment management services. These claims generally seek, among other things, restitution or other compensatory damages and, in some cases, punitive damages.
Securities Lending Antitrust Litigation
Group Inc. and GS&Co. are among the defendants named in a putative antitrust class action and three individual actions relating to securities lending practices filed in the U.S. District Court for the Southern District of New York beginning in August 2017. The complaints generally assert claims under federal and state antitrust law and state common law in connection with an alleged conspiracy among the defendants to preclude the development of electronic platforms for securities lending transactions. The individual complaints also assert claims for tortious interference with business relations and under state trade practices law and, in the second and third individual actions, unjust enrichment under state common law. The complaints seek declaratory and injunctive relief, as well as unspecified amounts of compensatory, treble, punitive and other damages. Group Inc. was voluntarily dismissed from the putative class action on January 26, 2018. Defendants’ motion to dismiss the class action complaint was denied on September 27, 2018. Defendants moved to dismiss the second individual action on December 21, 2018. Defendants’ motion to dismiss the first individual action was granted on August 7, 2019.
89
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Interest Rate Swap Antitrust Litigation
Group Inc., GS&Co., GSI, GS Bank USA and Goldman Sachs Financial Markets, L.P. (GSFM) are among the defendants named in a putative antitrust class action relating to the trading of interest rate swaps, filed in November 2015 and consolidated in the U.S. District Court for the Southern District of New York. The same Goldman Sachs entities also are among the defendants named in two antitrust actions relating to the trading of interest rate swaps, commenced in April 2016 and June 2018, respectively, in the U.S. District Court for the Southern District of New York by three operators of swap execution facilities and certain of their affiliates. These actions have been consolidated for pretrial proceedings. The complaints generally assert claims under federal antitrust law and state common law in connection with an alleged conspiracy among the defendants to preclude exchange trading of interest rate swaps. The complaints in the individual actions also assert claims under state antitrust law. The complaints seek declaratory and injunctive relief, as well as treble damages in an unspecified amount. Defendants moved to dismiss the class and the first individual action and the district court dismissed the state common law claims asserted by the plaintiffs in the first individual action and otherwise limited the state common law claim in the putative class action and the antitrust claims in both actions to the period from 2013 to 2016. On November 20, 2018, the court granted in part and denied in part the defendants’ motion to dismiss the second individual action, dismissing the state common law claims for unjust enrichment and tortious interference, but denying dismissal of the federal and state antitrust claims. On March 13, 2019, the court denied the plaintiffs’ motion in the putative class action to amend their complaint to add allegations related to 2008-2012 conduct, but granted the motion to add limited allegations from 2013-2016, which the plaintiffs added in a fourth consolidated amended complaint filed on March 22, 2019. The plaintiffs in the putative class action moved for class certification on March 7, 2019.
GSE Bonds Antitrust Litigation
GS&Co. is among the dealers named as defendants in numerous putative antitrust class actions relating to debt securities issued by Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Farm Credit Banks Funding Corporation and Federal Home Loan Banks (collectively, the GSEs), filed beginning in February 2019 and consolidated in the U.S. District Court for the Southern District of New York. The third consolidated amended complaint, filed on September 10, 2019, asserts claims under federal antitrust law in connection with an alleged conspiracy among the defendants to manipulate the secondary market for debt securities issued by the GSEs. The complaint seeks declaratory and injunctive relief, as well as treble damages in unspecified amounts. On December 12, 2019, the court preliminarily approved a settlement between the firm and class plaintiffs. The firm has reserved the full amount of its contribution to the settlement. Beginning in September 2019, the State of Louisiana and the City of Baton Rouge filed complaints in the U.S. District Court for the Middle District of Louisiana against the class defendants and a number of dealers alleging the same claims as in the class action. In January 2020, the State of Louisiana and City of Baton Rouge voluntarily dismissed their actions with prejudice against GS&Co. in favor of participating in the class settlement.
Variable Rate Demand Obligations Antitrust Litigation
GS&Co. is among the defendants named in a putative class action relating to variable rate demand obligations (VRDOs), filed beginning in February 2019 under separate complaints and consolidated in the U.S. District Court for the Southern District of New York. The consolidated amended complaint, filed on May 31, 2019, generally asserts claims under federal antitrust law and state common law in connection with an alleged conspiracy among the defendants to manipulate the market for VRDOs. The complaint seeks declaratory and injunctive relief, as well as unspecified amounts of compensatory, treble and other damages. Defendants moved to dismiss on July 30, 2019.
Goldman Sachs March 2020 Form 10-Q
 
90
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Commodities-Related Litigation
GSI is among the defendants named in putative class actions relating to trading in platinum and palladium, filed beginning on November 25, 2014 and most recently amended on May 15, 2017, in the U.S. District Court for the Southern District of New York. The amended complaint generally alleges that the defendants violated federal antitrust laws and the Commodity Exchange Act in connection with an alleged conspiracy to manipulate a benchmark for physical platinum and palladium prices and seek declaratory and injunctive relief, as well as treble damages in an unspecified amount. On March 29, 2020, the court granted the defendants’ motions to dismiss and for reconsideration, resulting in the dismissal of all claims. Plaintiffs have been granted leave to replead.
GS&Co., GSI, J. Aron & Company and Metro, a previously consolidated subsidiary of Group Inc. that was sold in the fourth quarter of 2014, are among the defendants in a number of putative class and individual actions filed beginning on August 1, 2013 and consolidated in the U.S. District Court for the Southern District of New York. The complaints generally allege violations of federal antitrust laws and state laws in connection with the storage of aluminum and aluminum trading. The complaints seek declaratory, injunctive and other equitable relief, as well as unspecified monetary damages, including treble damages. In December 2016, the district court granted defendants’ motions to dismiss as to all remaining claims. Certain plaintiffs subsequently appealed in December 2016. On August 27, 2019, the Second Circuit vacated the district court’s dismissals and remanded the case to district court for further proceedings.
Group Inc., GS&Co., GSI, J. Aron & Company and Metro are among the defendants in an action filed on February 27, 2020 in the High Court of Justice, Business and Property Courts of England and Wales. The particulars of claim seeks unspecified compensatory and exemplary damages based on alleged violations of U.K. and E.U. competition laws in connection with the storage and trading of aluminum.
U.S. Treasury Securities Litigation
GS&Co. is among the primary dealers named as defendants in several putative class actions relating to the market for U.S. Treasury securities, filed beginning in July 2015 and consolidated in the U.S. District Court for the Southern District of New York. GS&Co. is also among the primary dealers named as defendants in a similar individual action filed in the U.S. District Court for the Southern District of New York on August 25, 2017. The consolidated class action complaint, filed on December 29, 2017, generally alleges that the defendants violated antitrust laws in connection with an alleged conspiracy to manipulate the when-issued market and auctions for U.S. Treasury securities and that certain defendants, including GS&Co., colluded to preclude trading of U.S. Treasury securities on electronic trading platforms in order to impede competition in the bidding process. The individual action alleges a similar conspiracy regarding manipulation of the when-issued market and auctions, as well as related futures and options in violation of the Commodity Exchange Act. The complaints seek declaratory and injunctive relief, treble damages in an unspecified amount and restitution. Defendants moved to dismiss on February 23, 2018.
Corporate Bonds Antitrust Litigation
Group Inc. and GS&Co. are among the dealers named as defendants in a putative class action relating to the secondary market for odd-lot corporate bonds, filed on April 21, 2020 in the U.S. District Court for the Southern District of New York. The complaint asserts claims under federal antitrust law in connection with alleged anti-competitive conduct by the defendants in the secondary market for odd-lots of corporate bonds, and seeks declaratory and injunctive relief, as well as unspecified monetary damages, including treble and punitive damages and restitution.
Employment-Related Matters
On September 15, 2010, a putative class action was filed in the U.S. District Court for the Southern District of New York by three female former employees. The complaint, as subsequently amended, alleges that Group Inc. and GS&Co. have systematically discriminated against female employees in respect of compensation, promotion and performance evaluations. The complaint alleges a class consisting of all female employees employed at specified levels in specified areas by Group Inc. and GS&Co. since July 2002, and asserts claims under federal and New York City discrimination laws. The complaint seeks class action status, injunctive relief and unspecified amounts of compensatory, punitive and other damages.
   
91
 
Goldman Sachs March 2020 Form 10-Q
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
On March 30, 2018, the district court certified a damages class as to the plaintiffs’ disparate impact and treatment claims. On September 4, 2018, the Second Circuit Court of Appeals denied defendants’ petition for interlocutory review of the district court’s class certification decision and subsequently denied defendants’ petition for rehearing. On September 27, 2018, plaintiffs advised the district court that they would not seek to certify a class for injunctive and declaratory relief. On March 26, 2020, the Magistrate Judge in the district court granted in part a motion to compel arbitration as to class members who are parties to certain agreements with Group Inc. and/or GS&Co. in which they agreed to arbitrate employment-related disputes. On April 16, 2020, plaintiffs submitted objections to the Magistrate Judge’s order and defendants submitted conditional objections in the event that the district judge overturns any portion of the Magistrate Judge’s order.
Regulatory Investigations and Reviews and Related Litigation
Group Inc. and certain of its affiliates are subject to a number of other investigations and reviews by, and in some cases have received subpoenas and requests for documents and information from, various governmental and regulatory bodies and self-regulatory organizations and litigation and shareholder requests relating to various matters relating to the firm’s businesses and operations, including:
 
•
The public offering process;
 
 
 
•
The firm’s investment management and financial advisory services;
 
 
 
•
Conflicts of interest;
 
•
Research practices, including research independence and interactions between research analysts and other firm personnel, including investment banking personnel, as well as third parties;
 
 
 
 
•
Transactions involving government-related financings and other matters, municipal securities, including wall-cross procedures and conflict of interest disclosure with respect to state and municipal clients, the trading and structuring of municipal derivative instruments in connection with municipal offerings, political contribution rules, municipal advisory services and the possible impact of credit default swap transactions on municipal issuers;
 
 
 
•
Credit cards, unsecured installment and residential mortgage lending and servicing, and compliance with related consumer laws;
 
 
 
•
The offering, auction, sales, trading and clearance of corporate and government securities, currencies, commodities and other financial products and related sales and other communications and activities, as well as the firm’s supervision and controls relating to such activities, including compliance with applicable short sale rules, algorithmic, high-frequency and quantitative trading, the firm’s U.S. alternative trading system (dark pool), futures trading, options trading, when-issued trading, transaction reporting, technology systems and controls, securities lending practices, trading and clearance of credit derivative instruments and interest rate swaps, commodities activities and metals storage, private placement practices, allocations of and trading in securities, and trading activities and communications in connection with the establishment of benchmark rates, such as currency rates;
 
 
 
•
Compliance with the FCPA;
 
 
 
•
The firm’s hiring and compensation practices;
 
 
 
•
The firm’s system of risk management and controls; and
 
 
 
•
Insider trading, the potential misuse and dissemination of material nonpublic information regarding corporate and governmental developments and the effectiveness of the firm’s insider trading controls and information barriers.
 
 
The firm is cooperating with all such governmental and regulatory investigations and reviews.
   
Goldman Sachs March 2020 Form 10-Q
 
92
 
 
Table of Contents
Report of Independent Registered Public Accounting Firm
        
To
the Board of Directors and the Shareholders of The Goldman Sachs Group, Inc.:
Results of Review of Interim Financial Statements
We have reviewed the accompanying consolidated balance sheet of The Goldman Sachs Group, Inc. and its subsidiaries (the Company) as of March 31, 2020, the related consolidated statements of earnings, comprehensive income, changes in shareholders’ equity and cash flows for the three month periods ended March 31, 2020 and 2019, including the related notes (collectively referred to as the “interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2019, and the related consolidated statements of earnings, comprehensive income, changes in shareholders’ equity and cash flows for the year then ended (not presented herein), and in our report dated February 20, 2020, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance
sheet as of December 31, 2019 is fairly stated in all material respects in relation to the consolidated balance sheet from which it has been derived.
Basis for Review Results
These interim financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
/s/ PricewaterhouseCoopers LLP
New York, New York
April 30, 2020
   
93
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Statistical Disclosures
Distribution of Assets, Liabilities and Shareholders’ Equity
        
The tables below present information about average balances, interest and average interest rates.
 
         
    
 
Average Balance for
the Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Assets
 
 
 
  
 
U.S.
 
 
$  
 
  41,249
 
  
$  52,559
 
Non-U.S.
 
 
54,102
 
  
51,998
 
Total deposits with banks
 
 
95,351
 
  
104,557
 
U.S.
 
 
137,105
 
  
171,446
 
Non-U.S.
 
 
123,218
 
  
131,874
 
Total collateralized agreements
 
 
260,323
 
  
303,320
 
U.S.
 
 
195,854
 
  
132,752
 
Non-U.S.
 
 
117,488
 
  
106,227
 
Total trading assets
 
 
313,342
 
  
238,979
 
U.S.
 
 
43,979
 
  
35,102
 
Non-U.S.
 
 
17,435
 
  
13,581
 
Total investments
 
 
61,414
 
  
48,683
 
U.S.
 
 
88,534
 
  
85,073
 
Non-U.S.
 
 
17,066
 
  
10,534
 
Total loans
 
 
105,600
 
  
95,607
 
U.S.
 
 
50,888
 
  
39,685
 
Non-U.S.
 
 
43,570
 
  
33,832
 
Total other
 interest-earning
 assets
 
 
94,458
 
  
73,517
 
Total interest-earning assets
 
 
930,488
 
  
864,663
 
Cash and due from banks
 
 
12,232
 
  
9,222
 
Other
non-interest-earning
assets
 
 
105,947
 
  
80,581
 
Total assets
 
 
$1,048,667
 
  
$954,466
 
Liabilities
 
 
 
  
 
U.S.
 
 
$   153,771
 
  
$126,643
 
Non-U.S.
 
 
45,418
 
  
32,572
 
Total interest-bearing deposits
 
 
199,189
 
  
159,215
 
U.S.
 
 
88,223
 
  
52,995
 
Non-U.S.
 
 
36,884
 
  
36,312
 
Total collateralized financings
 
 
125,107
 
  
89,307
 
U.S.
 
 
27,626
 
  
32,475
 
Non-U.S.
 
 
47,948
 
  
47,087
 
Total trading liabilities
 
 
75,574
 
  
79,562
 
U.S.
 
 
34,241
 
  
32,877
 
Non-U.S.
 
 
18,399
 
  
16,000
 
Total short-term borrowings
 
 
52,640
 
  
48,877
 
U.S.
 
 
197,063
 
  
208,876
 
Non-U.S.
 
 
27,294
 
  
29,114
 
Total long-term borrowings
 
 
224,357
 
  
237,990
 
U.S.
 
 
128,285
 
  
128,337
 
Non-U.S.
 
 
65,702
 
  
54,984
 
Total other
 interest-bearing
 liabilities
 
 
193,987
 
  
183,321
 
Total interest-bearing liabilities
 
 
870,854
 
  
798,272
 
Non-interest-bearing
deposits
 
 
6,325
 
  
4,933
 
Other
 non-interest-bearing
 liabilities
 
 
81,022
 
  
61,633
 
Total liabilities
 
 
958,201
 
  
864,838
 
Shareholders’ equity
 
 
 
  
 
Preferred stock
 
 
11,203
 
  
11,203
 
Common stock
 
 
79,263
 
  
78,425
 
Total shareholders’ equity
 
 
90,466
 
  
89,628
 
Total liabilities and shareholders’ equity
 
 
$1,048,667
 
  
$954,466
 
Percentage of
 interest-earning
 assets and interest-bearing liabilities attributable to
 non-U.S.
 operations
 
Assets
 
 
40.07%
 
  
40.25%
 
Liabilities
 
 
27.75%
 
  
27.07%
 
 
         
    
 
Interest for the
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Assets
 
 
 
  
 
U.S.
 
 
$  
 
151
 
  
$   296
 
Non-U.S.
 
 
54
 
  
81
 
Total deposits with banks
 
 
205
 
  
377
 
U.S.
 
 
440
 
  
1,175
 
Non-U.S.
 
 
94
 
  
129
 
Total collateralized agreements
 
 
534
 
  
1,304
 
U.S.
 
 
1,067
 
  
869
 
Non-U.S.
 
 
506
 
  
519
 
Total trading assets
 
 
1,573
 
  
1,388
 
U.S.
 
 
334
 
  
290
 
Non-U.S.
 
 
137
 
  
105
 
Total investments
 
 
471
 
  
395
 
U.S.
 
 
1,123
 
  
1,167
 
Non-U.S.
 
 
193
 
  
152
 
Total loans
 
 
1,316
 
  
1,319
 
U.S.
 
 
453
 
  
562
 
Non-U.S.
 
 
198
 
  
252
 
Total other
 interest-earning
 assets
 
 
651
 
  
814
 
Total interest-earning assets
 
 
$4,750
 
  
$5,597
 
Liabilities
 
 
 
  
 
U.S.
 
 
$   685
 
  
$   758
 
Non-U.S.
 
 
133
 
  
99
 
Total interest-bearing deposits
 
 
818
 
  
857
 
U.S.
 
 
400
 
  
591
 
Non-U.S.
 
 
48
 
  
78
 
Total collateralized financings
 
 
448
 
  
669
 
U.S.
 
 
105
 
  
158
 
Non-U.S.
 
 
209
 
  
208
 
Total trading liabilities
 
 
314
 
  
366
 
U.S.
 
 
135
 
  
136
 
Non-U.S.
 
 
6
 
  
6
 
Total short-term borrowings
 
 
141
 
  
142
 
U.S.
 
 
1,074
 
  
1,369
 
Non-U.S.
 
 
31
 
  
15
 
Total long-term borrowings
 
 
 
1,105
 
  
1,384
 
U.S.
 
 
452
 
  
1,237
 
Non-U.S.
 
 
159
 
  
(276
)
Total other
 interest-bearing
 liabilities
 
 
611
 
  
961
 
Total interest-bearing liabilities
 
 
$3,437
 
  
$4,379
 
Net interest income
 
 
 
  
 
U.S.
 
 
$   717
 
  
$   110
 
Non-U.S.
 
 
596
 
  
1,108
 
Net interest income
 
 
$1,313
 
  
$1,218
 
 
   
Goldman Sachs March 2020 Form 10-Q
 
94
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Statistical Disclosures
         
    
 
Annualized
Average Rate for
the Three Months
Ended March
 
         
 
 
2020
 
  
2019
 
Assets
 
 
 
  
 
U.S.
 
 
1.47%
 
  
2.34%
 
Non-U.S.
 
 
0.40%
 
  
0.65%
 
Total deposits with banks
 
 
0.86%
 
  
1.50%
 
U.S.
 
 
1.29%
 
  
2.84%
 
Non-U.S.
 
 
0.31%
 
  
0.41%
 
Total collateralized agreements
 
 
0.83%
 
  
1.78%
 
U.S.
 
 
2.19%
 
  
2.72%
 
Non-U.S.
 
 
1.73%
 
  
2.03%
 
Total trading assets
 
 
2.02%
 
  
2.41%
 
U.S.
 
 
3.05%
 
  
3.43%
 
Non-U.S.
 
 
3.16%
 
  
3.21%
 
Total investments
 
 
3.08%
 
  
3.37%
 
U.S.
 
 
5.10%
 
  
5.69%
 
Non-U.S.
 
 
4.55%
 
  
5.98%
 
Total loans
 
 
5.01%
 
  
5.72%
 
U.S.
 
 
3.58%
 
  
5.87%
 
Non-U.S.
 
 
1.83%
 
  
3.09%
 
Total other interest-earning assets
 
 
 
2.77%
 
  
4.59%
 
Total interest-earning assets
 
 
2.05%
 
  
2.68%
 
Liabilities
 
 
 
  
 
U.S.
 
 
1.79%
 
  
2.48%
 
Non-U.S.
 
 
1.18%
 
  
1.26%
 
Total interest-bearing deposits
 
 
1.65%
 
  
2.23%
 
U.S.
 
 
1.82%
 
  
4.63%
 
Non-U.S.
 
 
0.52%
 
  
0.89%
 
Total collateralized financings
 
 
1.44%
 
  
3.11%
 
U.S.
 
 
1.53%
 
  
2.02%
 
Non-U.S.
 
 
1.75%
 
  
1.83%
 
Total trading liabilities
 
 
1.67%
 
  
1.91%
 
U.S.
 
 
1.59%
 
  
1.72%
 
Non-U.S.
 
 
0.13%
 
  
0.16%
 
Total short-term borrowings
 
 
 
1.08%
 
  
1.21%
 
U.S.
 
 
2.19%
 
  
2.72%
 
Non-U.S.
 
 
0.46%
 
  
0.21%
 
Total long-term borrowings
 
 
 
1.98%
 
  
2.41%
 
U.S.
 
 
1.42%
 
  
4.00%
 
Non-U.S.
 
 
0.97%
 
  
(2.08)%
 
Total other interest-bearing liabilities
 
 
 
1.27%
 
  
2.17%
 
Total interest-bearing liabilities
 
 
1.59%
 
  
2.28%
 
Interest rate spread
 
 
0.46%
 
  
0.40%
 
U.S.
 
 
0.52%
 
  
0.09%
 
Non-U.S.
 
 
0.64%
 
  
1.32%
 
Net yield on interest-earning assets
 
 
0.57%
 
  
0.58%
 
 
In the tables above:
 
•
Assets, liabilities and interest are classified as U.S. and
non-U.S.
based on the location of the legal entity in which the assets and liabilities are held.
 
 
•
Derivative instruments and commodities are included in other
non-interest-earning
assets and other
non-interest-
bearing liabilities.
 
 
•
Total other interest-earning assets primarily consists of receivables from customers and counterparties.
 
 
•
Collateralized financings consists of securities sold under agreements to repurchase and securities loaned.
 
 
•
Substantially all of the total other interest-bearing liabilities consists of payables to customers and counterparties.
 
 
•
Interest rates for borrowings include the effects of interest rate swaps accounted for as hedges.
 
 
•
Total loans exclude loans held for sale that are accounted for at the lower of cost or fair value. Such loans are included within other interest-earning assets.
 
 
•
Total short- and long-term borrowings include both secured and unsecured borrowings.
 
   
95
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
     
Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
 
 
Introduction
The Goldman Sachs Group, Inc. (Group Inc. or parent company), a Delaware corporation, together with its consolidated subsidiaries, is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, we are headquartered in New York and maintain offices in all major financial centers around the world. We report our activities in four business segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management. See “Results of Operations” for further information about our business segments.
When we use the terms “we,” “us” and “our,” we mean Group Inc. and its consolidated subsidiaries. When we use the term “our subsidiaries,” we mean the consolidated subsidiaries of Group Inc.
This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our Annual Report on Form
 10-K
for the year ended December 31, 2019. References to “the 2019 Form
 10-K”
are to our Annual Report on Form
 10-K
for the year ended December 31, 2019. References to “this Form
 10-Q”
are to our Quarterly Report on Form
 10-Q
for the quarterly period ended March 31, 2020. All references to “the consolidated financial statements” or “Statistical Disclosures” are to Part I, Item 1 of this Form
 10-Q.
The consolidated financial statements are unaudited. All references to March 2020 and March 2019 refer to our periods ended, or the dates, as the context requires, March 31, 2020 and March 31, 2019, respectively. All references to December 2019 refer to the date December 31, 2019. Any reference to a future year refers to a year ending on December 31 of that year. Beginning in the fourth quarter of 2019, we changed our business segments and balance sheet presentation to better reflect the nature of our activities. Reclassifications have been made to previously reported amounts to conform to the current presentation. See Note 2 to the consolidated financial statements in Part II, Item 8 of the 2019 Form
 10-K
for further information.
Executive Overview
In response to the global outbreak of the coronavirus
(COVID-19)
pandemic, we are harnessing our resources, experience and network to help where we can, working with public and private clients to partner on initiatives with a focus on community assistance, economic support for businesses, and serving our clients and customers. Through the first quarter of 2020, we have announced a number of important initiatives to support our employees, clients and the broader public during
this crisis, reinforcing our core values of partnership, client service, integrity and excellence:
Employees and Vendors
•
Activated our global Business Continuity Planning (BCP) strategy, with approximately 98% of global employees working remotely.
 
 
•
Extended 10 days of family leave to our people globally to care for family members due to
COVID-19
-related illness or childcare needs.
 
 
•
Introduced telemedicine benefit to employees and covered dependents and waived all costs for 2020.
 
 
•
Provided access to global patient advocacy teams to help employees and their families gain access to appropriate care for
COVID-19.
 
 
•
Partnered with our vendors to ensure that workers dedicated to us continue to receive their full pay and benefits, even if their shifts are temporarily reduced or eliminated.
 
 
•
Launched virtual volunteer opportunities for our people to support their communities remotely.
 
 
•
Honoring the full financial commitment to our 2,800 summer interns who will have a truncated program.
 
   
Goldman Sachs March 2020 Form 10-Q
 
96
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Clients
•
Announced a
COVID-19
Customer Assistance Program, giving consumers the flexibility to defer a Marcus loan or Apple Card payment for up to two months at no cost and access funds in Marcus certificates of deposit early with no penalty.
 
 
•
Leveraging our digital banking model to provide uninterrupted customer service, including rapid response times through virtual call centers.
 
 
•
Continuing to provide savings products with attractive interest rates.
 
 
•
Led more than $15 billion of “Fight
COVID-19”
bonds.
 
 
•
Funded $19 billion of loans to corporate clients.
 
 
•
Bookrunner on more than $200 billion of total investment-grade issuance during the first quarter of 2020.
 
 
•
Working in partnership with central banks, governments and regulators to support financial system.
 
Communities
•
Announced an approximate $550 million commitment to
COVID-19
relief efforts through mid-April 2020, including (i) $500 million of emergency loan capital for underserved small businesses through Community Development Financial Institutions (CDFIs) and other mission-driven lenders across the U.S.; (ii) $25 million in grants to CDFIs and mission-driven lending partners to enable them to hire necessary staff and set up additional operations; (iii) $30 million
COVID-19
relief effort; and (iv) city/state-specific
COVID-19
public-private partnerships in New York, Texas, Ohio, Rhode Island, Chicago and Baltimore.
 
 
•
Launched a U.S. Small Business Resource Center and emergency coaching sessions to 10,000 Small Businesses and 10,000 Women graduates.
 
 
•
Donated over 2.5 million surgical masks and 700,000 N95 masks across the U.S. and Europe.
 
 
•
Working with the National Health Service to deliver technical and data support related to the spread of
COVID-19.
 
During the first quarter of 2020, we successfully executed on our BCP strategy amid the
COVID-19
pandemic, providing clients with advice, execution and liquidity. As for our financial performance, we generated net earnings of $1.21 billion for the first quarter of 2020, a decrease of 46%, compared with $2.25 billion for the first quarter of 2019. Diluted earnings per common share was $3.11 for the first quarter of 2020, a decrease of 46%, compared with $5.71 for the first quarter of 2019. Annualized return on average common shareholders’ equity (ROE) was 5.7% for the first quarter of 2020, compared with 11.1% for the first quarter of 2019. Book value per common share was $228.21 as of March 2020, 4.4% higher compared with December 2019.
Net revenues were $8.74 billion for the first quarter of 2020, essentially unchanged compared with the first quarter of 2019. Net revenues in Asset Management were significantly lower, due to significant net losses in Lending and debt investments and net losses in Equity investments, reflecting the impact of macroeconomic uncertainty and the challenging operating environment on asset prices. However, fees earned from our institutional and third-party distribution asset management clients were higher compared with the first quarter of 2019. The decrease in Asset Management revenues was largely offset by significantly higher net revenues in both Fixed Income, Currency and Commodities (FICC) and Equities within Global Markets, driven by strong activity as we extended balance sheet and liquidity to clients during volatile market conditions. In addition, net revenues were significantly higher in Investment Banking, reflecting gains on hedges related to our relationship lending activities, and in Consumer & Wealth Management, reflecting strength in both Consumer banking and Wealth management as we continued to advise our clients and accelerated growth in consumer deposits.
Provision for credit losses was $937 million for the first quarter of 2020, compared with $224 million for the first quarter of 2019, reflecting the challenging economic environment, loan growth and the impact of accounting for credit losses under the Current Expected Credit Losses (CECL) standard. See Note 3 to the consolidated financial statements for further information about ASU No.
 2016-13,
“Financial Instruments — Credit Losses (Topic 326) — Measurement of Credit Losses on Financial Instruments.”
Operating expenses were $6.46 billion for the first quarter of 2020, 10% higher than the first quarter of 2019, primarily due to significantly higher brokerage, clearing, exchange and distribution fees, net provisions for litigation and regulatory proceedings, and expenses related to consolidated investments. Our efficiency ratio (total operating expenses divided by total net revenues) for the first quarter of 2020 was 73.9%, compared with 66.6% for the first quarter of 2019.
We returned $2.38 billion of capital to common shareholders during the first quarter of 2020, including $1.93 billion of common share repurchases and $449 million of common stock dividends. As of March 2020, our Common Equity Tier 1 (CET1) capital ratio as calculated in accordance with the Advanced Capital Rules was 12.3% and as calculated in accordance with the Standardized Capital Rules was 12.5%. See Note 20 to the consolidated financial statements for further information about our capital ratios.
   
97
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Business Environment
The beginning of the first quarter of 2020 was characterized by favorable market conditions, reflecting continued economic growth and strong consumer sentiment. However, in March, the spread of
COVID-19
across the globe and the dramatic measures taken to contain it, including the temporary closures of
non-essential
businesses and
stay-at-home
requirements, caused a sharp contraction in global economic activity, high levels of volatility across most financial assets and global markets, an unprecedented decline in global equity prices, and a significant widening of credit spreads. Global central banks responded quickly with accommodative monetary policy by reducing policy interest rates and increasing large scale asset purchases, and the establishment of a number of facilities to support the functioning of markets and to provide liquidity to the market. In addition, governments globally intervened with fiscal policy to mitigate the impact, including the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the U.S., which aimed to provide economic relief to businesses and individuals.
The beginning of the second quarter of 2020 continued to be impacted by the
COVID-19
pandemic, reflecting continued declines in recent economic indicators, particularly in advanced economies, and a historic increase in initial jobless claims in the U.S. To alleviate the economic impact, global central banks continued their quantitative easing, while signaling that they would do more if needed, and the U.S. government approved additional fiscal measures to support small businesses and individuals. This intervention helped equity prices recover and credit spreads tighten
moderately compared
with the end of the first quarter of 2020. However, the pace of industry-wide announced mergers and acquisitions activity has slowed, volatility in the equity markets, although declining, has remained elevated, and commodities markets experienced significant turmoil, as oil prices declined significantly due to an unprecedented surplus in net supply. See “Results of Operations — Segment Operating Results” for further information about the operating environment for each of our business segments.
Critical Accounting Policies
Fair Value
Fair Value Hierarchy.
Trading assets and liabilities, certain investments and loans, and certain other financial assets and liabilities, are included in our consolidated balance sheets at fair value (i.e.,
marked-to-market),
with related gains or losses generally recognized in our consolidated statements of earnings. The use of fair value to measure financial instruments is fundamental to our risk management practices and is our most critical accounting policy.
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We measure certain financial assets and liabilities as a portfolio (i.e., based on its net exposure to market and/or credit risks). In determining fair value, the hierarchy under U.S. generally accepted accounting principles (U.S. GAAP) gives (i) the highest priority to unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities (level 1 inputs), (ii) the next priority to inputs other than level 1 inputs that are observable, either directly or indirectly (level 2 inputs), and (iii) the lowest priority to inputs that cannot be observed in market activity (level 3 inputs). In evaluating the significance of a valuation input, we consider, among other factors, a portfolio’s net risk exposure to that input. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to their fair value measurement.
The fair values for substantially all of our financial assets and liabilities are based on observable prices and inputs and are classified in levels 1 and 2 of the fair value hierarchy. Certain level 2 and level 3 financial assets and liabilities may require appropriate valuation adjustments that a market participant would require to arrive at fair value for factors, such as counterparty and our credit quality, funding risk, transfer restrictions, liquidity and bid/offer spreads.
Instruments classified in level 3 of the fair value hierarchy are those which require one or more significant inputs that are not observable. Level 3 financial assets represented 2.8% as of March 2020 and 2.3% as of December 2019, of our total assets. See Notes 4 through 10 to the consolidated financial statements for further information about level 3 financial assets, including changes in level 3 financial assets and related fair value measurements. Absent evidence to the contrary, instruments classified in level 3 of the fair value hierarchy are initially valued at transaction price, which is considered to be the best initial estimate of fair value. Subsequent to the transaction date, we use other methodologies to determine fair value, which vary based on the type of instrument. Estimating the fair value of level 3 financial instruments requires judgments to be made. These judgments include:
 
•
Determining the appropriate valuation methodology and/or model for each type of level 3 financial instrument;
 
 
 
•
Determining model inputs based on an evaluation of all relevant empirical market data, including prices evidenced by market transactions, interest rates, credit spreads, volatilities and correlations; and
 
 
 
•
Determining appropriate valuation adjustments, including those related to illiquidity or counterparty credit quality.
 
 
Regardless of the methodology, valuation inputs and assumptions are only changed when corroborated by substantive evidence.
   
Goldman Sachs March 2020 Form 10-Q
 
98
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Controls Over Valuation of Financial Instruments.
Market makers and investment professionals in our revenue-producing units are responsible for pricing our financial instruments. Our control infrastructure is independent of the revenue-producing units and is fundamental to ensuring that all of our financial instruments are appropriately valued at market-clearing levels. In the event that there is a difference of opinion in situations where estimating the fair value of financial instruments requires judgment (e.g., calibration to market comparables or trade comparison, as described below), the final valuation decision is made by senior managers in independent risk oversight and control functions. This independent price verification is critical to ensuring that our financial instruments are properly valued.
Price Verification.
All financial instruments at fair value classified in levels 1, 2 and 3 of the fair value hierarchy are subject to our independent price verification process. The objective of price verification is to have an informed and independent opinion with regard to the valuation of financial instruments under review. Instruments that have one or more significant inputs which cannot be corroborated by external market data are classified in level 3 of the fair value hierarchy. Price verification strategies utilized by our independent risk oversight and control functions include:
 
•
Trade Comparison.
Analysis of trade data (both internal and external, where available) is used to determine the most relevant pricing inputs and valuations.
 
 
 
•
External Price Comparison.
Valuations and prices are compared to pricing data obtained from third parties (e.g., brokers or dealers, IHS Markit, Bloomberg, IDC, TRACE). Data obtained from various sources is compared to ensure consistency and validity. When broker or dealer quotations or third-party pricing vendors are used for valuation or price verification, greater priority is generally given to executable quotations.
 
 
 
•
Calibration to Market Comparables.
Market-based transactions are used to corroborate the valuation of positions with similar characteristics, risks and components.
 
 
 
•
Relative Value Analyses.
Market-based transactions are analyzed to determine the similarity, measured in terms of risk, liquidity and return, of one instrument relative to another or, for a given instrument, of one maturity relative to another.
 
 
 
•
Collateral Analyses.
Margin calls on derivatives are analyzed to determine implied values, which are used to corroborate our valuations.
 
 
 
•
Execution of Trades.
Where appropriate, market-making desks are instructed to execute trades in order to provide evidence of market-clearing levels.
 
 
 
•
Backtesting.
Valuations are corroborated by comparison to values realized upon sales.
 
 
See Note 4 to the consolidated financial statements for further information about fair value measurements.
Review of Net Revenues.
Independent risk oversight and control functions ensure adherence to our pricing policy through a combination of daily procedures, including the explanation and attribution of net revenues based on the underlying factors. Through this process, we independently validate net revenues, identify and resolve potential fair value or trade booking issues on a timely basis and seek to ensure that risks are being properly categorized and quantified.
Review of Valuation Models.
Our independent model risk management group (Model Risk), consisting of quantitative professionals who are separate from model developers, performs an independent model review and validation process of our valuation models. New or changed models are reviewed and approved prior to implementation. Models are reviewed annually to assess the impact of any changes in the product or market and any market developments in pricing theories. See “Risk Management —
Model Risk Management” for further information about the review and validation of our valuation models.
Allowance for Credit Losses
We estimate and record an allowance for credit losses related to our loans held for investment and accounted for at amortized cost. We adopted ASU No.
 2016-13
in January 2020, which replaced the probable incurred credit loss model for recognizing credit losses with the current expected credit losses (CECL) model. As a result, our allowance for credit losses effective January 2020, reflects our estimate of credit losses over the remaining expected life of such loans and also takes into account forecasts of future economic conditions. See Note 3 to the consolidated financial statements for further information about adoption of ASU No.
 2016-13.
To determine the allowance for credit losses, we classify our loans into wholesale and retail portfolios. These portfolios represent the level at which we have developed and documented our methodology to determine the allowance for credit losses. The allowance for credit losses is measured on a collective basis for loans that exhibit similar risk characteristics using a modeled approach and asset-specific basis for loans that do not share similar risk characteristics. The determination of allowance for credit losses entails significant judgment on various risk factors, including industry default and loss data, current macroeconomic indicators, borrower’s capacity to meet its financial obligations, borrower’s country of risk, loan seniority and collateral type. In addition, for loans backed by real estate, risk factors include
loan-to-value
ratio, debt service ratio and home price index. Risk factors for installment and credit card loans include Fair Isaac Corporation (FICO) credit scores and delinquency status.
   
99
 
Goldman Sachs March 2020 Form 10-Q
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Our estimate of credit losses entails judgment about collectability at the reporting dates, and there are uncertainties inherent in those judgments. While we use the best information available to determine this estimate, future adjustments to the allowance may be necessary based on, among other things, changes in the economic environment or variances between actual results and the original assumptions used. Loans are charged off against the allowance for loan losses when deemed to be uncollectible.
We also record an allowance for losses on lending commitments which are held for investment and accounted for at amortized cost. Such allowance is determined using the same methodology as the allowance for loan losses, while also taking into consideration the probability of drawdowns or funding, and is included in other liabilities. See Note 9 to the consolidated financial statements for further information about the allowance for credit losses.
Use of Estimates
U.S. GAAP requires us to make certain estimates and assumptions. In addition to the estimates we make in connection with fair value measurements and the allowance for credit losses on loans and lending commitments held for investment and accounted for at amortized cost, the use of estimates and assumptions is also important in determining discretionary compensation accruals, the accounting for goodwill and identifiable intangible assets, provisions for losses that may arise from litigation and regulatory proceedings (including governmental investigations), and provisions for losses that may arise from tax audits.
A substantial portion of our compensation and benefits represents discretionary compensation, which is finalized at
year-end.
We believe the most appropriate way to allocate estimated
year-end
discretionary compensation among interim periods is in proportion to the net revenues earned in such periods. In addition to the level of net revenues, our overall compensation expense in any given year is also influenced by, among other factors, overall financial performance, prevailing labor markets, business mix, the structure of our share-based compensation programs and the external environment.
Goodwill is assessed for impairment annually in the fourth quarter or more frequently if events occur or circumstances change that indicate an impairment may exist. When assessing goodwill for impairment, first, a qualitative assessment can be made to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its estimated carrying value. If the results of the qualitative assessment are not conclusive, a quantitative goodwill test is performed. Alternatively, a quantitative goodwill test can be performed without performing a qualitative assessment.
Estimating the fair value of our reporting units requires judgment. Critical inputs to the fair value estimates include projected earnings and allocated equity. There is inherent uncertainty in the projected earnings. The estimated carrying value of each reporting unit reflects an allocation of total shareholders’ equity and represents the estimated amount of total shareholders’ equity required to support the activities of the reporting unit under currently applicable regulatory capital requirements. See Note 12 to the consolidated financial statements for further information about goodwill. If we experience a prolonged or severe period of weakness in the business environment, financial markets, our performance or our common stock price, or additional increases in capital requirements, our goodwill could be impaired in the future.
Identifiable intangible assets are tested for impairment whenever events or changes in circumstances suggest that an asset’s or asset group’s carrying value may not be fully recoverable. Judgment is required to evaluate whether indications of potential impairment have occurred, and to test intangible assets for impairment, if required. An impairment is recognized if the total of the estimated undiscounted cash flows relating to the asset or asset group is less than the corresponding carrying value. See Note 12 to the consolidated financial statements for further information about identifiable intangible assets.
We also estimate and provide for potential losses that may arise out of litigation and regulatory proceedings to the extent that such losses are probable and can be reasonably estimated. In addition, we estimate the upper end of the range of reasonably possible aggregate loss in excess of the related reserves for litigation and regulatory proceedings where we believe the risk of loss is more than slight. See Notes 18 and 27 to the consolidated financial statements for information about certain judicial, litigation and regulatory proceedings. Significant judgment is required in making these estimates and our final liabilities may ultimately be materially different. Our total estimated liability in respect of litigation and regulatory proceedings is determined on a
case-by-case
basis and represents an estimate of probable losses after considering, among other factors, the progress of each case, proceeding or investigation, our experience and the experience of others in similar cases, proceedings or investigations, and the opinions and views of legal counsel.
In accounting for income taxes, we recognize tax positions in the financial statements only when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position. See Note 24 to the consolidated financial statements for further information about income taxes.
   
Goldman Sachs March 2020 Form 10-Q
 
100
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Recent Accounting Developments
See Note 3 to the consolidated financial statements for information about Recent Accounting Developments.
Results of Operations
The composition of our net revenues has varied over time as financial markets and the scope of our operations have changed. The composition of net revenues can also vary over the shorter term due to fluctuations in U.S. and global economic and market conditions. See “Risk Factors” in Part II, Item 1A of this Form 10-Q and in Part I, Item 1A of the 2019 Form
 10-K
for further information about the impact of economic and market conditions on our results of operations.
Financial Overview
The table below presents an overview of our financial results and selected financial ratios.
 
         
    
 
Three Months
Ended March
 
         
$ in millions, except per share amounts
 
 
2020
 
  
2019
 
Net revenues
 
 
$8,743
 
  
$8,807
 
Pre-tax
earnings
 
 
$1,348
 
  
$2,719
 
Net earnings
 
 
$1,213
 
  
$2,251
 
Net earnings to common
 
 
$1,123
 
  
$2,182
 
Diluted earnings per common share
 
 
$  3.11
 
  
$  5.71
 
Annualized ROE
 
 
5.7%
 
  
11.1%
 
Annualized ROTE
 
 
6.0%
 
  
11.7%
 
Annualized net earnings to average total assets
 
 
0.5%
 
  
0.9%
 
Annualized return on average total shareholders’ equity
 
 
5.4%
 
  
10.0%
 
Average equity to average assets
 
 
8.6%
 
  
9.4%
 
Dividend payout ratio
 
 
40.2%
 
  
14.0%
 
 
 
In the table above:
 
•
Net earnings to common represents net earnings applicable to common shareholders, which is calculated as net earnings less preferred stock dividends.
 
 
 
•
Average equity to average assets is calculated by dividing average total shareholders’ equity by average total assets.
 
 
 
•
Dividend payout ratio is calculated by dividing dividends declared per common share by diluted earnings per common share.
 
 
•
Annualized ROE is calculated by dividing annualized net earnings to common by average monthly common shareholders’ equity. Tangible common shareholders’ equity is calculated as total shareholders’ equity less preferred stock, goodwill and identifiable intangible assets. Annualized return on average tangible common shareholders’ equity (ROTE) is calculated by dividing annualized net earnings to common by average monthly tangible common shareholders’ equity. We believe that tangible common shareholders’ equity is meaningful because it is a measure that we and investors use to assess capital adequacy and that ROTE is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed internally. Tangible common shareholders’ equity and ROTE are
non-GAAP
measures and may not be comparable to similar
non-GAAP
measures used by other companies. Annualized return on average total shareholders’ equity is calculated by dividing annualized net earnings by average monthly total shareholders’ equity.
 
 
 
  The table below presents our average equity and the reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity.
 
 
 
         
    
 
Average for the
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Total shareholders’ equity
 
 
$ 90,466
 
  
$ 89,628
 
Preferred stock
 
 
(11,203
)
  
(11,203
)
Common shareholders’ equity
 
 
$ 79,263
 
  
$ 78,425
 
Goodwill and identifiable intangible assets
 
 
(4,821
)
  
(4,096
)
Tangible common shareholders’ equity
 
 
$ 74,442
 
  
$ 74,329
 
 
 
Net Revenues
The table below presents our net revenues by line item.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Investment banking
 
 
$1,742
 
  
$1,618
 
Investment management
 
 
1,768
 
  
1,436
 
Commissions and fees
 
 
1,020
 
  
745
 
Market making
 
 
3,682
 
  
2,723
 
Other principal transactions
 
 
(782
)
  
1,067
 
Total
non-interest
revenues
 
 
7,430
 
  
7,589
 
Interest income
 
 
4,750
 
  
5,597
 
Interest expense
 
 
3,437
 
  
4,379
 
Net interest income
 
 
1,313
 
  
1,218
 
Total net revenues
 
 
$8,743
 
  
$8,807
 
 
 
In the table above:
 
•
Investment banking consists of revenues (excluding net interest) from financial advisory and underwriting assignments. These activities are included in our Investment Banking segment.
 
 
   
101
 
Goldman Sachs March 2020 Form 10-Q
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
•
Investment management consists of revenues (excluding net interest) from providing asset management services across all major asset classes to a diverse set of asset management clients (included in our Asset Management segment), as well as asset management services, wealth advisory services and certain transaction services for wealth management clients (included in our Consumer & Wealth Management segment).
 
 
 
•
Commissions and fees consists of revenues from executing and clearing client transactions on major stock, options and futures exchanges worldwide, as well as
over-the-counter
(OTC) transactions. These activities are included in our Global Markets and Consumer & Wealth Management segments.
 
 
 
•
Market making consists of revenues (excluding net interest) from client execution activities related to making markets in interest rate products, credit products, mortgages, currencies, commodities and equity products. These activities are included in our Global Markets segment.
 
 
 
•
Other principal transactions consists of revenues (excluding net interest) from our equity investing activities, including revenues related to our consolidated investments (included in our Asset Management segment), and lending activities (included across our four segments).
 
 
Operating Environment.
The beginning of the first quarter of 2020 was characterized by favorable market conditions, reflecting continued economic growth and strong consumer sentiment. However, in March, the spread of
COVID-19
across the globe caused a sharp contraction in global economic activity, high levels of volatility across most financial assets and global markets, an unprecedented decline in global equity prices, and a significant widening of credit spreads. Market-making activities operated in an environment characterized by strong client activity and higher levels of volatility compared with the fourth quarter of 2019, as clients reacted to the significant decline in near-term global economic activity and the accommodative monetary policies set by global central banks. Investment banking activities reflected decreases in industry-wide announced and completed mergers and acquisitions activity and industry-wide equity underwriting transactions, while industry-wide investment-grade activity increased. Credit spreads widened during the first quarter of 2020 and global equity markets were lower compared with the end of the fourth quarter of 2019.
If the COVID-19 pandemic persists, it may lead to a decline in market-making activity levels, continued declines in investment banking transaction levels, global equity markets and assets under supervision, and the further widening of credit spreads. As a result, net revenues and the provision for credit losses would likely be negatively impacted. See “Segment Operating Results” for information about the operating environment and material trends and uncertainties that may impact our results of operations.
Three Months Ended March 2020 versus March 2019
Net revenues in the consolidated statements of earnings were $8.74 billion for the first quarter of 2020, essentially unchanged compared with the first quarter of 2019, reflecting significant net losses in other principal transactions, largely offset by significantly higher market marking revenues, investment management revenues and commissions and fees, and higher investment banking revenues and net interest income.
Non-Interest Revenues.
Investment banking revenues in the consolidated statements of earnings were $1.74 billion for the first quarter of 2020, 8% higher than the first quarter of 2019. Revenues in underwriting were significantly higher, due to significantly higher revenues in equity underwriting, primarily from initial public offerings and convertible offerings, and in debt underwriting, driven by asset-backed and leveraged finance activity. This increase was partially offset by lower revenues in financial advisory, reflecting a decrease in industry-wide completed mergers and acquisitions transactions.
Investment management revenues in the consolidated statements of earnings were $1.77 billion for the first quarter of 2020, 23% higher than the first quarter of 2019, due to significantly higher incentive fees, driven by harvesting, and higher management and other fees (including the impact of the consolidation of United Capital Financial Partners, Inc. (United Capital)), reflecting the impact of higher average assets under supervision, partially offset by a lower average effective fee due to shifts in the mix of client assets and strategies.
Commissions and fees in the consolidated statements of earnings were $1.02 billion for the first quarter of 2020, 37% higher than the first quarter of 2019, reflecting an increase in our listed cash equity, options and futures volumes, generally consistent with market volumes.
Market making revenues in the consolidated statements of earnings were $3.68 billion for the first quarter of 2020, 35% higher than the first quarter of 2019, primarily due to significantly higher revenues in interest rate products, equity products and currencies, and higher revenues in commodities and credit products, partially offset by significantly lower results in mortgages.
Other principal transactions revenues in the consolidated statements of earnings were $(782) million for the first quarter of 2020, compared with $1.07 billion for the first quarter of 2019, reflecting significant net losses across debt securities, as well as significant
mark-to-market
net losses from investments in public equities and significantly lower net gains from investments in private equities. These decreases were partially offset by significantly higher revenues related to relationship lending activities, reflecting the impact of changes in credit spreads on hedges.
   
Goldman Sachs March 2020 Form 10-Q
 
102
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Net Interest Income.
Net interest income in the consolidated statements of earnings was $1.31 billion for the first quarter of 2020, 8% higher than the first quarter of 2019, reflecting a decrease in interest expense primarily related to other interest-bearing liabilities, long-term borrowings, collateralized financing and deposits as a result of lower interest rates, partially offset by the impact of higher average balances for deposits. The decrease in interest expense is partially offset by a decrease in interest income primarily related to collateralized agreements, deposits with banks and other interest-earning assets reflecting the impact of lower interest rates, partially offset by trading assets reflecting an impact of higher average balances. See “Statistical Disclosures — Distribution of Assets, Liabilities and Shareholders’ Equity” for further information about our sources of net interest income.
Provision for Credit Losses
Provision for credit losses consists of provision for credit losses on loans and lending commitments held for investment and accounted for at amortized cost. See Note 9 to the consolidated financial statements for further information about the provision for credit losses.
The table below presents our provision for credit losses.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Provision for credit losses
 
 
$937
 
  
$224
 
 
Three Months Ended March 2020 versus March 2019.
Provision for credit losses in the consolidated statements of earnings was $937 million for the first quarter of 2020, compared with $224 million for the first quarter of 2019, primarily due to significantly higher provisions related to corporate loans reflecting continued pressure in the energy sector and the impact of the
COVID-19
pandemic on the broader economic environment. In addition, the first quarter of 2020 included provisions related to growth in corporate loans and credit card loans, and the impact of accounting for credit losses under the CECL standard. See Note 3 to the consolidated financial statements for further information about ASU No.
 2016-13.
Operating Expenses
Our operating expenses are primarily influenced by compensation, headcount and levels of business activity. Compensation and benefits includes salaries, estimated
year-end
discretionary compensation, amortization of equity awards and other items such as benefits. Discretionary compensation is significantly impacted by, among other factors, the level of net revenues, overall financial performance, prevailing labor markets, business mix, the structure of our share-based compensation programs and the external environment.
The table below presents our operating expenses by line item and headcount.
 
         
    
 
 
Three Months
Ended March
 
         
$ in millions
  
2020
   
2019
 
Compensation and benefits
  
$  3,235
   
$  3,259
 
Brokerage, clearing, exchange and distribution fees
  
975
   
762
 
Market development
  
153
   
184
 
Communications and technology
  
321
   
286
 
Depreciation and amortization
  
437
   
368
 
Occupancy
  
238
   
225
 
Professional fees
  
347
   
298
 
Other expenses
  
752
   
482
 
Total operating expenses
  
$  6,458
   
$  5,864
 
 
Headcount at
period-end
  
38,500
   
35,900
 
 
Three Months Ended March 2020 versus March 2019.
Operating expenses in the consolidated statements of earnings were $6.46 billion for the first quarter of 2020, 10% higher than the first quarter of 2019. Our efficiency ratio (total operating expenses divided by total net revenues) for the first quarter of 2020 was 73.9%, compared with 66.6% for the first quarter of 2019.
The increase in operating expenses compared with the first quarter of 2019 was primarily due to significantly higher brokerage, clearing, exchange and distribution fees (reflecting an increase in activity levels), net provisions for litigation and regulatory proceedings, and expenses related to consolidated investments, including impairments (increase was primarily in depreciation and amortization, occupancy and other expenses). In addition, technology expenses and professional fees were higher. The first quarter of 2020 also included higher expenses related to our credit card activities (increases were primarily in professional fees and other expenses) and the impact of the consolidation of United Capital. Compensation and benefits expenses were essentially unchanged, while market development expenses were lower.
Net provisions for litigation and regulatory proceedings for the first quarter of 2020 were $184 million compared with $37 million for the first quarter of 2019.
As of March 2020, headcount was essentially unchanged compared with the end of 2019.
   
103
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Provision for Taxes
The effective income tax rate for the first quarter of 2020 was 10.0%, down from the full year tax rate of 20.0% for 2019, primarily due to tax benefits on the settlement of employee share-based awards and the impact of lower
pre-tax
earnings on permanent tax benefits in the first quarter of 2020.
The CARES Act was enacted on March 27, 2020. The CARES Act includes retroactive and prospective provisions enacted to provide income tax relief and liquidity to businesses affected by the
COVID-19
pandemic. The legislation includes corporate income tax provisions that temporarily allow for the carryback of net operating losses and remove limitations on the use of loss carryforwards, increase interest expense deduction limitations and allow accelerated depreciation deductions on certain asset improvements. The CARES Act did not have a material impact on our effective tax rate for the first quarter of 2020.
The U.S. Internal Revenue Service and the U.S. Department of the Treasury have released final and proposed regulations relating to the implementation of Global Intangible Low Taxed Income and Base Erosion and Anti-Abuse Tax. These final and proposed regulations did not have a material impact on our effective tax rate for the first quarter of 2020.
On March 19, 2020, the U.K. government published Finance Bill
2019-21
(Finance Bill). The Finance Bill includes a repeal of a previously enacted two percentage point decrease in the corporate income tax rate that was scheduled to become effective April 1, 2020. Following Royal Assent, the Finance Bill will be enacted as Finance Act 2020. The impact of this legislation on our provision for income taxes and income tax assets and liabilities will be recognized upon enactment. We do not expect this legislation to have a material impact on our effective tax rate for 2020.
Based on the first quarter of 2020, we expect our 2020 tax rate to be below 20%, excluding the impact of any
non-deductible
litigation.
Segment Assets and Operating Results
Segment Assets.
The table below presents assets by segment.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December 2019
 
Investment Banking
 
 
$   105,059
 
  
$  92,009
 
Global Markets
 
 
800,476
 
  
725,060
 
Asset Management
 
 
92,636
 
  
92,102
 
Consumer & Wealth Management
 
 
91,585
 
  
83,797
 
Total
 
 
$1,089,756
 
  
$992,968
 
 
The allocation process for segment assets is based on the activities of these segments. The allocation of assets includes allocation of global core liquid assets (GCLA) (which consists of unencumbered, highly liquid securities and cash), which is generally included within cash and cash equivalents, collateralized agreements and trading assets on our balance sheet. Due to the integrated nature of these segments, estimates and judgments are made in allocating these assets. See “Risk Management — Liquidity Risk Management” for further information about our GCLA.
Segment Operating Results.
The table below presents our segment operating results.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Investment Banking
 
 
 
  
 
Net revenues
 
 
$  2,184
 
  
$  1,746
 
Provision for credit losses
 
 
622
 
  
86
 
Operating expenses
 
 
1,169
 
  
1,005
 
Pre-tax
earnings
 
 
$    
 
393
 
  
$    
 
655
 
Net earnings to common
 
 
$    
 
343
 
  
$    
 
535
 
Average common equity
 
 
$11,308
 
  
$11,496
 
Return on average common equity
 
 
12.1%
 
  
18.6%
 
 
Global Markets
 
 
 
  
 
Net revenues
 
 
$  5,163
 
  
$  4,040
 
Provision for credit losses
 
 
68
 
  
3
 
Operating expenses
 
 
2,847
 
  
2,748
 
Pre-tax
earnings
 
 
$  2,248
 
  
$  1,289
 
Net earnings to common
 
 
$  1,964
 
  
$  1,020
 
Average common equity
 
 
$39,797
 
  
$40,705
 
Return on average common equity
 
 
19.7%
 
  
10.0%
 
 
Asset Management
 
 
 
  
 
Net revenues
 
 
$
 
     (96
)
  
$  1,793
 
Provision for credit losses
 
 
79
 
  
13
 
Operating expenses
 
 
1,198
 
  
1,103
 
Pre-tax
earnings/(loss)
 
 
$
 
(1,373
)
  
$    
 
677
 
Net earnings/(loss) to common
 
 
$
 
(1,250
)
  
$    
 
549
 
Average common equity
 
 
$21,156
 
  
$20,365
 
Return on average common equity
 
 
(23.6
)%
  
10.8%
 
 
Consumer & Wealth Management
 
 
 
  
 
Net revenues
 
 
$  1,492
 
  
$  1,228
 
Provision for credit losses
 
 
168
 
  
122
 
Operating expenses
 
 
1,244
 
  
1,008
 
Pre-tax
earnings
 
 
$      
 
80
 
  
$       98
 
Net earnings to common
 
 
$      
 
66
 
  
$       78
 
Average common equity
 
 
$  7,002
 
  
$  5,859
 
Return on average common equity
 
 
3.8%
 
  
5.3%
 
 
Total net revenues
 
 
$  8,743
 
  
$  8,807
 
Total provision for credit losses
 
 
937
 
  
224
 
Total operating expenses
 
 
6,458
 
  
5,864
 
Total
pre-tax
earnings
 
 
$  1,348
 
  
$  2,719
 
Net earnings to common
 
 
$  1,123
 
  
$  2,182
 
Average common equity
 
 
$79,263
 
  
$78,425
 
Return on average common equity
 
 
5.7%
 
  
11.1%
 
 
   
Goldman Sachs March 2020 Form 10-Q
 
104
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Net revenues in our segments include allocations of interest income and expense to specific positions in relation to the cash generated by, or funding requirements of, such positions. See Note 25 to the consolidated financial statements for further information about our business segments.
The allocation of common shareholders’ equity and preferred stock dividends to each segment is based on the estimated amount of equity required to support the activities of the segment under relevant regulatory capital requirements. Net earnings for each segment is calculated by applying the firmwide tax rate to each segment’s
pre-tax
earnings.
Compensation and benefits expenses within our segments reflect, among other factors, our overall performance, as well as the performance of individual businesses. Consequently,
pre-tax
margins in one segment of our business may be significantly affected by the performance of our other business segments. A description of segment operating results follows.
Investment Banking
Investment Banking generates revenues from the following:
 
•
Financial advisory.
Includes strategic advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense activities, restructurings and spin-offs.
 
 
•
Underwriting.
Includes public offerings and private placements, including local and cross-border transactions and acquisition financing, of a wide range of securities and other financial instruments, including loans.
 
 
•
Corporate lending.
Includes lending to corporate clients, including middle-market lending, relationship lending and acquisition financing.
 
The table below presents our Investment Banking assets.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Cash and cash equivalents
 
 
$  15,425
 
  
$25,301
 
Collateralized agreements
 
 
21,305
 
  
13,376
 
Customer and other receivables
 
 
3,469
 
  
3,576
 
Trading assets
 
 
15,585
 
  
20,737
 
Investments
 
 
696
 
  
854
 
Loans
 
 
46,947
 
  
26,565
 
Other assets
 
 
1,632
 
  
1,600
 
Total assets
 
 
$105,059
 
  
$92,009
 
 
The table below presents our Investment Banking operating results.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Financial advisory
 
 
$     781
 
  
$     874
 
         
Equity underwriting
 
 
378
 
  
262
 
Debt underwriting
 
 
583
 
  
482
 
Underwriting
 
 
961
 
  
744
 
         
Corporate lending
 
 
442
 
  
128
 
Net revenues
 
 
2,184
 
  
1,746
 
Provision for credit losses
 
 
622
 
  
86
 
Operating expenses
 
 
1,169
 
  
1,005
 
Pre-tax
earnings
 
 
393
 
  
655
 
Provision for taxes
 
 
39
 
  
112
 
Net earnings
 
 
354
 
  
543
 
Preferred stock dividends
 
 
11
 
  
8
 
Net earnings to common
 
 
$     343
 
  
$     535
 
         
Average common equity
 
 
$11,308
 
  
$11,496
 
Return on average common equity
 
 
12.1%
 
  
18.6%
 
 
The table below presents our financial advisory and underwriting transaction volumes.
 
         
    
 
Three Months
Ended March
 
         
$ in billions
 
 
2020
 
  
2019
 
Announced mergers and acquisitions
 
 
$     245
 
  
$     393
 
Completed mergers and acquisitions
 
 
$     196
 
  
$     372
 
Equity and equity-related offerings
 
 
$       12
 
  
$       16
 
Debt offerings
 
 
$       91
 
  
$       70
 
 
In the table above:
 
•
Volumes are per Dealogic.
 
 
•
Announced and completed mergers and acquisitions volumes are based on full credit to each of the advisors in a transaction. Equity and equity-related offerings and debt offerings are based on full credit for single book managers and equal credit for joint book managers. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal or a change in the value of a transaction.
 
 
•
Equity and equity-related offerings includes Rule 144A and public common stock offerings, convertible offerings and rights offerings.
 
 
•
Debt offerings includes
non-convertible
preferred stock, mortgage-backed securities, asset-backed securities and taxable municipal debt. Includes publicly registered and Rule 144A issues and excludes leveraged loans.
 
   
105
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Operating Environment.
During the first quarter of 2020, investment banking activity was negatively impacted by the economic uncertainty related to the
COVID-19
pandemic. Industry-wide announced and completed mergers and acquisitions activity decreased compared with the fourth quarter of 2019. In underwriting, industry-wide equity underwriting transactions decreased, reflecting a decline in initial public offerings, and industry-wide debt underwriting activity reflected a decrease in acquisition-related financing, but a significant increase in investment-grade activity, all compared with the fourth quarter of 2019. In credit markets, spreads widened, particularly towards the end of the quarter, and corporate clients borrowed under revolving lines of credit to address liquidity needs. In the future, if industry-wide mergers and acquisitions transactions, equity underwriting transactions or debt underwriting transactions continue to decline, or credit spreads tighten, net revenues in Investment Banking would likely be negatively impacted. In addition, a continued deterioration in the creditworthiness of borrowers would negatively impact the provision for credit losses.
Three Months Ended March
 2020 versus March
 2019.
Net revenues in Investment Banking were $2.18 billion for the first quarter of 2020, 25% higher than the first quarter of 2019, reflecting significantly higher net revenues in Corporate lending and Underwriting, partially offset by lower net revenues in Financial advisory.
The increase in Corporate lending net revenues was due to significantly higher net revenues related to relationship lending activities, reflecting the impact of changes in credit spreads on hedges. The first quarter of 2020 included approximately $375 million of net gains related to these hedges. The increase in Underwriting net revenues was due to significantly higher net revenues in Equity underwriting, primarily from initial public offerings and convertible offerings, and in Debt underwriting, driven by asset-backed and leveraged finance activity. The decrease in Financial advisory net revenues reflected a decrease in industry-wide completed mergers and acquisitions transactions.
Provision for credit losses was $622 million for the first quarter of 2020, compared with $86 million for the first quarter of 2019, primarily due to draws on committed corporate lines, continued pressure in the energy sector, and the impact of the
COVID-19
pandemic on the broader economic environment. In addition, the first quarter of 2020 included the impact of accounting for credit losses under the CECL standard. See Note 3 to the consolidated financial statements for further information about ASU No.
 2016-13.
Operating expenses were $1.17 billion for the first quarter of 2020, 16% higher than the first quarter of 2019, primarily due to higher net provisions for litigation and regulatory proceedings.
Pre-tax
earnings were $393 million for the first quarter of 2020, 40% lower than the first quarter of 2019.
As of March 2020, our investment banking transaction backlog decreased compared with December 2019, due to lower estimated net revenues from potential advisory transactions and potential debt underwriting transactions, particularly from acquisition-related financing. These decreases were partially offset by higher estimated net revenues from potential equity underwriting transactions, primarily from secondary and initial public offerings.
Our investment banking transaction backlog represents an estimate of our future net revenues from investment banking transactions where we believe that future revenue realization is more likely than not. We believe changes in our investment banking transaction backlog may be a useful indicator of client activity levels which, over the long term, impact our net revenues. However, the time frame for completion and corresponding revenue recognition of transactions in our backlog varies based on the nature of the assignment, as certain transactions may remain in our backlog for longer periods of time, which we expect to occur in light of the impact of the COVID-19 pandemic on mergers and acquisitions. In addition, our transaction backlog is subject to certain limitations, such as assumptions about the likelihood that individual client transactions will occur in the future. Transactions may be cancelled or modified, and transactions not included in the estimate may also occur.
Global Markets
Our Global Markets segment consists of:
FICC
.
FICC generates revenues from intermediation and financing activities.
 
•
FICC intermediation.
Includes client execution activities related to making markets in both trading cash and derivative instruments, as detailed below.
 
Interest Rate Products.
Government bonds (including inflation-linked securities) across maturities, other government-backed securities, and interest rate swaps, options and other derivatives.
Credit Products.
Investment-grade corporate securities, high-yield securities, credit derivatives, exchange-traded funds (ETFs), bank and bridge loans, municipal securities, emerging market and distressed debt, and trade claims.
Mortgages.
Commercial mortgage-related securities, loans and derivatives, residential mortgage-related securities, loans and derivatives (including U.S. government agency-issued collateralized mortgage obligations and other securities and loans), and other asset-backed securities, loans and derivatives.
Currencies.
Currency options, spot/forwards and other derivatives on
G-10
currencies and emerging-market products.
   
Goldman Sachs March 2020 Form 10-Q
 
106
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Commodities.
Commodity derivatives and, to a lesser extent, physical commodities, involving crude oil and petroleum products, natural gas, base, precious and other metals, electricity, coal, agricultural and other commodity products.
For further information about market-making activities, see “Market-Making Activities” below.
 
•
FICC financing.
Includes providing financing to our clients through securities sold under agreements to repurchase (repurchase agreements), as well as through structured credit, warehouse lending (including residential and commercial mortgage lending) and asset-backed lending, which are typically longer term in nature.
 
Equities.
Equities generates revenues from intermediation and financing activities.
 
•
Equities intermediation.
We make markets in equity securities and equity-related products, including ETFs, convertible securities, options, futures and
over-the-counter
(OTC) derivative instruments, on a global basis. We also structure and make markets in derivatives on indices, industry sectors, financial measures and individual company stocks. Our exchange-based market-making activities include making markets in stocks and ETFs, futures and options on major exchanges worldwide. In addition, we generate commissions and fees from executing and clearing institutional client transactions on major stock, options and futures exchanges worldwide, as well as OTC transactions. For further information about market-making activities, see “Market-Making Activities” below.
 
 
•
Equities financing.
Includes prime brokerage and other equities financing activities, including securities lending, margin lending and swaps. We earn fees by providing clearing, settlement and custody services globally. We provide services that principally involve borrowing and lending securities to cover institutional clients’ short sales and borrowing securities to cover our short sales and otherwise to make deliveries into the market. In addition, we are an active participant in
broker-to-broker
securities lending and third-party agency lending activities. We provide financing to our clients for their securities trading activities through margin loans that are collateralized by securities, cash or other acceptable collateral. In addition, we execute swap transactions to provide our clients with exposure to securities and indices.
 
Market-Making Activities
As a market maker, we facilitate transactions in both liquid and less liquid markets, primarily for institutional clients, such as corporations, financial institutions, investment funds and governments, to assist clients in meeting their investment objectives and in managing their risks. In this role, we seek to earn the difference between the price at which a market participant is willing to sell an instrument to us and the price at which another market participant is willing to buy it from us, and vice versa (i.e., bid/offer spread). In addition, we maintain (i) market-making positions, typically for a short period of time, in response to, or in anticipation of, client demand, and (ii) positions to actively manage our risk exposures that arise from these market-making activities (collectively, inventory). Our inventory is recorded in trading assets (long positions) or trading liabilities (short positions) in our consolidated balance sheets.
Our results are influenced by a combination of interconnected drivers, including (i) client activity levels and transactional bid/offer spreads (collectively, client activity), and (ii) changes in the fair value of our inventory and interest income and interest expense related to the holding, hedging and funding of our inventory (collectively, market-making inventory changes). Due to the integrated nature of our market-making activities, disaggregation of net revenues into client activity and market-making inventory changes is judgmental and has inherent complexities and limitations.
The amount and composition of our net revenues vary over time as these drivers are impacted by multiple interrelated factors affecting economic and market conditions, including volatility and liquidity in the market, changes in interest rates, currency exchange rates, credit spreads, equity prices and commodity prices, investor confidence, and other macroeconomic concerns and uncertainties.
In general, assuming all other market-making conditions remain constant, increases in client activity levels or bid/offer spreads tend to result in increases in net revenues, and decreases tend to have the opposite effect. However, changes in market-making conditions can materially impact client activity levels and bid/offer spreads, as well as the fair value of our inventory. For example, a decrease in liquidity in the market could have the impact of (i) increasing our bid/offer spread, (ii) decreasing investor confidence and thereby decreasing client activity levels, and (iii) widening of credit spreads on our inventory positions.
   
107
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
The table below presents our Global Markets assets.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Cash and cash equivalents
 
 
$  68,511
 
  
$  82,819
 
Collateralized agreements
 
 
207,297
 
  
196,278
 
Customer and other receivables
 
 
109,941
 
  
63,277
 
Trading assets
 
 
341,644
 
  
316,242
 
Investments
 
 
33,774
 
  
25,937
 
Loans
 
 
30,272
 
  
31,111
 
Other assets
 
 
9,037
 
  
9,396
 
Total assets
 
 
$800,476
 
  
$725,060
 
 
The table below presents our Global Markets operating results.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
FICC intermediation
 
 
$    2,537
 
  
$    1,872
 
FICC financing
 
 
432
 
  
366
 
FICC
 
 
2,969
 
  
2,238
 
         
Equities intermediation
 
 
1,528
 
  
1,161
 
Equities financing
 
 
666
 
  
641
 
Equities
 
 
2,194
 
  
1,802
 
Net revenues
 
 
5,163
 
  
4,040
 
Provision for credit losses
 
 
68
 
  
3
 
Operating expenses
 
 
2,847
 
  
2,748
 
Pre-tax
earnings
 
 
2,248
 
  
1,289
 
Provision for taxes
 
 
225
 
  
221
 
Net earnings
 
 
2,023
 
  
1,068
 
Preferred stock dividends
 
 
59
 
  
48
 
Net earnings to common
 
 
$    1,964
 
  
$    1,020
 
         
Average common equity
 
 
$  39,797
 
  
$  40,705
 
Return on average common equity
 
 
19.7%
 
  
10.0%
 
 
In the table above, net revenues for the three months ended March 2020 included gains of approximately $180 million (of the total gains of approximately $265 million for the firm) related to sales of
available-for-sale
securities, of which approximately 50% was recorded in each of FICC and Equities.
The table below presents our Global Markets net revenues by line item in the consolidated statements of earnings.
 
             
             
$ in millions
  
FICC
   
Equities
   
Global Markets
 
Three Months Ended March 2020
  
   
 
Market making
 
 
$2,334
 
 
 
$1,348
 
 
 
$3,682
 
Commissions and fees
 
 
–
 
 
 
980
 
 
 
980
 
Other principal transactions
 
 
(20
)
 
 
10
 
 
 
(10
)
Net interest income
 
 
655
 
 
 
(144
)
 
 
511
 
Total net revenues
 
 
$2,969
 
 
 
$2,194
 
 
 
$5,163
 
 
Three Months Ended March 2019
  
   
 
Market making
  
$1,702
   
$1,021
   
$2,723
 
Commissions and fees
  
–
   
714
   
714
 
Other principal transactions
  
11
   
35
   
46
 
Net interest income
  
525
   
32
   
557
 
Total net revenues
  
$2,238
   
$1,802
   
$4,040
 
 
In the table above:
 
•
The difference between commissions and fees and those in the consolidated statements of earnings represents commissions and fees included in our Consumer & Wealth Management segment.
 
•
See “Net Revenues” for further information about market making revenues, commissions and fees, other principal transactions revenues and net interest income. See Note 25 to the consolidated financial statements for net interest income by business segment.
 
 
•
The primary driver of net revenues for FICC intermediation was client activity.
 
Operating Environment.
During the first quarter of 2020, Global Markets operated in an environment characterized by strong client activity and higher levels of volatility compared with the fourth quarter of 2019. The average daily VIX for the first quarter of 2020 increased to 30 (and peaked at 83 in March), compared with 14 for the fourth quarter of 2019. The increase in client activity and volatility was due to the risks from the
COVID-19
pandemic as clients reacted to the significant decline in near-term global economic activity and the accommodative monetary policies set by global central banks. Global equity markets decreased during the first quarter of 2020 (with the MSCI World Index down 22%) and credit spreads widened (with U.S. investment-grade wider by
approximately 150 basis points and high-yield credit spreads wider by approximately 375 basis points), both particularly towards the end of the quarter. If macroeconomic concerns lead to a decline in activity levels or volatility, net revenues in Global Markets would likely be negatively impacted.
Three Months Ended March
 2020 versus March
 2019.
Net revenues in Global Markets were $5.16 billion for the first quarter of 2020, 28% higher than the first quarter of 2019.
Net revenues in FICC were $2.97 billion, 33% higher than the first quarter of 2019, due to significantly higher net revenues in FICC intermediation, reflecting significantly higher client activity, partially offset by the impact of challenging market-making conditions on our inventory, and higher net revenues in FICC financing, driven by repurchase agreements.
The following provides information about our FICC intermediation net revenues by business, compared with results in the first quarter of 2019:
 
•
Net revenues in currencies were significantly higher, driven by higher client activity.
 
 
•
Net revenues in credit products were significantly higher and commodities were higher, reflecting higher client activity, partially offset by the impact of challenging market-making conditions on our inventory.
 
 
•
Net revenues in interest rate products were slightly higher, reflecting higher client activity, largely offset by the impact of challenging market-making conditions on our inventory.
 
   
Goldman Sachs March 2020 Form 10-Q
 
108
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
•
Net revenues in mortgages were significantly lower, driven by the impact of challenging market-making conditions on our inventory.
 
Net revenues in Equities were $2.19 billion, 22% higher than the first quarter of 2019, due to significantly higher net revenues in Equities intermediation, driven by derivatives, and slightly higher net revenues in Equities financing, reflecting higher average customer balances.
Provision for credit losses was $68 million for the first quarter of 2020, compared with $3 million for the first quarter of 2019, reflecting the impact of the
COVID-19
pandemic on the broader economic environment.
Operating expenses were $2.85 billion for the first quarter of 2020, 4% higher than the first quarter of 2019, due to significantly higher brokerage, clearing, exchange and distribution fees and higher net provisions for litigation and regulatory proceedings, partially offset by decreased compensation and benefits expenses.
Pre-tax
earnings were $2.25 billion for the first quarter of 2020, 74% higher than the first quarter of 2019.
Asset Management
We manage client assets across a broad range of investment strategies and asset classes for a diverse set of institutional clients and a network of third-party distributors around the world, including equity, fixed income and alternative investments. We provide investment solutions including those managed on a fiduciary basis by our portfolio managers, as well as those managed by a variety of third-party managers. We offer our investment solutions in a variety of structures, including separately managed accounts, mutual funds, private partnerships and other comingled vehicles. These solutions begin with identifying clients’ objectives and continue through portfolio construction, ongoing asset allocation and risk management and investment realization.
In addition to managing client assets, we invest in alternative investments across a range of asset classes that seek to deliver long-term accretive risk-adjusted returns. Our investing activities, which are typically longer term, include investments in corporate equity, credit, real estate and infrastructure assets.
Asset Management generates revenues from the following:
 
•
Management and other fees.
The majority of revenues in management and other fees consists of asset-based fees on client assets that we manage. For further information about assets under supervision (AUS), see “Assets Under Supervision” below. The fees that we charge vary by asset class, distribution channel and the types of services provided, and are affected by investment performance, as well as asset inflows and redemptions.
 
•
Incentive fees.
In certain circumstances, we also receive incentive fees based on a percentage of a fund’s or a separately managed account’s return, or when the return exceeds a specified benchmark or other performance targets. Such fees include overrides, which consist of the increased share of the income and gains derived primarily from our private equity and credit funds when the return on a fund’s investments over the life of the fund exceeds certain threshold returns. Incentive fees are recognized when it is probable that a significant reversal of such fees will not occur.
 
 
•
Equity investments.
Our alternative investing activities relate to public and private equity investments in corporate, real estate and infrastructure assets. We also make investments through consolidated investment entities (CIEs), substantially all of which are engaged in real estate investment activities.
 
 
•
Lending and debt investments.
We invest in corporate debt and provide financing for real estate and other assets. These activities include investments in mezzanine debt, senior debt and distressed debt securities.
 
The table below presents our Asset Management assets.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Cash and cash equivalents
 
 
$   5,336
 
  
$  6,756
 
Collateralized agreements
 
 
7,011
 
  
3,433
 
Customer and other receivables
 
 
1,880
 
  
1,579
 
Trading assets
 
 
5,035
 
  
5,266
 
Investments
 
 
34,176
 
  
37,096
 
Loans
 
 
16,246
 
  
17,101
 
Other assets
 
 
22,952
 
  
20,871
 
Total assets
 
 
$ 92,636
 
  
$92,102
 
 
The table below presents our Asset Management operating results.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Management and other fees
 
 
$      640
 
  
 $     607
 
Incentive fees
 
 
154
 
  
30
 
Equity investments
 
 
(22
)
  
805
 
Lending and debt investments
 
 
(868
)
  
351
 
Net revenues
 
 
(96
)
  
1,793
 
Provision for credit losses
 
 
79
 
  
13
 
Operating expenses
 
 
1,198
 
  
1,103
 
Pre-tax
earnings/(loss)
 
 
(1,373
)
  
677
 
Provision/(benefit) for taxes
 
 
(137
)
  
118
 
Net earnings/(loss)
 
 
(1,236
)
  
559
 
Preferred stock dividends
 
 
14
 
  
10
 
Net earnings/(loss) to common
 
 
$
 
 (1,250
)
  
$     549
 
         
Average common equity
 
 
$ 21,156
 
  
$20,365
 
Return on average common equity
 
 
(23.6)%
 
  
10.8%
 
 
   
109
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Operating Environment.
During the first quarter of 2020, macroeconomic concerns from the
COVID-19
pandemic led to lower global equity prices and wider credit spreads, particularly in March, compared to the end of the fourth quarter of 2019, as well as uncertainty in the economic outlook. If the COVID-19 pandemic persists, asset prices may continue to decline, credit spreads may continue to widen, investors may continue to favor asset classes that typically generate lower fees and investors may withdraw their assets. As a result, net revenues in Asset Management would likely continue to be negatively impacted.
Three Months Ended March
 2020 versus March
 2019.
Net revenues in Asset Management were $(96) million for the first quarter of 2020, compared with $1.79 billion for the first quarter of 2019, reflecting significant net losses in Lending and debt investments and net losses in Equity investments. These decreases were partially offset by significantly higher Incentive fees and higher Management and other fees from our institutional and third-party distribution asset management clients.
As a result of the challenging operating environment, Lending and debt investments reflected significant net losses across debt securities, particularly within our private credit group and multi-strategy investing portfolios. Equity investments reflected $484 million in mark-
to-market
net losses from investments in public equities partially offset by $462 million of net gains from investments in private equities. The results from investments in private equities included approximately $775 million of net gains from pending and completed sales and approximately $200 million of operating net revenues from CIEs, partially offset by approximately $500 million of mark-downs. Net revenues in Equity investments for the first quarter of 2020 included net losses of $573 million from corporate investments, which were largely offset by net gains of $551 million from real estate investments.
The increase in Incentive fees was driven by harvesting and the increase in Management and other fees reflected the impact of higher average assets under supervision, partially offset by a lower average effective fee due to shifts in the mix of client assets and strategies.
Provision for credit losses was $79 million for the first quarter of 2020, compared with $13 million for the first quarter of 2019, reflecting the impact of the
COVID-19
pandemic on the broader economic environment.
Operating expenses were $1.20 billion for the first quarter of 2020, 9% higher than the first quarter of 2019, due to higher expenses related to consolidated investments, including impairments.
Pre-tax
loss was $1.37 billion for the first quarter of 2020, compared with
pre-tax
earnings of $677 million for the first quarter of 2019.
Consumer & Wealth Management
Consumer & Wealth Management helps clients achieve their individual financial goals by providing a broad range of wealth advisory and banking services, including financial planning, investment management, deposit taking, and lending. Services are offered through our global network of advisors and via our digital platforms.
Wealth Management.
Wealth management provides tailored wealth advisory services to clients across the wealth spectrum. We operate globally serving individuals, families, family offices, and select foundations and endowments. Our relationships are established directly or introduced through corporations that sponsor financial wellness programs for their employees.
We offer personalized financial planning inclusive of income and liability management, compensation and benefits analysis, trust and estate structuring, tax optimization, philanthropic giving, and asset protection. We also provide customized investment advisory solutions, and offer structuring and execution capabilities in security and derivative products across all major global markets. We leverage a broad, open-architecture investment platform and our global execution capabilities to help clients achieve their investment goals. In addition, we offer clients a full range of private banking services, including a variety of deposit alternatives and loans that our clients use to finance investments in both financial and nonfinancial assets, bridge cash flow timing gaps or provide liquidity and flexibility for other needs.
Wealth management generates revenues from the following:
 
•
Management and other fees.
Includes fees related to managing assets, providing investing and wealth advisory solutions, providing financial planning and counseling services via our subsidiary, The Ayco Company, L.P., and executing brokerage transactions for wealth management clients.
 
 
•
Incentive fees.
In certain circumstances, we also receive incentive fees based on a percentage of a fund’s return, or when the return exceeds a specified benchmark or other performance targets. Such fees include overrides, which consist of the increased share of the income and gains derived primarily from our private equity and credit funds when the return on a fund’s investments over the life of the fund exceeds certain threshold returns. Incentive fees are recognized when it is probable that a significant reversal of such fees will not occur.
 
 
•
Private banking and lending.
Includes interest income allocated to deposit-taking and net interest income earned on lending activities for wealth management clients.
 
   
Goldman Sachs March 2020 Form 10-Q
 
110
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Consumer Banking.
Our Consumer banking business issues unsecured loans, through Marcus
and credit cards to finance the purchases of goods or services. We also accept deposits through Marcus, primarily through Goldman Sachs Bank USA (GS Bank USA) and Goldman Sachs International Bank (GSIB), that are used as a source of funding. These deposits include savings and time deposits which provide us with a diversified source of funding that reduces our reliance on wholesale funding.
Consumer banking revenues consist of net interest income earned on unsecured loans issued to consumers through Marcus and credit card lending activities, and net interest income allocated to consumer deposits.
The table below presents our Consumer & Wealth Management assets.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Cash and cash equivalents
 
 
$16,217
 
  
$18,670
 
Collateralized agreements
 
 
18,390
 
  
8,675
 
Customer and other receivables
 
 
5,637
 
  
6,173
 
Trading assets
 
 
13,207
 
  
13,087
 
Investments
 
 
48
 
  
50
 
Loans
 
 
34,988
 
  
34,127
 
Other assets
 
 
3,098
 
  
3,015
 
Total assets
 
 
$91,585
 
  
$83,797
 
 
The table below presents our Consumer & Wealth Management operating results.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
Management and other fees
 
 
$    
 
959
 
  
$     794
 
Incentive fees
 
 
69
 
  
28
 
Private banking and lending
 
 
182
 
  
203
 
Wealth management
 
 
1,210
 
  
1,025
 
 
Consumer banking
 
 
282
 
  
203
 
Net revenues
 
 
1,492
 
  
1,228
 
Provision for credit losses
 
 
168
 
  
122
 
Operating expenses
 
 
1,244
 
  
1,008
 
Pre-tax
earnings
 
 
80
 
  
98
 
Provision for taxes
 
 
8
 
  
17
 
Net earnings
 
 
72
 
  
81
 
Preferred stock dividends
 
 
6
 
  
3
 
Net earnings to common
 
 
$
 
      66
 
  
$       78
 
 
Average common equity
 
 
$  7,002
 
  
$  5,859
 
Return on average common equity
 
 
3.8%
 
  
5.3%
 
 
Operating Environment.
During the first quarter of 2020, macroeconomic concerns from the
COVID-19
pandemic led to lower global equity prices, particularly in March, compared to the end of the fourth quarter of 2019, which affected the market levels of our long-term assets under supervision. Our consumer banking activities reflected continued increases in deposits, while loan balances remained stable. If the COVID-19 pandemic persists, asset prices may continue to decline, investors may continue to favor asset classes that typically generate lower fees, investors may withdraw their assets and consumers may withdraw their deposits or consumer credit may deteriorate. As a result, net revenues and the provision for credit losses in Consumer & Wealth Management would likely continue to be negatively impacted.
Three Months Ended March
 2020 and March
 2019.
Net revenues in Consumer & Wealth Management were $1.49 billion for the first quarter of 2020, 21% higher than the first quarter of 2019.
Net revenues in Wealth management were $1.21 billion, 18% higher than the first quarter of 2019, due to significantly higher Management and other fees (including the impact of the consolidation of United Capital), primarily reflecting higher average assets under supervision and higher transaction volumes, and higher Incentive fees. Net revenues in Private banking and lending were lower compared with the first quarter of 2019.
Net revenues in Consumer banking were $282 million, 39% higher than the first quarter of 2019, driven by higher net interest income, primarily reflecting an increase in deposit balances and the addition of credit card loans.
Provision for credit losses was $168 million for the first quarter of 2020, 38% higher than the first quarter of 2019, as the first quarter of 2020 included provisions related to credit card loans.
Operating expenses were $1.24 billion for the first quarter of 2020, 23% higher than the first quarter of 2019, primarily due to the impact of the consolidation of United Capital and higher expenses related to our credit card activities.
Pre-tax
earnings were $80 million for the first quarter of 2020, 18% lower than the first quarter of 2019.
   
111
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Assets Under Supervision
Assets under supervision includes our institutional clients’ assets and assets sourced through third-party distributors (both included in our Asset Management segment), as well as
high-net-worth
clients’ assets (included in our Consumer & Wealth Management segment), where we earn a fee for managing assets on a discretionary basis. This includes net assets in our mutual funds, hedge funds, credit funds, private equity funds, real estate funds, and separately managed accounts for institutional and individual investors. Assets under supervision also include client assets invested with third-party managers, private bank deposits and advisory relationships where we earn a fee for advisory and other services, but do not have investment discretion. Assets under supervision do not include the self-directed brokerage assets of our clients.
The table below presents information about our firmwide
period-end
assets under supervision by segment, asset class, distribution channel, region and vehicle.
 
         
    
 
As of March
 
         
$ in billions
 
 
2020
 
  
2019
 
Segment
 
 
 
  
 
Asset Management
 
 
$1,309
 
  
$1,117
 
Consumer & Wealth Management
 
 
509
 
  
482
 
Total AUS
 
 
$1,818
 
  
$1,599
 
Asset Class
 
 
 
  
 
Alternative investments
 
 
$   178
 
  
$   172
 
Equity
 
 
335
 
  
335
 
Fixed income
 
 
771
 
  
717
 
Total long-term AUS
 
 
1,284
 
  
1,224
 
Liquidity products
 
 
534
 
  
375
 
Total AUS
 
 
$1,818
 
  
$1,599
 
Distribution Channel
 
 
 
  
 
Institutional
 
 
$   657
 
  
$   620
 
Wealth management
 
 
509
 
  
482
 
Third-party distributed
 
 
652
 
  
497
 
Total AUS
 
 
$1,818
 
  
$1,599
 
Region
 
 
 
  
 
Americas
 
 
$1,396
 
  
$1,183
 
EMEA
 
 
264
 
  
255
 
Asia
 
 
158
 
  
161
 
Total AUS
 
 
$1,818
 
  
$1,599
 
Vehicle
 
 
 
  
 
Separate accounts
 
 
$1,001
 
  
$   927
 
Public funds
 
 
622
 
  
510
 
Private funds and other
 
 
195
 
  
162
 
Total AUS
 
 
$1,818
 
  
$1,599
 
 
In the table above:
 
•
Liquidity products includes money market funds and private bank deposits.
 
 
•
EMEA represents Europe, Middle East and Africa.
 
Asset classes, such as alternative investment and equity assets, typically generate higher fees relative to fixed income and liquidity product assets. The average effective management fee (which excludes
non-asset-based
fees) we earned on our firmwide assets under supervision was 31 basis points for the three months ended March 2020 and 33 basis points for the three months ended March 2019. This decrease primarily reflected shifts in the mix of client assets and strategies.
 
We earn management fees on client assets that we manage and also receive incentive fees based on a percentage of a fund’s or a separately managed account’s return, or when the return exceeds a specified benchmark or other performance targets. These incentive fees are recognized when it is probable that a significant reversal of such fees will not occur. Our estimated unrecognized incentive fees were $1.58 billion as of March 2020 and $1.63 billion as of December 2019. Such amounts are based on the completion of the funds’ financial statements, which is generally one quarter in arrears. These fees will be recognized, assuming no decline in fair value, if and when it is probable that a significant reversal of such fees will not occur, which is generally when such fees are no longer subject to fluctuations in the market value of the assets of the funds.
The table below presents changes in our assets under supervision.
 
         
    
 
Three Months
Ended March
 
         
$ in billions
 
 
2020
 
  
2019
 
Asset Management
 
 
 
  
 
Beginning balance
 
 
$1,298
 
  
$1,087
 
Net inflows/(outflows):
 
 
 
  
 
Alternative investments
 
 
(1
)
  
–
 
Equity
 
 
2
 
  
3
 
Fixed income
 
 
7
 
  
18
 
Total long-term AUS net inflows/(outflows)
 
 
8
 
  
21
 
Liquidity products
 
 
66
 
  
(25
)
Total AUS net inflows/(outflows)
 
 
74
 
  
(4
)
Net market appreciation/(depreciation)
 
 
(63
)
  
34
 
Ending balance
 
 
$1,309
 
  
$1,117
 
Consumer & Wealth Management
 
 
 
  
 
Beginning balance
 
 
$   561
 
  
$   455
 
Net inflows/(outflows):
 
 
 
  
 
Alternative investments
 
 
–
 
  
1
 
Equity
 
 
1
 
  
(4
)
Fixed income
 
 
(8
)
  
2
 
Total long-term AUS net inflows/(outflows)
 
 
(7
)
  
(1
)
Liquidity products
 
 
6
 
  
3
 
Total AUS net inflows/(outflows)
 
 
(1
)
  
2
 
Net market appreciation/(depreciation)
 
 
(51
)
  
25
 
Ending balance
 
 
$   509
 
  
$   482
 
Firmwide
 
 
 
  
 
Beginning balance
 
 
$1,859
 
  
$1,542
 
Net inflows/(outflows):
 
 
 
  
 
Alternative investments
 
 
(1
)
  
1
 
Equity
 
 
3
 
  
(1
)
Fixed income
 
 
(1
)
  
20
 
Total long-term AUS net inflows/(outflows)
 
 
1
 
  
20
 
Liquidity products
 
 
72
 
  
(22
)
Total AUS net inflows/(outflows)
 
 
73
 
  
(2
)
Net market appreciation/(depreciation)
 
 
(114
)
  
59
 
Ending balance
 
 
$1,818
 
  
$1,599
 
 
   
Goldman Sachs March 2020 Form 10-Q
 
112
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
The table below presents information about our average monthly firmwide assets under supervision by segment and asset class.
 
         
    
 
Average for the
Three Months
Ended March
 
         
$ in billions
 
 
2020
 
  
2019
 
Segment
 
 
 
  
 
Asset Management
 
 
$1,295
 
  
$1,102
 
Consumer & Wealth Management
 
 
546
 
  
474
 
Total AUS
 
 
$1,841
 
  
$1,576
 
Asset Class
 
 
 
  
 
Alternative investments
 
 
$   183
 
  
$   170
 
Equity
 
 
392
 
  
324
 
Fixed income
 
 
796
 
  
693
 
Total long-term AUS
 
 
1,371
 
  
1,187
 
Liquidity products
 
 
470
 
  
389
 
Total AUS
 
 
$1,841
 
  
$1,576
 
In addition to our assets under supervision, we have discretion over alternative investments where we currently do not earn management fees
(non-fee-earning
alternative assets).
The table below presents information about our assets under supervision for alternative assets,
non-fee-earning
alternative assets and total alternative assets.
 
             
             
$ in billions
  
AUS
   
Non-fee-earning
alternative assets
   
Total
alternative
assets
 
As of March 2020
 
 
 
  
   
 
Corporate equity
 
 
$  80
 
 
 
$  40
 
 
 
$120
 
Credit
 
 
15
 
 
 
49
 
 
 
64
 
Real estate
 
 
13
 
 
 
45
 
 
 
58
 
Hedge funds and multi-asset
 
 
70
 
 
 
1
 
 
 
71
 
Other
 
 
–
 
 
 
1
 
 
 
1
 
Total
 
 
$178
 
 
 
$136
 
 
 
$314
 
 
As of March 2019
 
 
 
  
   
 
Corporate equity
  
$  73
   
$  39
   
$112
 
Credit
  
12
   
45
   
57
 
Real estate
  
10
   
43
   
53
 
Hedge funds and multi-asset
  
77
   
1
   
78
 
Other
  
–
   
1
   
1
 
Total
  
$172
   
$129
   
$301
 
In the table above:
 
•
Substantially all corporate equity is private equity.
 
•
Total alternative assets included uncalled capital that is available for future investing of $31 billion as of March 2020 and $24 billion as of March 2019.
 
•
Non-fee-earning
alternative assets primarily includes investments that we hold on our balance sheet, our unfunded commitments, unfunded commitments of our clients (where we do not charge fees on commitments), credit facilities collateralized by fund assets and employee funds. Our calculation of
non-fee-earning
alternative assets may not be comparable to similar calculations used by other companies.
The table below presents information about alternative investments in our Asset Management segment that we hold on our balance sheet.
 
                     
                     
$ in billions
  
Loans
   
Debt securities
   
Equity
   
Other assets
   
Total
 
As of March 2020
 
 
 
  
   
   
   
 
Corporate equity
 
 
$  
 
–
 
 
 
$  
 
–
 
 
 
$16
 
 
 
$  
 
–
 
 
 
$16
 
Credit
 
 
8
 
 
 
10
 
 
 
–
 
 
 
–
 
 
 
18
 
Real estate
 
 
8
 
 
 
3
 
 
 
5
 
 
 
19
 
 
 
35
 
Other
 
 
–
 
 
 
–
 
 
 
–
 
 
 
1
 
 
 
1
 
Total
 
 
$16
 
 
 
$13
 
 
 
$21
 
 
 
$20
 
 
 
$70
 
 
As of March 2019
 
 
 
  
   
   
   
 
Corporate equity
  
$  
 
–
   
$  
 
–
   
$18
   
$  
 
–
   
$18
 
Credit
  
6
   
8
   
–
   
–
   
14
 
Real estate
  
8
   
3
   
4
   
15
   
30
 
Other
  
–
   
–
   
–
   
1
   
1
 
Total
  
$14
   
$11
   
$22
   
$16
   
$63
 
In the table above:
 
•
Corporate equity includes private equity positions of $14 billion as of March 2020 and $17 billion as of March 2019. Corporate equity also includes public equity positions that converted from private equity upon the initial public offering of the underlying company of $2 billion as of March 2020 and $1 billion as of March 2019.
 
•
Other assets represents investments held by CIEs, which were funded with liabilities of approximately $11 billion as of March 2020 and $8 billion as of March 2019. Substantially all such liabilities were nonrecourse, thereby reducing our equity at risk.
The table below presents information about our equity investments by vintage.
 
     
     
$ in billions
 
 
As of
March 2020
 
Equity investments
 
 
$21
 
 
2013 or earlier
 
 
36%
 
2014 - 2016
 
 
37%
 
2017 - thereafter
 
 
27%
 
Total
 
 
100%
 
Geographic Data
See Note 25 to the consolidated financial statements for a summary of our total net revenues and
pre-tax
earnings by geographic region.
   
113
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Balance Sheet and Funding Sources
Balance Sheet Management
One of our risk management disciplines is our ability to manage the size and composition of our balance sheet. While our asset base changes due to client activity, market fluctuations and business opportunities, the size and composition of our balance sheet also reflects factors including (i) our overall risk tolerance, (ii) the amount of equity capital we hold and (iii) our funding profile, among other factors. See “Equity Capital Management and Regulatory Capital — Equity Capital Management” for information about our equity capital management process.
Although our balance sheet fluctuates on a
day-to-day
basis, our total assets at
quarter-end
and
year-end
dates are generally not materially different from those occurring within our reporting periods.
In order to ensure appropriate risk management, we seek to maintain a sufficiently liquid balance sheet and have processes in place to dynamically manage our assets and liabilities, which include (i) balance sheet planning, (ii) balance sheet limits, (iii) monitoring of key metrics and (iv) scenario analyses.
Balance Sheet Planning.
We prepare a balance sheet plan that combines our projected total assets and composition of assets with our expected funding sources over a three-year time horizon. This plan is reviewed quarterly and may be adjusted in response to changing business needs or market conditions. The objectives of this planning process are:
 
•
To develop our balance sheet projections, taking into account the general state of the financial markets and expected business activity levels, as well as regulatory requirements;
 
•
To allow Treasury and our independent risk oversight and control functions to objectively evaluate balance sheet limit requests from our revenue-producing units in the context of our overall balance sheet constraints, including our liability profile and equity capital levels, and key metrics; and
 
•
To inform the target amount, tenor and type of funding to raise, based on our projected assets and contractual maturities.
Treasury and our independent risk oversight and control functions, along with our revenue-producing units, review current and prior period information and expectations for the year to prepare our balance sheet plan. The specific information reviewed includes asset and liability size and composition, limit utilization, risk and performance measures, and capital usage.
Our consolidated balance sheet plan, including our balance sheets by business, funding projections and projected key metrics, is reviewed and approved by the Firmwide Asset Liability Committee and the Risk Governance Committee. See “Risk Management — Overview and Structure of Risk Management” for an overview of our risk management structure.
Balance Sheet Limits.
The Firmwide Asset Liability Committee and the Risk Governance Committee have the responsibility to review and approve balance sheet limits. These limits are set at levels which are close to actual operating levels, rather than at levels which reflect our maximum risk appetite, in order to ensure prompt escalation and discussion among our revenue-producing units, Treasury and our independent risk oversight and control functions on a routine basis. Requests for changes in limits are evaluated after giving consideration to their impact on our key metrics. Compliance with limits is monitored by our revenue-producing units and Treasury, as well as our independent risk oversight and control functions.
Monitoring of Key Metrics.
We monitor key balance sheet metrics both by business and on a consolidated basis, including asset and liability size and composition, limit utilization and risk measures. We allocate assets to businesses and review and analyze movements resulting from new business activity, as well as market fluctuations.
Scenario Analyses.
We conduct various scenario analyses including as part of the Comprehensive Capital Analysis and Review (CCAR) and U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) Stress Tests (DFAST), as well as our resolution and recovery planning. See “Equity Capital Management and Regulatory Capital — Equity Capital Management” for further information about these scenario analyses. These scenarios cover short- and long-term time horizons using various macroeconomic and firm-specific assumptions, based on a range of economic scenarios. We use these analyses to assist us in developing our longer-term balance sheet management strategy, including the level and composition of assets, funding and equity capital. Additionally, these analyses help us develop approaches for maintaining appropriate funding, liquidity and capital across a variety of situations, including a severely stressed environment.
   
Goldman Sachs March 2020 Form 10-Q
 
114
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Balance Sheet Analysis and Metrics
As of March 2020, total assets in our consolidated balance sheets were $1.09 trillion, an increase of $96.79 billion from December 2019, primarily reflecting increases in customer and other receivables of $46.32 billion, collateralized agreements of $32.24 billion, trading assets of $20.14 billion, and loans of $19.55 billion, partially offset by a decrease in cash and cash equivalents of $28.06 billion. The increase in customer and other receivables primarily reflected higher client activity. The net increase in collateralized agreements reflected the impact of our activities and our clients’ activities. The increase in trading assets primarily reflected the impact of interest rate and currency movements in derivative instruments. The increase in loans primarily reflected an increase in corporate loans, partially offset by a decrease in residential real estate loans. The decrease in cash and cash equivalents primarily reflected our activities.
As of March 2020, total liabilities in our consolidated balance sheets were $997.38 billion, an increase of $94.67 billion from December 2019, primarily reflecting increases in customer and other payables of $38.36 billion, deposits of $29.98 billion and trading liabilities of $27.52 billion. The increase in customer and other payables primarily reflected higher client activity. The increase in deposits primarily reflected increases in consumer, institutional and transaction banking deposits. The increase in trading liabilities reflected the impact of interest rate and currency movements in derivative instruments.
Our total repurchase agreements, accounted for as collateralized financings, were $95.86 billion as of March 2020 and $117.76 billion as of December 2019, which were 12% lower as of March 2020 and 32% higher as of December 2019 than the average daily amount of repurchase agreements over the respective quarters. As of March 2020, the decrease in our repurchase agreements relative to the average daily amount of repurchase agreements during the quarter resulted from lower levels of our activity and our clients’ activity at the end of the period.
The level of our repurchase agreements fluctuates between and within periods, primarily due to providing clients with access to highly liquid collateral, such as liquid government and agency obligations, through collateralized financing activities.
The table below presents information about our balance sheet and leverage ratios.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Total assets
 
 
$1,089,756
 
  
$992,968
 
Unsecured long-term borrowings
 
 
$   225,476
 
  
$207,076
 
Total shareholders’ equity
 
 
$     92,379
 
  
$  90,265
 
Leverage ratio
 
 
11.8x
 
  
11.0x
 
Debt to equity ratio
 
 
2.4x
 
  
2.3x
 
In the table above:
 
•
The leverage ratio equals total assets divided by total shareholders’ equity and measures the proportion of equity and debt we use to finance assets. This ratio is different from the leverage ratios included in Note 20 to the consolidated financial statements.
 
•
The
debt-to-equity
ratio equals unsecured long-term borrowings divided by total shareholders’ equity.
The table below presents information about our shareholders’ equity and book value per common share, including the reconciliation of common shareholders’ equity to tangible common shareholders’ equity.
 
         
    
 
As of
 
         
$ in millions, except per share amounts
 
 
March
2020
 
  
December
2019
 
Total shareholders’ equity
 
 
$ 92,379
 
  
$ 90,265
 
Preferred stock
 
 
(11,203
)
  
(11,203
)
Common shareholders’ equity
 
 
81,176
 
  
79,062
 
Goodwill and identifiable intangible assets
 
 
(4,810
)
  
(4,837
)
Tangible common shareholders’ equity
 
 
$ 76,366
 
  
$ 74,225
 
 
Book value per common share
 
 
$ 228.21
 
  
$ 218.52
 
Tangible book value per common share
 
 
$ 214.69
 
  
$ 205.15
 
In the table above:
 
•
Tangible common shareholders’ equity is calculated as total shareholders’ equity less preferred stock, goodwill and identifiable intangible assets. We believe that tangible common shareholders’ equity is meaningful because it is a measure that we and investors use to assess capital adequacy. Tangible common shareholders’ equity is a
non-GAAP
measure and may not be comparable to similar
non-GAAP
measures used by other companies.
 
•
Book value per common share and tangible book value per common share are based on common shares outstanding and restricted stock units granted to employees with no future service requirements and not subject to performance conditions (collectively, basic shares) of 355.7 million as of March 2020 and 361.8 million as of December 2019. We believe that tangible book value per common share (tangible common shareholders’ equity divided by basic shares) is meaningful because it is a measure that we and investors use to assess capital adequacy. Tangible book value per common share is a
non-GAAP
measure and may not be comparable to similar
non-GAAP
measures used by other companies.
   
115
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Funding Sources
Our primary sources of funding are deposits, collateralized financings, unsecured short- and long-term borrowings, and shareholders’ equity. We seek to maintain broad and diversified funding sources globally across products, programs, markets, currencies and creditors to avoid funding concentrations.
The table below presents information about our funding sources.
 
                 
    
 
As of
 
       
$ in millions
 
March 2020
  
December 2019
 
Deposits
 
 
$219,994
 
 
 
31%
 
  
$190,019
   
28%
 
Collateralized financings
 
 
146,929
 
 
 
20%
 
  
152,018
   
22%
 
Unsecured short-term borrowings
 
 
37,148
 
 
 
5%
 
  
48,287
   
7%
 
Unsecured long-term borrowings
 
 
225,476
 
 
 
31%
 
  
207,076
   
30%
 
Total shareholders’ equity
 
 
92,379
 
 
 
13%
 
  
90,265
   
13%
 
Total
 
 
$721,926
 
 
 
100%
 
  
$687,665
   
100%
 
Our funding is primarily raised in U.S. dollar, Euro, British pound and Japanese yen. We generally distribute our funding products through our own sales force and third-party distributors to a large, diverse creditor base in a variety of markets in the Americas, Europe and Asia. We believe that our relationships with our creditors are critical to our liquidity. Our creditors include banks, governments, securities lenders, corporations, pension funds, insurance companies, mutual funds and individuals. We have imposed various internal guidelines to monitor creditor concentration across our funding programs.
Deposits.
Our deposits provide us with a diversified source of funding and reduce our reliance on wholesale funding. We raise deposits, including savings, demand and time deposits, from consumers and institutional clients, and through internal and third-party broker-dealers, as well as transaction banking channels. Our deposits are primarily raised through GS Bank USA and GSIB. See Note 13 to the consolidated financial statements for further information about our deposits.
Secured Funding.
We fund a significant amount of inventory and a portion of investments on a secured basis. Secured funding includes collateralized financings in the consolidated balance sheets. We may also pledge our inventory and investments as collateral for securities borrowed under a securities lending agreement. We also use our own inventory and investments to cover transactions in which we or our clients have sold securities that have not yet been purchased. Secured funding is less sensitive to changes in our credit quality than unsecured funding, due to our posting of collateral to our lenders. Nonetheless, we analyze the refinancing risk of our secured funding activities, taking into account trade tenors, maturity profiles, counterparty concentrations, collateral eligibility and counterparty rollover probabilities. We seek to mitigate our refinancing risk by executing term trades with staggered maturities, diversifying counterparties, raising excess secured funding and
pre-funding
residual risk through our GCLA.
We seek to raise secured funding with a term appropriate for the liquidity of the assets that are being financed, and we seek longer maturities for secured funding collateralized by asset classes that may be harder to fund on a secured basis, especially during times of market stress. Our secured funding, excluding funding collateralized by liquid government and agency obligations, is primarily executed for tenors of one month or greater and is primarily executed through term repurchase agreements and securities loaned contracts.
The weighted average maturity of our secured funding included in collateralized financings in the consolidated balance sheets, excluding funding that can only be collateralized by liquid government and agency obligations
and funding through participation in Federal Reserve facilities,
exceeded 120 days as of March 2020.
Assets that may be harder to fund on a secured basis during times of market stress include certain financial instruments in the following categories: mortgage and other asset-backed loans and securities,
non-investment-grade
corporate debt securities, equity securities and emerging market securities. Assets that are classified in level 3 of the fair value hierarchy are generally funded on an unsecured basis. See Notes 4 through 10 to the consolidated financial statements for further information about the classification of financial instruments in the fair value hierarchy and “Unsecured Long-Term Borrowings” below for further information about the use of unsecured long-term borrowings as a source of funding.
We also raise financing through other types of collateralized financings, such as secured loans and notes. GS Bank USA has access to funding from the Federal Home Loan Bank. Our outstanding borrowings against the Federal Home Loan Bank were $4.03 billion as of March 2020 and $527 million as of December 2019.
In an effort to mitigate the financial impact of the
COVID-19
pandemic, central banks around the world have taken aggressive measures to increase liquidity. In the U.S., the Federal Reserve has taken a broad set of actions to support the functioning of financial markets. These actions by the Federal Reserve include establishing a Primary Dealer Credit Facility, which permits broker dealers to borrow against a wide array of collateral, and creating a Money Market Mutual Fund Liquidity Facility, under which banks that purchase assets from money market mutual funds can pledge those assets on a nonrecourse basis to the Federal Reserve. The banking sector, including us, has acted in support of the financial system through active participation in the Federal Reserve’s initiatives.
   
Goldman Sachs March 2020 Form 10-Q
 
116
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
We also have access to funding through the Federal Reserve discount window. While we do not rely on this funding in our liquidity planning and stress testing, we accessed the Federal Reserve discount window during the first quarter of 2020, in line with the commitment announced alongside the nation’s other large banks. The discount window allows the Federal Reserve to lend directly to depository institutions to provide liquidity and stability to the banking system so that they can better serve their individual and corporate clients.
Unsecured Short-Term Borrowings.
A significant portion of our unsecured short-term borrowings was originally long-term debt that is scheduled to mature within one year of the reporting date. We use unsecured short-term borrowings, including U.S. and
non-U.S.
hybrid financial instruments, to finance liquid assets and for other cash management purposes. In light of regulatory developments, Group Inc. no longer issues debt with an original maturity of less than one year, other than to its subsidiaries. See Note 14 to the consolidated financial statements for further information about our unsecured short-term borrowings.
Unsecured Long-Term Borrowings.
Unsecured long-term borrowings, including structured notes, are raised through syndicated U.S. registered offerings, U.S. registered and Rule 144A medium-term note programs, offshore medium-term note offerings and other debt offerings. We issue in different tenors, currencies and products to maximize the diversification of our investor base.
The table below presents our quarterly unsecured long-term borrowings maturity profile.
 
                     
                     
$ in millions
 
 
First Quarter
 
 
 
Second Quarter
 
 
 
Third Quarter
 
 
 
Fourth Quarter
 
 
 
Total
 
As of March 2020
  
   
   
   
 
2021
 
 
$         –
 
 
 
$8,754
 
 
 
$8,019
 
 
 
$7,880
 
 
 
$  24,653
 
2022
 
 
$  6,692
 
 
 
$6,106
 
 
 
$6,222
 
 
 
$6,094
 
 
 
25,114
 
2023
 
 
$10,043
 
 
 
$6,241
 
 
 
$7,986
 
 
 
$4,337
 
 
 
28,607
 
2024
 
 
$  6,075
 
 
 
$4,049
 
 
 
$6,005
 
 
 
$3,033
 
 
 
19,162
 
2025
 
 
$  7,038
 
 
 
$8,044
 
 
 
$4,418
 
 
 
$4,220
 
 
 
23,720
 
2026 - thereafter
 
 
 
 
 
 
 
 
 
 
 
104,220
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$225,476
 
The weighted average maturity of our unsecured long-term borrowings as of March 2020 was approximately eight years. To mitigate refinancing risk, we seek to limit the principal amount of debt maturing over the course of any monthly, quarterly or annual time horizon. We enter into interest rate swaps to convert a portion of our unsecured long-term borrowings into floating-rate obligations to manage our exposure to interest rates. See Note 14 to the consolidated financial statements for further information about our unsecured long-term borrowings.
Shareholders’ Equity.
Shareholders’ equity is a stable and perpetual source of funding. See Note 19 to the consolidated financial statements for further information about our shareholders’ equity.
Equity Capital Management and Regulatory Capital
Capital adequacy is of critical importance to us. We have in place a comprehensive capital management policy that provides a framework, defines objectives and establishes guidelines to assist us in maintaining the appropriate level and composition of capital in both
business-as-usual
and stressed conditions.
Equity Capital Management
We determine the appropriate amount and composition of our equity capital by considering multiple factors, including our current and future regulatory capital requirements, the results of our capital planning and stress testing process, the results of resolution capital models and other factors, such as rating agency guidelines, subsidiary capital requirements, the business environment and conditions in the financial markets.
We manage our capital requirements and the levels of our capital usage principally by setting limits on the balance sheet and/or limits on risk, in each case at both the firmwide and business levels.
We principally manage the level and composition of our equity capital through issuances and repurchases of our common stock. We may also, from time to time, issue or repurchase our preferred stock, junior subordinated debt issued to trusts, and other subordinated debt or other forms of capital as business conditions warrant. Prior to any repurchases, we must receive confirmation that the Board of Governors of the Federal Reserve System (FRB) does not object to such capital action. See Notes 14 and 19 to the consolidated financial statements for further information about our preferred stock, junior subordinated debt issued to trusts and other subordinated debt.
Capital Planning and Stress Testing Process.
As part of capital planning, we project sources and uses of capital given a range of business environments, including stressed conditions. Our stress testing process is designed to identify and measure material risks associated with our business activities, including market risk, credit risk and operational risk, as well as our ability to generate revenues.
   
117
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Our capital planning process incorporates an internal capital adequacy assessment with the objective of ensuring that we are appropriately capitalized relative to the risks in our businesses. We incorporate stress scenarios into our capital planning process with a goal of holding sufficient capital to ensure we remain adequately capitalized after experiencing a severe stress event. Our assessment of capital adequacy is viewed in tandem with our assessment of liquidity adequacy and is integrated into our overall risk management structure, governance and policy framework.
Our stress tests incorporate our internally designed stress scenarios, including our internally developed severely adverse scenario, and those required under CCAR and DFAST, and are designed to capture our specific vulnerabilities and risks. We provide further information about our stress test processes and a summary of the results on our website as described in “Available Information.”
As required by the FRB’s CCAR rules, we submit an annual capital plan for review by the FRB. The purpose of the FRB’s review is to ensure that we have a robust, forward-looking capital planning process that accounts for our unique risks and that permits continued operation during times of economic and financial stress.
The FRB evaluates us based, in part, on whether we have the capital necessary to continue operating under the baseline and severely adverse scenarios provided by the FRB and those developed internally. This evaluation also takes into account our process for identifying risk, our controls and governance for capital planning, and our guidelines for making capital planning decisions. In addition, the FRB evaluates our plan to make capital distributions (i.e., dividend payments and repurchases or redemptions of stock, subordinated debt or other capital securities) and issue capital, across the range of macroeconomic scenarios and firm-specific assumptions.
With respect to our 2019 CCAR submission, the FRB informed us that it did not object to our capital plan, which includes the return of up to $8.8 billion of capital from the third quarter of 2019 through the second quarter of 2020 (2019 CCAR cycle). The capital plan provides for up to $7.0 billion in repurchases of outstanding common stock and $1.8 billion in total common stock dividends, including an increase in our common stock dividend from $0.85 to $1.25 per share in the third quarter of 2019. During the third and fourth quarters of 2019 and first quarter of 2020, we returned a total of $6.13 billion of capital, including stock repurchases of $4.76 billion and common stock dividends of $1.37 billion. Due to the current market conditions, we, along with other member banks of the Financial Services Forum, have voluntarily decided to temporarily suspend stock repurchases through the end of the 2019 CCAR cycle, and we will continue to evaluate our share repurchases for the remainder of 2020 as circumstances related to the COVID-19 pandemic evolve.
We published a summary of our annual DFAST results in June 2019. See “Available Information.” We submitted our 2020 CCAR capital plan in April 2020 and expect to publish a summary of our annual DFAST results in June 2020. The FRB also conducts its own annual stress tests and publishes a summary of certain results.
GS Bank USA has its own capital planning process, but was not required to conduct its annual stress test in 2019.
Goldman Sachs International (GSI) and GSIB also have their own capital planning and stress testing process, which incorporates internally designed stress tests and those required under the Prudential Regulation Authority’s (PRA) Internal Capital Adequacy Assessment Process.
   
Goldman Sachs March 2020 Form 10-Q
 
118
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Contingency Capital Plan.
As part of our comprehensive capital management policy, we maintain a contingency capital plan. Our contingency capital plan provides a framework for analyzing and responding to a perceived or actual capital deficiency, including, but not limited to, identification of drivers of a capital deficiency, as well as mitigants and potential actions. It outlines the appropriate communication procedures to follow during a crisis period, including internal dissemination of information, as well as timely communication with external stakeholders.
Capital Attribution.
We assess each of our businesses’ capital usage based on our internal assessment of risks, which incorporates an attribution of all of our relevant regulatory capital requirements. These regulatory capital requirements are allocated using our attributed equity framework, which takes into consideration our most binding capital constraints. Our most binding capital constraint is based on the results of the FRB’s annual stress test scenarios which include the Standardized risk-based capital and leverage ratios. See “Segment Assets and Operating Results — Segment Operating Results” for information about our attributed equity by segment.
Share Repurchase Program.
We use our share repurchase program to help maintain the appropriate level of common equity. The repurchase program is effected primarily through regular open-market purchases (which may include repurchase plans designed to comply with Rule
 10b5-1
and accelerated share repurchases), the amounts and timing of which are determined primarily by our current and projected capital position and our capital plan submitted to the FRB as part of CCAR. The amounts and timing of the repurchases may also be influenced by general market conditions and the prevailing price and trading volumes of our common stock.
On July 15, 2019, the Board of Directors of Group Inc. (Board) authorized the repurchase of an additional 50 million shares of common stock pursuant to our existing share repurchase program; however, we are only permitted to make repurchases to the extent that such repurchases have not been objected to by the FRB. As of March 2020, the remaining share authorization under our existing repurchase program was 49.7 million shares. See “Unregistered Sales of Equity Securities and Use of Proceeds” in Part II, Item 2 of this Form
 10-Q
and Note 19 to the consolidated financial statements for further information about our share repurchase program, and see above for information about our capital planning and stress testing process.
Resolution Capital Models.
In connection with our resolution planning efforts, we have established a Resolution Capital Adequacy and Positioning framework, which is designed to ensure that our major subsidiaries (GS Bank USA, Goldman Sachs & Co. LLC (GS&Co.), GSI, GSIB, Goldman Sachs Japan Co., Ltd. (GSJCL), Goldman Sachs Asset Management, L.P. and Goldman Sachs Asset Management International) have access to sufficient loss-absorbing capacity (in the form of equity, subordinated debt and unsecured senior debt) so that they are able to wind-down following a Group Inc. bankruptcy filing in accordance with our preferred resolution strategy.
In addition, we have established a triggers and alerts framework, which is designed to provide the Board with information needed to make an informed decision on whether and when to commence bankruptcy proceedings for Group Inc.
Rating Agency Guidelines
The credit rating agencies assign credit ratings to the obligations of Group Inc., which directly issues or guarantees substantially all of our senior unsecured debt obligations. GS&Co. and GSI have been assigned long-term and short-term issuer ratings by certain credit rating agencies. GS Bank USA and GSIB have also been assigned long-term and short-term issuer ratings, as well as ratings on their long-term and short-term bank deposits. In addition, credit rating agencies have assigned ratings to debt obligations of certain other subsidiaries of Group Inc.
The level and composition of our equity capital are among the many factors considered in determining our credit ratings. Each agency has its own definition of eligible capital and methodology for evaluating capital adequacy, and assessments are generally based on a combination of factors rather than a single calculation. See “Risk Management — Liquidity Risk Management — Credit Ratings” for further information about credit ratings of Group Inc., GS Bank USA, GSIB, GS&Co. and GSI.
   
119
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Consolidated Regulatory Capital
We are subject to consolidated regulatory capital requirements which are calculated in accordance with the regulations of the FRB (Capital Framework). Under the Capital Framework, we are an “Advanced approach” banking organization and have been designated as a global systemically important bank
(G-SIB).
The capital requirements calculated in accordance with the Capital Framework include the risk-based capital buffers and
G-SIB
surcharge. The risk-based capital buffers, applicable to us for 2020, include the capital conservation buffer of 2.5% and the countercyclical capital buffer, which the FRB has set to zero percent. In addition, the
G-SIB
surcharge applicable to us for 2020 is 2.5% based on 2018 financial data and 2.5% for 2021 based on 2019 financial data. Based on financial data for the three months ended March 2020, our current estimate is that we are above the threshold for the 3.0%
G-SIB
surcharge. We expect that our
G-SIB
surcharge may remain above the 3% threshold over the next three years. This increase would be effective on January 1 of the year that is one full calendar year after the increased
G-SIB
surcharge is finalized. The
G-SIB
surcharge and countercyclical buffer in the future may differ due to additional guidance from our regulators and/or positional changes. Our target CET1 capital ratio over the next three years is between 13.0% and 13.5% (including management buffers). This target reflects, among other things, our calculations based on the final stress capital buffer rule. See “Regulatory and Other Matters” for further information about the final rule.
See Note 20 to the consolidated financial statements for further information about our risk-based capital ratios and leverage ratios, and the Capital Framework.
TLAC
We are also subject to the FRB’s TLAC and related requirements. Failure to comply with the TLAC and related requirements could result in restrictions being imposed by the FRB and could limit our ability to repurchase shares, pay dividends and make certain discretionary compensation payments.
The table below presents TLAC and external long-term debt requirements.
 
     
     
 
 
Requirements
 
TLAC to RWAs
 
 
22.0%
 
TLAC to leverage exposure
 
 
9.5%
 
External long-term debt to RWAs
 
 
8.5%
 
External long-term debt to leverage exposure
 
 
4.5%
 
 
In the table above:
 
•
The TLAC to RWAs requirement includes (i) the 18% minimum, (ii) the 2.5% buffer, (iii) the 1.5%
G-SIB
surcharge (Method 1) and (iv) the countercyclical capital buffer, which the FRB has set to zero percent.
 
 
•
The TLAC to leverage exposure requirement includes (i) the 7.5% minimum and (ii) the 2.0% leverage exposure buffer. 
 
 
•
The external long-term debt to RWAs requirement includes (i) the 6% minimum and (ii) the 2.5%
G-SIB
surcharge (Method 2).
 
 
•
The external long-term debt to total leverage exposure is the 4.5% minimum.
 
The table below presents information about our TLAC and external long-term debt ratios.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
TLAC
 
 
$
  
 248,729
 
  
$   236,850
 
External long-term debt
 
 
$
  
 150,870
 
  
$   141,770
 
RWAs
 
 
$
  
 605,926
 
  
$   563,575
 
Leverage exposure
 
 
$1,438,866
 
  
$1,375,467
 
 
TLAC to RWAs
 
 
41.0%
 
  
42.0%
 
TLAC to leverage exposure
 
 
17.3%
 
  
17.2%
 
External long-term debt to RWAs
 
 
24.9%
 
  
25.2%
 
External long-term debt to leverage exposure
 
 
10.5%
 
  
10.3%
 
 
In the table above:
 
•
TLAC includes common and preferred stock, and eligible long-term debt issued by Group Inc. Eligible long-term debt represents unsecured debt, which has a remaining maturity of at least one year and satisfies additional requirements.
 
 
•
External long-term debt consists of eligible long-term debt subject to a haircut if it is due to be paid between one and two years.
 
 
•
RWAs represent Advanced RWAs as of March 2020 and Standardized RWAs as of December 2019. In accordance with the TLAC rules, the higher of Advanced or Standardized RWAs are used in the calculation of TLAC and external long-term debt ratios and applicable requirements.
 
 
•
Leverage exposure consists of average adjusted total assets and certain
off-balance
sheet exposures.
 
See “Business — Regulation” in Part I, Item 1 of the 2019 Form
 10-K
for further information about TLAC.
   
Goldman Sachs March 2020 Form 10-Q
 
120
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Subsidiary Capital Requirements
Many of our subsidiaries, including our bank and broker-dealer subsidiaries, are subject to separate regulation and capital requirements of the jurisdictions in which they operate.
Bank Subsidiaries.
GS Bank USA is our primary U.S. banking subsidiary and GSIB is our primary
non-U.S.
banking subsidiary. These entities are subject to regulatory capital requirements. See Note 20 to the consolidated financial statements for further information about the regulatory capital requirements of our bank subsidiaries.
U.S. Regulated Broker-Dealer Subsidiaries.
GS&Co. is our primary U.S. regulated broker-dealer subsidiary and is subject to regulatory capital requirements, including those imposed by the SEC and the Financial Industry Regulatory Authority, Inc. In addition, GS&Co. is a registered futures commission merchant and is subject to regulatory capital requirements imposed by the CFTC, the Chicago Mercantile Exchange and the National Futures Association. Rule
 15c3-1
of the SEC and Rule 1.17 of the CFTC specify uniform minimum net capital requirements, as defined, for their registrants, and also effectively require that a significant part of the registrants’ assets be kept in relatively liquid form. GS&Co. has elected to calculate its minimum capital requirements in accordance with the “Alternative Net Capital Requirement” as permitted by Rule
 15c3-1.
GS&Co. had regulatory net capital, as defined by Rule
 15c3-1,
of $18.66 billion as of March 2020 and $20.88 billion as of December 2019, which exceeded the amount required by $14.26 billion as of March 2020 and $18.15 billion as of December 2019. In addition to its alternative minimum net capital requirements, GS&Co. is also required to hold tentative net capital in excess of $1 billion and net capital in excess of $500 million in accordance with the market and credit risk standards of Appendix E of Rule
 15c3-1.
GS&Co. is also required to notify the SEC in the event that its tentative net capital is less than $5 billion. As of both March 2020 and December 2019, GS&Co. had tentative net capital and net capital in excess of both the minimum and the notification requirements.
 
Non-U.S. Regulated Broker-Dealer Subsidiaries.
Our principal
non-U.S.
regulated broker-dealer subsidiaries include GSI and GSJCL.
GSI, our U.K. broker-dealer, is regulated by the PRA and the Financial Conduct Authority (FCA).
GSI is subject to the capital framework for E.U.-regulated financial institutions prescribed in the E.U. Fourth Capital Requirements Directive and the E.U. Capital Requirements Regulation (CRR). These capital regulations are largely based on Basel III.
The table below presents GSI’s risk-based capital requirements.
 
         
    
 
As of
 
         
 
 
March
2020
 
  
December
2019
 
Risk-based capital requirements
 
 
 
  
 
CET1 capital ratio
 
 
8.5%
 
  
8.8%
 
Tier 1 capital ratio
 
 
10.5%
 
  
10.8%
 
Total capital ratio
 
 
13.1%
 
  
13.4%
 
 
In the table above, the risk-based capital requirements incorporate capital guidance received from the PRA and could change in the future. GSI’s future capital requirements may also be impacted by developments, such as the introduction of risk-based capital buffers.
The table below presents information about GSI’s risk-based capital ratios.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Risk-based
 capital and
 risk-weighted
 assets
 
 
 
  
 
CET1 capital
 
 
$  24,475
 
  
$
  
 24,142
 
Tier 1 capital
 
 
$  32,776
 
  
$
  
 32,442
 
Tier 2 capital
 
 
$    5,318
 
  
$
  
   5,374
 
Total capital
 
 
$  38,094
 
  
$
  
 37,816
 
RWAs
 
 
$236,840
 
  
$206,669
 
 
Risk-based capital ratios
 
 
 
  
 
CET1 capital ratio
 
 
10.3%
 
  
11.7%
 
Tier 1 capital ratio
 
 
13.8%
 
  
15.7%
 
Total capital ratio
 
 
16.1%
 
  
18.3%
 
 
In the table above, CET1 capital, Tier 1 capital and Total capital as of March 2020 excluded GSI’s undistributed profits from December 1, 2019 through March 31, 2020, as such profits have not yet been approved to be included as regulatory capital by the PRA.
In November 2016, the European Commission proposed amendments to the CRR to implement a 3% leverage ratio requirement for certain E.U. financial institutions. This leverage ratio compares the CRR’s definition of Tier 1 capital to a measure of leverage exposure, defined as the sum of certain assets plus certain
off-balance
sheet exposures (which include a measure of derivatives, securities financing transactions, commitments and guarantees), less Tier 1 capital deductions. The required leverage ratio is expected to become effective for GSI on June 28, 2021. GSI had a leverage ratio of 4.3% as of March 2020 and 4.6% as of December 2019. GSI’s leverage ratio as of March 2020 excluded GSI’s undistributed profits from December 1, 2019 through March 31, 2020, as such profits have not yet been approved to be included as regulatory capital by the PRA. This leverage ratio is based on our current interpretation and understanding of this rule and may evolve as we discuss the interpretation and application of this rule with GSI’s regulators.
   
121
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
GSI is also subject to a minimum requirement for own funds and eligible liabilities issued to affiliates. This requirement is subject to a transitional period which began to phase in from January 1, 2019 and will become fully effective on January 1, 2022. As of March 2020, GSI was in compliance with this requirement.
GSJCL, our Japanese broker-dealer, is regulated by Japan’s Financial Services Agency. GSJCL and certain other
non-U.S.
subsidiaries are also subject to capital requirements promulgated by authorities of the countries in which they operate. As of both March 2020 and December 2019, these subsidiaries were in compliance with their local capital requirements.
Regulatory and Other Matters
Regulatory Matters
Our businesses are subject to extensive regulation and supervision worldwide. Regulations have been adopted or are being considered by regulators and policy makers worldwide. Given that many of the new and proposed rules are highly complex, the full impact of regulatory reform will not be known until the rules are implemented and market practices develop under the final regulations.
Stress Capital Buffer.
In March 2020, the FRB released the stress capital buffer final
rule, and it will begin to apply on October 1, 2020. In accordance with the final rule, our Standardized capital ratio requirements will include the stressed capital buffer, which will be measured as the difference between the starting and lowest projected CET1 capital ratio in the supervisory severely adverse stress scenario, as calculated by the FRB, including four quarters of planned common stock dividends, subject to a 2.5% floor. Under the rule, stress leverage requirements, as calculated by the FRB, have been eliminated.
Leverage Ratios.
In April 2020, the FRB released an interim final rule that provides an option for depository institution holding companies, such as Group Inc., to exclude U.S. Treasury securities holdings and deposits at the Federal Reserve from the calculation of total leverage exposure beginning April 1, 2020 through March 31, 2021. We have elected to exclude such instruments from our calculation of supplementary leverage ratio and TLAC leverage requirement for the applicable period.
See “Business — Regulation” in Part I, Item 1 of the 2019 Form
 10-K
for further information about the laws, rules and regulations and proposed laws, rules and regulations that apply to us and our operations.
Other Matters
Brexit.
In March 2017, the U.K. government commenced the formal proceedings to withdraw from the E.U.
The E.U. and the U.K. agreed to a withdrawal agreement (the Withdrawal Agreement), which became effective on January 31, 2020. The transition period under the Withdrawal Agreement will last until the end of December 2020 to allow the two sides to negotiate a future trade agreement. During the transition period, the U.K. will be treated as if it were a member state of the E.U. and therefore the existing arrangements between the U.K. and the E.U. will not change. The Withdrawal Agreement provides for the possibility of an extension of the transition period for either one or two more years. However, the U.K. has pledged not to extend the transition period beyond December 31, 2020.
Based upon the existing
non-E.U.
country equivalence regimes, the E.U. and the U.K. have agreed to complete their assessments of equivalence by the end of June 2020. There is significant uncertainty as to the outcome of those assessments. We are monitoring the ongoing development related to Brexit and continue to prepare for a scenario where the U.K. financial services firms will lose access to E.U. markets on December 31, 2020 (a “hard” Brexit) while ensuring we remain flexible and well positioned to allow our clients to benefit from any more favorable scenarios. Our planning also recognizes that after the end of the transition period, we can rely on a degree of continuing access for our U.K. entities pursuant to national cross-border access regimes in certain jurisdictions (for example, based on specific licenses or exemptions). See “Regulatory Matters and Other Developments — Other Developments” in Part II, Item 7 of the 2019 Form
 10-K
for further information about our plan to manage a hard Brexit scenario.
Replacement of Interbank Offered Rates (IBORs), including LIBOR.
Central banks and regulators in a number of major jurisdictions (for example, U.S., U.K., E.U., Switzerland and Japan) have convened working groups to find, and implement the transition to, suitable replacements for IBORs. The FCA, which regulates LIBOR, has announced that it will not compel panel banks to contribute to LIBOR after 2021. In addition, in light of
COVID-19,
the FCA, alongside the Bank of England and the members of the Working Group on Sterling Risk-Free Reference Rates, issued a statement reaffirming that firms cannot rely on LIBOR being published after 2021. Accordingly, we continue to make progress on our LIBOR transition program in line with this deadline.
   
Goldman Sachs March 2020 Form 10-Q
 
122
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
We have created a program that focuses on achieving an orderly transition from IBORs to alternative risk-free reference rates for us and our clients. As part of this transition, we continue to actively engage with our regulators and clients, as well as participate in central bank and sector working groups. We have issued debt and deposits linked to the Secured Overnight Financing Rate (SOFR) and Sterling Overnight Index Average (SONIA) and have executed SOFR- and SONIA-based derivative contracts to make markets and facilitate client activities. Where possible, we continue to execute transactions in the market to reduce our LIBOR exposures arising from hedges to our fixed-rate debt issuances and replace with alternative risk-free reference rates exposures. See “Regulatory Matters and Other Developments — Other Developments” in Part II, Item 7 of the 2019 Form
 10-K
for further information about our transition program.
Impact of COVID-19 Pandemic.
The
COVID-19
pandemic has resulted in governments around the world implementing a broad suite of measures to help control the spread of the virus, including, among others, quarantines, travel restrictions and business curtailments.
In response to the
COVID-19
pandemic, we activated and successfully executed on our BCP strategy. Our priority has been to safeguard our employees and to seek to ensure continuity of business operations on behalf of our clients. We have a central team that manages our
COVID-19
response, which is led by our chief administrative officer and chief medical officer, and includes senior management within Risk and the chief operating officers across all regions and businesses. As a result of our BCP plan, nearly all of our employees are working remotely. Our systems and infrastructure have continued to support the increased volumes of activity. We implemented a heightened level of communication across senior management and among senior management, the rest of our employees and the Board of Directors. Real-time information sharing and decision-making are occurring through a variety of senior management meetings. Our Management Committee and other senior leaders have multiple standing meetings on a daily and weekly basis. Our executive officers have provided regular and enhanced communications to promote connectivity with our clients and employees worldwide. Furthermore, we have proactively engaged with our vendors on a regular basis in connection with our efforts to ensure they continue to meet our criteria for business continuity. 
The adverse impacts of
COVID-19
on financial markets has led central banks to take aggressive steps to increase liquidity. At the encouragement of the Federal Reserve, the banking sector, including us, has utilized a variety of facilities to help clients access financing to support their businesses. We will continue to evaluate our level of participation in these facilities and any new facilities or programs that become available. We have also decided to temporarily suspend share buybacks through the second quarter of 2020. As we make capital return decisions beyond the second quarter of 2020, we will continue to assess what is needed for reinvestment and to support our clients. Another action we took during the first quarter of 2020 was the purchase by GS Bank USA of short-term debt securities, primarily certificates of deposit, from two money market funds that we manage, which are not covered by the Volcker Rule. GS Bank USA’s purchase price of $1.84 billion represented the fair value of these securities, which also closely approximated their face values. These purchases were made to promote liquidity in the short-term credit markets and to increase the funds’ weekly liquid assets.
Our liquidity position during the first quarter of 2020 remained strong. We maintained an average GCLA of $243 billion for the first quarter of 2020, an increase of $6 billion compared with the fourth quarter of 2019. Our deposits increased by $30 billion to $220 billion compared with December 2019. In addition, we also issued unsecured vanilla debt of $15.7 billion during the first quarter of 2020. Our capital ratios declined during the first quarter of 2020, primarily driven by balance sheet growth to support clients amid increased activity and demand for risk intermediation, but remained in excess of our minimum requirements. See “Balance Sheet and Funding Sources,” “Equity Capital Management and Regulatory Capital” and “Liquidity Risk Management” for further information.
The valuation of financial instruments and determination of the provision for credit losses are more difficult when severe economic and market shocks occur. Recent market conditions, characterized by dislocations between asset prices, higher volatility, reduced price transparency and a deterioration in the creditworthiness of borrowers have made it more challenging to determine the fair value of some of our financial assets and liabilities and the provision for credit losses. The current circumstances have required greater use of judgment, and in the case of financial instruments accounted for at fair value, have contributed to an increase in level 3 balances. See Note 4 to the consolidated financial statements for further information about fair value measurements and Note 9 to the consolidated financial statements for further information about the provision for credit losses.
   
123
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
As a result of the dramatic change in the macroeconomic environment since we last performed a goodwill impairment test in the fourth quarter of 2019, we assessed goodwill for impairment as of March 2020 and determined that it was not impaired. See Note 12 to the consolidated financial statements for further information about goodwill.
Over the latter part of the first quarter of 2020, financial markets experienced a spike in volatility as concerns over the spread of
COVID-19
intensified. Clients sought to reduce risk exposures, resulting in a significant increase in transaction volumes. Our average daily VaR for the first quarter of 2020 was $81 million, an increase of $26 million compared to March 2019, reflecting, among other things, the role that we have played as a risk intermediary for our clients in the current challenging environment. Throughout the crisis, our approach to managing market risk levels has been proactive, involving ongoing review and monitoring of exposures and risk mitigation opportunities. In addition, the sharp decline in economic activity as the pandemic became more acute has increased credit risk in general and particularly with regard to companies in industries that have been most severely impacted by the economic disruption, including oil and gas, gaming and lodging, and airlines. During the first quarter of 2020, we had approximately $19 billion in drawdowns on committed corporate credit lines in our relationship lending business, which was below the amount that was
pre-funded
based on our liquidity models. Given the stresses on clients’ liquidity, we have elevated our approach to credit risk management, with an increased focus on monitoring of credit exposures and management of margin calls and disputes. Our risk positions remained balanced, controlled and adequately provisioned for, both in terms of counterparty risk and sector exposure. See “Market Risk Management” and “Credit Risk Management” for further information.
Our response to
COVID-19
has involved a number of actions and initiatives aimed at providing support to our clients, employees, vendors and communities. See “Executive Overview” for further information.
The
COVID-19
pandemic has created significant uncertainty regarding the operating environment for the remainder of 2020 and possibly longer, as the duration and future course of the pandemic cannot be predicted at this time. A sustained period of weak economic conditions as a result of the pandemic would be detrimental to our businesses as it would negatively affect factors that are important to our operating performance, such as the level of client activity, creditworthiness of counterparties and borrowers, and the amount of our assets under supervision. We are monitoring the ongoing developments related to
COVID-19
and will take further action as may be required by government authorities or that we determine are in the best interests of our employees, clients and counterparties. For further information about the risks associated with
COVID-19,
see “Risk Factors” in Part II, Item 1A.
Off-Balance
Sheet Arrangements and Contractual Obligations
Off-Balance
Sheet Arrangements
In the ordinary course of business, we enter into various types of
off-balance
sheet arrangements. Our involvement in these arrangements can take many different forms, including:
 
•
Purchasing or retaining residual and other interests in special purpose entities, such as mortgage-backed and other asset-backed securitization vehicles;
 
•
Holding senior and subordinated debt, interests in limited and general partnerships, and preferred and common stock in other nonconsolidated vehicles;
 
•
Entering into interest rate, foreign currency, equity, commodity and credit derivatives, including total return swaps; and
 
•
Providing guarantees, indemnifications, commitments, letters of credit and representations and warranties.
We enter into these arrangements for a variety of business purposes, including securitizations. The securitization vehicles that purchase mortgages, corporate bonds, and other types of financial assets are critical to the functioning of several significant investor markets, including the mortgage-backed and other asset-backed securities markets, since they offer investors access to specific cash flows and risks created through the securitization process.
We also enter into these arrangements to underwrite client securitization transactions; provide secondary market liquidity; make investments in performing and nonperforming debt, distressed loans, power-related assets, equity securities, real estate and other assets; provide investors with credit-linked and asset-repackaged notes; and receive or provide letters of credit to satisfy margin requirements and to facilitate the clearance and settlement process.
   
Goldman Sachs March 2020 Form 10-Q
 
124
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
The table below presents where information about our various
off-balance
sheet arrangements may be found in this Form
 10-Q.
In addition, see Note 3 to the consolidated financial statements for information about our consolidation policies.
 
     
     
Off-Balance
Sheet Arrangement
 
      
 
Disclosure in Form
 10-Q
 
Variable interests and other obligations, including contingent obligations, arising from variable interests in nonconsolidated variable interest entities (VIEs)
 
 
 
 
See Note 17 to the consolidated financial statements.
 
Guarantees, letters of credit, and lending and other commitments
 
 
 
 
See Note 18 to the consolidated financial statements.
 
 
Derivatives
 
 
 
See “Risk Management — Credit Risk Management — Credit Exposures — OTC Derivatives” and Notes 4, 5, 7 and 18 to the consolidated financial statements.
 
Contractual Obligations
We have certain contractual obligations which require us to make future cash payments. These contractual obligations include our time deposits, secured long-term financings, unsecured long-term borrowings, interest payments and operating lease payments.
Our obligations to make future cash payments also include our commitments and guarantees related to
off-balance
sheet arrangements, which are excluded from the table below. See Note 18 to the consolidated financial statements for further information about such commitments and guarantees.
Due to the uncertainty of the timing and amounts that will ultimately be paid, our liability for unrecognized tax benefits has been excluded from the table below. See Note 24 to the consolidated financial statements for further information about our unrecognized tax benefits.
The table below presents our contractual obligations by type.
 
         
    
 
As of
 
         
$ in millions
 
 
March
2020
 
  
December
2019
 
Time deposits
 
 
$  32,466
 
  
$  32,273
 
Financings and borrowings:
 
 
 
  
 
Secured long-term
 
 
$  13,100
 
  
$  11,953
 
Unsecured long-term
 
 
$225,476
 
  
$207,076
 
Interest payments
 
 
$  49,992
 
  
$  47,649
 
Operating lease payments
 
 
$    3,828
 
  
$    3,980
 
The table below presents our contractual obligations by expiration.
 
                 
    
 
As of March 2020
 
                 
$ in millions
 
 
Remainder
of 2020
 
 
 
2021 -
2022
 
 
 
2023 -
2024
 
 
 
2025 -
Thereafter
 
Time deposits
 
 
$       –
 
 
 
$16,092
 
 
 
$11,118
 
 
 
$    5,256
 
Financings and borrowings:
 
 
 
 
 
 
 
 
 
 
 
 
Secured long-term
 
 
$       –
 
 
 
$  6,049
 
 
 
$  3,096
 
 
 
$    3,955
 
Unsecured long-term
 
 
$       –
 
 
 
$49,767
 
 
 
$47,769
 
 
 
$127,940
 
Interest payments
 
 
$4,759
 
 
 
$11,646
 
 
 
$  8,243
 
 
 
$  25,344
 
Operating lease payments
 
 
$
  
 247
 
 
 
$
  
   573
 
 
 
$     451
 
 
 
$    2,557
 
In the table above:
 
•
Obligations maturing within one year of our financial statement date or redeemable within one year of our financial statement date at the option of the holders are excluded as they are treated as short-term obligations. See Note 14 to the consolidated financial statements for further information about our short-term borrowings.
 
•
Obligations that are repayable prior to maturity at our option are reflected at their contractual maturity dates and obligations that are redeemable prior to maturity at the option of the holders are reflected at the earliest dates such options become exercisable.
 
•
As of March 2020, unsecured long-term borrowings had maturities extending through 2067, consisted principally of senior borrowings, and included $13.76 billion of adjustments to the carrying value of certain unsecured long-term borrowings resulting from the application of hedge accounting. See Note 14 to the consolidated financial statements for further information about our unsecured long-term borrowings.
 
•
As of March 2020, the aggregate contractual principal amount of long-term other secured financings for which the fair value option was elected exceeded the related fair value by $546 million.
 
•
As of March 2020, the aggregate contractual principal amount of unsecured long-term borrowings for which the fair value option was elected exceeded the related fair value by $823 million.
 
•
Interest payments represents estimated future contractual interest payments related to unsecured long-term borrowings, secured long-term financings and time deposits based on applicable interest rates as of March 2020, and includes stated coupons, if any, on structured notes.
 
•
Operating lease payments includes lease commitments for office space that expire on various dates through 2069. Certain agreements are subject to periodic escalation provisions for increases in real estate taxes and other charges. See Note 15 to the consolidated financial statements for further information about our operating lease liabilities.
   
125
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Risk Management
Risks are inherent in our businesses and include liquidity, market, credit, operational, model, legal, compliance, conduct, regulatory and reputational risks. Our risks include the risks across our risk categories, regions or global businesses, as well as those which have uncertain outcomes and have the potential to materially impact our financial results, our liquidity and our reputation. For further information about our risk management processes, see “Overview and Structure of Risk Management,” and for information about our areas of risk, see “Liquidity Risk Management,” “Market Risk Management,” “Credit Risk Management,” “Operational Risk Management” and “Model Risk Management” and “Risk Factors” in Part II, Item 1A of this Form
 10-Q
and in Part I, Item 1A of the 2019 Form
 10-K.
Overview and Structure of Risk Management
Overview
We believe that effective risk management is critical to our success. Accordingly, we have established an enterprise risk management framework that employs a comprehensive, integrated approach to risk management, and is designed to enable comprehensive risk management processes through which we identify, assess, monitor and manage the risks we assume in conducting our activities. Our risk management structure is built around three core components: governance, processes and people.
Governance.
Risk management governance starts with the Board, which both directly and through its committees, including its Risk Committee, oversees our risk management policies and practices implemented through the enterprise risk management framework. The Board is also responsible for the annual review and approval of our risk appetite statement. The risk appetite statement describes the levels and types of risk we are willing to accept or to avoid, in order to achieve our objectives included in our strategic business plan, while remaining in compliance with regulatory requirements. The Board reviews our strategic business plan and is ultimately responsible for overseeing and providing direction about our strategy and risk appetite.
The Board receives regular briefings on firmwide risks, including liquidity risk, market risk, credit risk, operational risk and model risk from our independent risk oversight and control functions, including the chief risk officer, and on compliance risk and conduct risk from Compliance, on legal and regulatory enforcement matters from the general counsel, and on other matters impacting our reputation from the chair of our Firmwide Client and Business Standards Committee and our Firmwide Reputational Risk Committee. The chief risk officer reports to our chief executive officer and to the Risk Committee of the Board. As part of the review of the firmwide risk portfolio, the chief risk officer regularly advises the Risk Committee of the Board of relevant risk metrics and material exposures, including risk limits and thresholds established in our risk appetite statement.
The implementation of our risk governance structure and core risk management processes are overseen by Enterprise Risk, which reports to our chief risk officer, and is responsible for ensuring that our enterprise risk management framework provides the Board, our risk committees and senior management with a consistent and integrated approach to managing our various risks in a manner consistent with our risk appetite.
Our revenue-producing units, as well as Treasury, Engineering, Human Capital Management, Operations and Services, are considered our first line of defense. They are accountable for the outcomes of our risk-generating activities, as well as for assessing and managing those risks within our risk appetite.
Our independent risk oversight and control functions are considered our second line of defense and provide independent assessment, oversight and challenge of the risks taken by our first line of defense, as well as lead and participate in risk committees. Independent risk oversight and control functions include Compliance, Conflicts Resolution, Controllers, Credit Risk, Enterprise Risk, Legal, Liquidity Risk, Market Risk, Model Risk, Operational Risk and Tax.
Internal Audit is considered our third line of defense and reports to the Audit Committee of the Board and administratively to our chief executive officer. Internal Audit includes professionals with a broad range of audit and industry experience, including risk management expertise. Internal Audit is responsible for independently assessing and validating the effectiveness of key controls, including those within the risk management framework, and providing timely reporting to the Audit Committee of the Board, senior management and regulators.
The three lines of defense structure promotes the accountability of first line risk takers, provides a framework for effective challenge by the second line and empowers independent review from the third line.
   
Goldman Sachs March 2020 Form 10-Q
 
126
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Processes.
We maintain various processes that are critical components of our risk management framework, including (i) risk identification and assessment, (ii) risk appetite, limit and threshold setting, (iii) risk reporting and monitoring, and (iv) risk decision-making.
 
•
Risk Identification and Assessment.
We believe that the identification and assessment of our risks is a critical step in providing our Board and senior management transparency and insight into the range and materiality of our risks. We have a comprehensive data collection process, including firmwide policies and procedures that require all employees to report and escalate risk events. Our approach for risk identification and assessment is comprehensive across all risk types, is dynamic and forward-looking to reflect and adapt to our changing risk profile and business environment, leverages subject matter expertise, and allows for prioritization of our most critical risks.
To effectively assess our risks, we maintain a daily discipline of marking substantially all of our inventory to current market levels. We carry our inventory at fair value, with changes in valuation reflected immediately in our risk management systems and in net revenues. We do so because we believe this discipline is one of the most effective tools for assessing and managing risk and that it provides transparent and realistic insight into our inventory exposures.
An important part of our risk management process is firmwide stress testing. It allows us to quantify our exposure to tail risks, highlight potential loss concentrations, undertake risk/reward analysis, and assess and mitigate our risk positions. Firmwide stress tests are performed on a regular basis and are designed to ensure a comprehensive analysis of our vulnerabilities and idiosyncratic risks combining financial and nonfinancial risks, including, but not limited to, credit, market, liquidity and funding, operational and compliance, strategic, systemic and emerging risks into a single combined scenario. We also perform ad hoc stress tests in anticipation of market events or conditions. Stress tests are also used to assess capital adequacy as part of our capital planning and stress testing process. See “Equity Capital Management and Regulatory Capital — Equity Capital Management” for further information.
•
Risk Appetite, Limit and Threshold Setting.
We apply a rigorous framework of limits and thresholds to control and monitor risk across transactions, products, businesses and markets. The Board, directly or indirectly through its Risk Committee, approves limits and thresholds included in our risk appetite statement at firmwide, business and product levels. In addition, the Firmwide Enterprise Risk Committee is responsible for approving our risk limits framework, subject to the overall limits approved by the Risk Committee of the Board, and monitoring these limits.
The Risk Governance Committee is responsible for approving limits at firmwide, business and product levels. Certain limits may be set at levels that will require periodic adjustment, rather than at levels that reflect our maximum risk appetite. This fosters an ongoing dialogue about risk among our first and second lines of defense, committees and senior management, as well as rapid escalation of
risk-related
matters. Additionally, through delegated authority from the Risk Governance Committee, Market Risk sets limits at certain product and desk levels, and Credit Risk sets limits for individual counterparties, counterparties and their subsidiaries, industries and countries. Limits are reviewed regularly and amended on a permanent or temporary basis to reflect changing market conditions, business conditions or risk tolerance.
 
•
Risk Reporting and Monitoring.
Effective risk reporting and risk decision-making depends on our ability to get the right information to the right people at the right time. As such, we focus on the rigor and effectiveness of our risk systems, with the objective of ensuring that our risk management technology systems provide us with complete, accurate and timely information. Our risk reporting and monitoring processes are designed to take into account information about both existing and emerging risks, thereby enabling our risk committees and senior management to perform their responsibilities with the appropriate level of insight into risk exposures. Furthermore, our limit and threshold breach processes provide means for timely escalation.
We evaluate changes in our risk profile and our businesses, including changes in business mix or jurisdictions in which we operate, by monitoring risk factors at a firmwide level.
   
127
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
•
Risk Decision-Making.
Our governance structure provides the protocol and responsibility for
decision-making
on risk management issues and ensures implementation of those decisions. We make extensive use of risk committees that meet regularly and serve as an important means to facilitate and foster ongoing discussions to manage and mitigate risks.
We maintain strong and proactive communication about risk and we have a culture of collaboration in decision-making among our first and second lines of defense, committees and senior management. While our first line of defense is responsible for management of their risk, we dedicate extensive resources to our second line of defense in order to ensure a strong oversight structure and an appropriate segregation of duties. We regularly reinforce our strong culture of escalation and accountability across all functions.
People.
Even the best technology serves only as a tool for helping to make informed decisions in real time about the risks we are taking. Ultimately, effective risk management requires our people to interpret our risk data on an ongoing and timely basis and adjust risk positions accordingly. The experience of our professionals, and their understanding of the nuances and limitations of each risk measure, guides us in assessing exposures and maintaining them within prudent levels.
We reinforce a culture of effective risk management, consistent with our risk appetite, in our training and development programs, as well as in the way we evaluate performance, and recognize and reward our people. Our training and development programs, including certain sessions led by our most senior leaders, are focused on the importance of risk management, client relationships and reputational excellence. As part of our annual performance review process, we assess reputational excellence, including how an employee exercises good risk management and reputational judgment, and adheres to our code of conduct and compliance policies. Our review and reward processes are designed to communicate and reinforce to our professionals the link between behavior and how people are recognized, the need to focus on our clients and our reputation, and the need to always act in accordance with our highest standards.
Structure
Ultimate oversight of risk is the responsibility of our Board. The Board oversees risk both directly and through its committees, including its Risk Committee. We have a series of committees with specific risk management mandates that have oversight or decision-making responsibilities for risk management activities. Committee membership generally consists of senior managers from both our first and second lines of defense. We have established procedures for these committees to ensure that appropriate information barriers are in place. Our primary risk committees, most of which also have additional
sub-committees
or working groups, are described below. In addition to these committees, we have other risk committees that provide oversight for different businesses, activities, products, regions and entities. All of our committees have responsibility for considering the impact of transactions and activities, which they oversee, on our reputation.
Membership of our risk committees is reviewed regularly and updated to reflect changes in the responsibilities of the committee members. Accordingly, the length of time that members serve on the respective committees varies as determined by the committee chairs and based on the responsibilities of the members.
The chart below presents an overview of our risk management governance structure.
 
Management Committee.
The Management Committee oversees our global activities. It provides this oversight directly and through authority delegated to committees it has established. This committee consists of our most senior leaders, and is chaired by our chief executive officer. Most members of the Management Committee are also members of other committees. The following are the committees that are principally involved in firmwide risk management.
   
Goldman Sachs March 2020 Form 10-Q
 
128
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Firmwide Enterprise Risk Committee.
The Firmwide Enterprise Risk Committee is responsible for overseeing all of our financial and nonfinancial risks. As a part of such oversight, the committee is responsible for the ongoing review, approval and monitoring of our enterprise risk management framework, as well as our risk limits framework. This committee is
co-chaired
by our chief financial officer and our chief risk officer, who are appointed as chairs by our chief executive officer, and reports to the Management Committee. The following are the primary committees that report to the Firmwide Enterprise Risk Committee:
 
•
Firmwide Risk Committee.
The Firmwide Risk Committee is responsible for the ongoing monitoring of relevant financial risks and related risk limits at the firmwide, business and product levels. This committee is
co-chaired
by the chairs of the Firmwide Enterprise Risk Committee.
 
•
Firmwide New Activity Committee.
The Firmwide New Activity Committee is responsible for reviewing new activities and for establishing a process to identify and review previously approved activities that are significant and that have changed in complexity and/or structure or present different reputational and suitability concerns over time to consider whether these activities remain appropriate. This committee is
co-chaired
by the controller and chief accounting officer, and the head of Operations and Operations Engineering for the Global Markets Division, who are appointed as chairs by the chairs of the Firmwide Enterprise Risk Committee.
 
•
Firmwide Operational Risk and Resilience Committee.
The Firmwide Operational Risk and Resilience Committee is responsible for overseeing operational risk, and for ensuring our business and operational resilience. To assist the Firmwide Operational Risk and Resilience Committee in carrying out its mandate, other risk committees with dedicated oversight for technology-related risks, including cyber security matters, report into the Firmwide Operational Risk and Resilience Committee. This committee is
co-chaired
by our chief administrative officer and deputy chief risk officer, who are appointed as chairs by the chairs of the Firmwide Enterprise Risk Committee.
•
Firmwide Conduct Committee.
The Firmwide Conduct Committee is responsible for the ongoing approval and monitoring of the frameworks and policies which govern our conduct risks. Conduct risk is the risk that our people fail to act in a manner consistent with our Business Principles and related core values, policies or codes, or applicable laws or regulations, thereby falling short in fulfilling their responsibilities to us, our clients, colleagues, other market participants or the broader community. The
co-chairs
of this committee are appointed by the chairs of the Firmwide Enterprise Risk Committee.
 
•
Risk Governance Committee.
The Risk Governance Committee (through delegated authority from the Firmwide Enterprise Risk Committee) is responsible for the ongoing approval and monitoring of risk frameworks and policies related to our core risk management processes, as well as limits, at firmwide, business and product levels. In addition, this committee reviews the results of stress tests and scenario analyses. To assist the Risk Governance Committee in carrying out its mandate, a number of other risk committees with dedicated oversight for stress testing, model risks and Volcker Rule compliance report into the Risk Governance Committee. This committee is chaired by our chief risk officer, who is appointed as chair by the chairs of the Firmwide Enterprise Risk Committee.
Firmwide Client and Business Standards Committee
.
The Firmwide Client and Business Standards Committee is responsible for overseeing relationships with our clients, client service and experience, and related business standards, as well as client-related reputational matters. This committee is chaired by our president and chief operating officer, who is appointed as chair by the chief executive officer, and reports to the Management Committee. This committee periodically provides updates to, and receives guidance from, the Public Responsibilities Committee of the Board.
   
129
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
The following committees report jointly to the Firmwide Enterprise Risk Committee and the Firmwide Client and Business Standards Committee:
 
•
Firmwide Reputational Risk Committee.
The Firmwide Reputational Risk Committee is responsible for assessing reputational risks arising from transactions that have been identified as having potential heightened reputational risk pursuant to the criteria established by the Firmwide Reputational Risk Committee. This committee is chaired by our president and chief operating officer, and the vice-chairs are the head of Regulatory Affairs and the head of Conflicts Resolution, who are appointed as vice-chairs by the chair of the Firmwide Reputational Risk Committee. This committee periodically provides updates to, and receives guidance from, the Public Responsibilities Committee of the Board.
 
•
Firmwide Suitability Committee.
The Firmwide Suitability Committee is responsible for setting standards and policies for product, transaction and client suitability and providing a forum for consistency across functions, regions and products on suitability assessments. This committee also reviews suitability matters escalated from other committees. This committee is
co-chaired
by our chief compliance officer, and the
co-head
of EMEA FICC sales, who are appointed as chairs by the chair of the Firmwide Client and Business Standards Committee.
 
•
Firmwide Investment Policy Committee.
The Firmwide Investment Policy Committee reviews, approves, sets policies, and provides oversight for certain illiquid principal investments, including review of risk management and controls for these types of investments. This committee is
co-chaired
by the chairman of our Merchant Banking Division, the head of our Merchant Banking Division and the chief risk officer, who are appointed as chairs by our president and chief operating officer and our chief financial officer.
 
•
Firmwide Capital Committee.
The Firmwide Capital Committee provides approval and oversight of debt-related transactions, including principal commitments of our capital. This committee aims to ensure that business, reputational and suitability standards for underwritings and capital commitments are maintained on a global basis. This committee is
co-chaired
by the head of Credit Risk and a
co-head
of the Financing Group, who are appointed as chairs by the chairs of the Firmwide Enterprise Risk Committee.
•
Firmwide Commitments Committee.
The Firmwide Commitments Committee reviews our underwriting and distribution activities with respect to equity and equity-related product offerings, and sets and maintains policies and procedures designed to ensure that legal, reputational, regulatory and business standards are maintained on a global basis. In addition to reviewing specific transactions, this committee periodically conducts general strategic reviews of sectors and products and establishes policies in connection with transaction practices. This committee is
co-chaired
by the
co-head
of the Industrials Group in our Investment Banking Division, the chief debt underwriting officer for EMEA, and a managing director in our Investment Banking Division, who are appointed as chairs by the chair of the Firmwide Client and Business Standards Committee.
Firmwide Asset Liability Committee.
The Firmwide Asset Liability Committee reviews and approves the strategic direction for our financial resources, including capital, liquidity, funding and balance sheet. This committee has oversight responsibility for asset liability management, including interest rate and currency risk, funds transfer pricing, capital allocation and incentives, and credit ratings. This committee makes recommendations as to any adjustments to asset liability management and financial resource allocation in light of current events, risks, exposures, and regulatory requirements and approves related policies. This committee is
co-chaired
by our chief financial officer and our global treasurer, who are appointed as chairs by our chief executive officer, and reports to the Management Committee.
   
Goldman Sachs March 2020 Form 10-Q
 
130
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Conflicts Management
Conflicts of interest and our approach to dealing with them are fundamental to our client relationships, our reputation and our long-term success. The term “conflict of interest” does not have a universally accepted meaning, and conflicts can arise in many forms within a business or between businesses. The responsibility for identifying potential conflicts, as well as complying with our policies and procedures, is shared by all of our employees.
We have a multilayered approach to resolving conflicts and addressing reputational risk. Our senior management oversees policies related to conflicts resolution, and, in conjunction with Conflicts Resolution, Legal and Compliance, the Firmwide Client and Business Standards Committee, and other internal committees, formulates policies, standards and principles, and assists in making judgments regarding the appropriate resolution of particular conflicts. Resolving potential conflicts necessarily depends on the facts and circumstances of a particular situation and the application of experienced and informed judgment.
As a general matter, Conflicts Resolution reviews financing and advisory assignments in Investment Banking and certain of our investing, lending and other activities. In addition, we have various transaction oversight committees, such as the Firmwide Capital, Commitments and Suitability Committees and other committees that also review new underwritings, loans, investments and structured products. These groups and committees work with internal and external counsel and Compliance to evaluate and address any actual or potential conflicts. Conflicts Resolution reports to our president and chief operating officer.
We regularly assess our policies and procedures that address conflicts of interest in an effort to conduct our business in accordance with the highest ethical standards and in compliance with all applicable laws, rules and regulations.
Compliance Risk Management
Compliance risk is the risk of legal or regulatory sanctions, material financial loss or damage to our reputation arising from our failure to comply with the requirements of applicable laws, rules and regulations, and our internal policies and procedures. Compliance risk is inherent in all activities through which we conduct our businesses. Our Compliance Risk Management Program, administered by Compliance, assesses our compliance, regulatory and reputational risk; monitors for compliance with new or amended laws, rules and regulations; designs and implements controls, policies, procedures and training; conducts independent testing; investigates, surveils and monitors for compliance risks and breaches; and leads our responses to regulatory examinations, audits and inquiries. We monitor and review business practices to assess whether they meet or exceed minimum regulatory and legal standards in all markets and jurisdictions in which we conduct business.
Liquidity Risk Management
Overview
Liquidity risk is the risk that we will be unable to fund ourselves or meet our liquidity needs in the event of firm-specific, broader industry or market liquidity stress events. We have in place a comprehensive and conservative set of liquidity and funding policies. Our principal objective is to be able to fund ourselves and to enable our core businesses to continue to serve clients and generate revenues, even under adverse circumstances.
Treasury, which reports to our chief financial officer, has primary responsibility for developing, managing and executing our liquidity and funding strategy within our risk appetite.
Liquidity Risk, which is independent of our revenue-producing units and Treasury, and reports to our chief risk officer, has primary responsibility for assessing, monitoring and managing our liquidity risk through firmwide oversight across our global businesses and the establishment of stress testing and limits frameworks.
Liquidity Risk Management Principles
We manage liquidity risk according to three principles: (i) hold sufficient excess liquidity in the form of GCLA to cover outflows during a stressed period, (ii) maintain appropriate Asset-Liability Management and (iii) maintain a viable Contingency Funding Plan.
GCLA.
GCLA is liquidity that we maintain to meet a broad range of potential cash outflows and collateral needs in a stressed environment. A primary liquidity principle is to
pre-fund
our estimated potential cash and collateral needs during a liquidity crisis and hold this liquidity in the form of unencumbered, highly liquid securities and cash. We believe that the securities held in our GCLA would be readily convertible to cash in a matter of days, through liquidation, by entering into repurchase agreements or from maturities of resale agreements, and that this cash would allow us to meet immediate obligations without needing to sell other assets or depend on additional funding from credit-sensitive markets.
Our GCLA reflects the following principles:
 
•
The first days or weeks of a liquidity crisis are the most critical to a company’s survival;
 
•
Focus must be maintained on all potential cash and collateral outflows, not just disruptions to financing flows. Our businesses are diverse, and our liquidity needs are determined by many factors, including market movements, collateral requirements and client commitments, all of which can change dramatically in a difficult funding environment;
   
131
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
•
During a liquidity crisis, credit-sensitive funding, including unsecured debt, certain deposits and some types of secured financing agreements, may be unavailable, and the terms (e.g., interest rates, collateral provisions and tenor) or availability of other types of secured financing may change and certain deposits may be withdrawn; and
 
•
As a result of our policy to
pre-fund
liquidity that we estimate may be needed in a crisis, we hold more unencumbered securities and have larger funding balances than our businesses would otherwise require. We believe that our liquidity is stronger with greater balances of highly liquid unencumbered securities, even though it increases our total assets and our funding costs.
We maintain our GCLA across Group Inc., Goldman Sachs Funding LLC (Funding IHC) and Group Inc.’s major broker-dealer and bank subsidiaries, asset types and clearing agents to provide us with sufficient operating liquidity to ensure timely settlement in all major markets, even in a difficult funding environment. In addition to the GCLA, we maintain cash balances and securities in several of our other entities, primarily for use in specific currencies, entities or jurisdictions where we do not have immediate access to parent company liquidity.
Asset-Liability Management.
Our liquidity risk management policies are designed to ensure we have a sufficient amount of financing, even when funding markets experience persistent stress. We manage the maturities and diversity of our funding across markets, products and counterparties, and seek to maintain a diversified funding profile with an appropriate tenor, taking into consideration the characteristics and liquidity profile of our assets.
Our approach to asset-liability management includes:
 
•
Conservatively managing the overall characteristics of our funding book, with a focus on maintaining long-term, diversified sources of funding in excess of our current requirements. See “Balance Sheet and Funding Sources — Funding Sources” for further information;
 
•
Actively managing and monitoring our asset base, with particular focus on the liquidity, holding period and ability to fund assets on a secured basis. We assess our funding requirements and our ability to liquidate assets in a stressed environment while appropriately managing risk. This enables us to determine the most appropriate funding products and tenors. See “Balance Sheet and Funding Sources — Balance Sheet Management” for further information about our balance sheet management process and “— Funding Sources — Secured Funding” for further information about asset classes that may be harder to fund on a secured basis; and
•
Raising secured and unsecured financing that has a long tenor relative to the liquidity profile of our assets. This reduces the risk that our liabilities will come due in advance of our ability to generate liquidity from the sale of our assets. Because we maintain a highly liquid balance sheet, the holding period of certain of our assets may be materially shorter than their contractual maturity dates.
Our goal is to ensure that we maintain sufficient liquidity to fund our assets and meet our contractual and contingent obligations in normal times, as well as during periods of market stress. Through our dynamic balance sheet management process, we use actual and projected asset balances to determine secured and unsecured funding requirements. Funding plans are reviewed and approved by the Firmwide Asset Liability Committee. In addition, our independent risk oversight and control functions analyze, and the Firmwide Asset Liability Committee reviews, our consolidated total capital position (unsecured long-term borrowings plus total shareholders’ equity) so that we maintain a level of long-term funding that is sufficient to meet our long-term financing requirements. In a liquidity crisis, we would first use our GCLA in order to avoid reliance on asset sales (other than our GCLA). However, we recognize that orderly asset sales may be prudent or necessary in a severe or persistent liquidity crisis.
Subsidiary Funding Policies
The majority of our unsecured funding is raised by Group Inc., which lends the necessary funds to Funding IHC and other subsidiaries, some of which are regulated, to meet their asset financing, liquidity and capital requirements. In addition, Group Inc. provides its regulated subsidiaries with the necessary capital to meet their regulatory requirements. The benefits of this approach to subsidiary funding are enhanced control and greater flexibility to meet the funding requirements of our subsidiaries. Funding is also raised at the subsidiary level through a variety of products, including deposits, secured funding and unsecured borrowings.
Our intercompany funding policies assume that a subsidiary’s funds or securities are not freely available to its parent, Funding IHC or other subsidiaries unless (i) legally provided for and (ii) there are no additional regulatory, tax or other restrictions. In particular, many of our subsidiaries are subject to laws that authorize regulatory bodies to block or reduce the flow of funds from those subsidiaries to Group Inc. or Funding IHC. Regulatory action of that kind could impede access to funds that Group Inc. needs to make payments on its obligations. Accordingly, we assume that the capital provided to our regulated subsidiaries is not available to Group Inc. or other subsidiaries and any other financing provided to our regulated subsidiaries is not available to Group Inc. or Funding IHC until the maturity of such financing.
   
Goldman Sachs March 2020 Form 10-Q
 
132
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Group Inc. has provided substantial amounts of equity and subordinated indebtedness, directly or indirectly, to its regulated subsidiaries. For example, as of March 2020, Group Inc. had $33.23 billion of equity and subordinated indebtedness invested in GS&Co., its principal U.S. registered broker-dealer; $41.68 billion invested in GSI, a regulated U.K. broker-dealer; $2.94 billion invested in GSJCL, a regulated Japanese broker-dealer; $33.87 billion invested in GS Bank USA, a regulated New York State-chartered bank; and $4.04 billion invested in GSIB, a regulated U.K. bank. Group Inc. also provided, directly or indirectly, $117.52 billion of unsubordinated loans (including secured loans of $55.61 billion) and $17.01 billion of collateral and cash deposits to these entities, substantially all of which was to GS&Co., GSI and GSJCL, as of March 2020. In addition, as of March 2020, Group Inc. had significant amounts of capital invested in and loans to its other regulated subsidiaries.
Contingency Funding Plan.
We maintain a contingency funding plan to provide a framework for analyzing and responding to a liquidity crisis situation or periods of market stress. Our contingency funding plan outlines a list of potential risk factors, key reports and metrics that are reviewed on an ongoing basis to assist in assessing the severity of, and managing through, a liquidity crisis and/or market dislocation. The contingency funding plan also describes in detail our potential responses if our assessments indicate that we have entered a liquidity crisis, which include
pre-funding
for what we estimate will be our potential cash and collateral needs, as well as utilizing secondary sources of liquidity. Mitigants and action items to address specific risks which may arise are also described and assigned to individuals responsible for execution.
The contingency funding plan identifies key groups of individuals and their responsibilities, which include fostering effective coordination, control and distribution of information, implementing liquidity maintenance activities and managing internal and external communication, all of which are critical in the management of a crisis or period of market stress.
Stress Tests
In order to determine the appropriate size of our GCLA, we model liquidity outflows over a range of scenarios and time horizons. One of our primary internal liquidity risk models, referred to as the Modeled Liquidity Outflow, quantifies our liquidity risks over a
30-day
stress scenario. We also consider other factors, including, but not limited to, an assessment of our potential intraday liquidity needs through an additional internal liquidity risk model, referred to as the Intraday Liquidity Model, the results of our long-term stress testing models, our resolution liquidity models and other applicable regulatory requirements and a qualitative assessment of our condition, as well as the financial markets. The results of the Modeled Liquidity Outflow, the Intraday Liquidity Model, the long-term stress testing models and the resolution liquidity models are reported to senior management on a regular basis. We also perform firmwide stress tests. See “Overview and Structure of Risk Management” for information about firmwide stress tests.
Modeled Liquidity Outflow.
Our Modeled Liquidity Outflow is based on conducting multiple scenarios that include combinations of market-wide and firm-specific stress. These scenarios are characterized by the following qualitative elements:
 
•
Severely challenged market environments, which includes low consumer and corporate confidence, financial and political instability, and adverse changes in market values, including potential declines in equity markets and widening of credit spreads; and
 
•
A firm-specific crisis potentially triggered by material losses, reputational damage, litigation and/or a ratings downgrade.
The following are key modeling elements of our Modeled Liquidity Outflow:
 
•
Liquidity needs over a
30-day
scenario;
 
•
A
two-notch
downgrade of our long-term senior unsecured credit ratings;
 
•
Changing conditions in funding markets, which limit our access to unsecured and secured funding;
 
•
No support from additional government funding facilities. Although we have access to various central bank funding programs, we do not assume reliance on additional sources of funding in a liquidity crisis; and
 
•
A combination of contractual outflows, such as upcoming maturities of unsecured debt, and contingent outflows, including, but not limited to, the withdrawal of customer credit balances in our prime brokerage business, increase in variation margin requirements due to adverse changes in the value of our exchange-traded and
OTC-cleared
derivatives, and withdrawals of deposits that have no contractual maturity.
   
133
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Intraday Liquidity Model.
Our Intraday Liquidity Model measures our intraday liquidity needs using a scenario analysis characterized by the same qualitative elements as our Modeled Liquidity Outflow. The model assesses the risk of increased intraday liquidity requirements during a scenario where access to sources of intraday liquidity may become constrained.
Long-Term Stress Testing.
We utilize longer-term stress tests to take a forward view on our liquidity position through prolonged stress periods in which we experience a severe liquidity stress and recover in an environment that continues to be challenging. We are focused on ensuring conservative asset-liability management to prepare for a prolonged period of potential stress, seeking to maintain a diversified funding profile with an appropriate tenor, taking into consideration the characteristics and liquidity profile of our assets.
Resolution Liquidity Models.
In connection with our resolution planning efforts, we have established our Resolution Liquidity Adequacy and Positioning framework, which estimates liquidity needs of our major subsidiaries in a stressed environment. The liquidity needs are measured using our Modeled Liquidity Outflow assumptions and include certain additional inter-affiliate exposures. We have also established our Resolution Liquidity Execution Need framework, which measures the liquidity needs of our major subsidiaries to stabilize and wind-down following a Group Inc. bankruptcy filing in accordance with our preferred resolution strategy.
In addition, we have established a triggers and alerts framework, which is designed to provide the Board with information needed to make an informed decision on whether and when to commence bankruptcy proceedings for Group Inc.
Limits
We use liquidity risk limits at various levels and across liquidity risk types to manage the size of our liquidity exposures. Limits are measured relative to acceptable levels of risk given our liquidity risk tolerance. See “Overview and Structure of Risk Management” for information about the limit approval process.
Limits are monitored by Treasury and Liquidity Risk. Liquidity Risk is responsible for identifying and escalating to senior management and/or the appropriate risk committee, on a timely basis, instances where limits have been exceeded.
GCLA and Unencumbered Metrics
GCLA.
Based on the results of our internal liquidity risk models, described above, as well as our consideration of other factors, including, but not limited to, a qualitative assessment of our condition, as well as the financial markets, we believe our liquidity position as of both March 2020 and December 2019 was appropriate. We strictly limit our GCLA to a narrowly defined list of securities and cash because they are highly liquid, even in a difficult funding environment. We do not include other potential sources of excess liquidity in our GCLA, such as less liquid unencumbered securities or committed credit facilities.
The table below presents information about our GCLA.
 
         
    
 
Average for the
Three Months Ended
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Denomination
 
 
 
  
 
U.S. dollar
 
 
$158,016
 
  
$150,455
 
Non-U.S.
dollar
 
 
84,730
 
  
86,661
 
Total
 
 
$242,746
 
  
$237,116
 
Asset Class
 
 
 
  
 
Overnight cash deposits
 
 
$  70,776
 
  
$  66,327
 
U.S. government obligations
 
 
104,600
 
  
99,798
 
U.S. agency obligations
 
 
12,191
 
  
14,081
 
Non-U.S.
government obligations
 
 
55,179
 
  
56,910
 
Total
 
 
$242,746
 
  
$237,116
 
Entity Type
 
 
 
  
 
Group Inc. and Funding IHC
 
 
$  39,001
 
  
$  39,104
 
Major broker-dealer subsidiaries
 
 
89,575
 
  
92,835
 
Major bank subsidiaries
 
 
114,170
 
  
105,177
 
Total
 
 
$242,746
 
  
$237,116
 
In the table above:
 
•
The U.S. dollar-denominated GCLA consists of (i) unencumbered U.S. government and agency obligations (including highly liquid U.S. agency mortgage-backed obligations), all of which are eligible as collateral in Federal Reserve open market operations and (ii) certain overnight U.S. dollar cash deposits.
 
•
The
non-U.S.
dollar-denominated GCLA consists of
non-U.S.
government obligations (only unencumbered German, French, Japanese and U.K. government obligations) and certain overnight cash deposits in highly liquid currencies.
   
Goldman Sachs March 2020 Form 10-Q
 
134
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
We maintain our GCLA to enable us to meet current and potential liquidity requirements of our parent company, Group Inc., and its subsidiaries. Our Modeled Liquidity Outflow and Intraday Liquidity Model incorporate a requirement for Group Inc., as well as a standalone requirement for each of our major broker-dealer and bank subsidiaries. Funding IHC is required to provide the necessary liquidity to Group Inc. during the ordinary course of business, and is also obligated to provide capital and liquidity support to major subsidiaries in the event of our material financial distress or failure. Liquidity held directly in each of our major broker-dealer and bank subsidiaries is intended for use only by that subsidiary to meet its liquidity requirements and is assumed not to be available to Group Inc. or Funding IHC unless (i) legally provided for and (ii) there are no additional regulatory, tax or other restrictions. In addition, the Modeled Liquidity Outflow and Intraday Liquidity Model also incorporate a broader assessment of standalone liquidity requirements for other subsidiaries and we hold a portion of our GCLA directly at Group Inc. or Funding IHC to support such requirements.
Other Unencumbered Assets.
In addition to our GCLA, we have a significant amount of other unencumbered cash and financial instruments, including other government obligations, high-grade money market securities, corporate obligations, marginable equities, loans and cash deposits not included in our GCLA. The fair value of our unencumbered assets averaged $205.95 billion for the three months ended March 2020 and $206.01 billion for the three months ended December 2019. We do not consider these assets liquid enough to be eligible for our GCLA.
Liquidity Regulatory Framework
As a bank holding company (BHC), we are subject to a minimum Liquidity Coverage Ratio (LCR) under the LCR rule approved by the U.S. federal bank regulatory agencies. The LCR rule requires organizations to maintain an adequate ratio of eligible high-quality liquid assets (HQLA) to expected net cash outflows under an acute short-term liquidity stress scenario. Eligible HQLA excludes HQLA held by subsidiaries that is in excess of their minimum requirement and is subject to transfer restrictions. We are required to maintain a minimum LCR of 100%. We expect that fluctuations in client activity, business mix and the market environment will impact our LCR.
The table below presents information about our average daily LCR.
 
         
    
 
Average for the
Three Months Ended
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Total HQLA
 
 
$235,620
 
  
$229,029
 
Eligible HQLA
 
 
$178,530
 
  
$170,371
 
Net cash outflows
 
 
$136,341
 
  
$134,436
 
 
LCR
 
 
131%
 
  
127%
 
The U.S. federal bank regulatory agencies have issued a proposed rule that calls for a net stable funding ratio (NSFR) for large U.S. banking organizations. The proposal would require banking organizations to ensure they have access to stable funding over a
one-year
time horizon and includes quarterly disclosure of the ratio and a description of the banking organization’s stable funding sources. We expect that we will be compliant with the NSFR requirement when it is effective.
The following provides information about our subsidiary liquidity regulatory requirements:
 
•
GS Bank USA.
GS Bank USA is subject to a minimum LCR of 100% under the LCR rule approved by the U.S. federal bank regulatory agencies. As of March 2020, GS Bank USA’s LCR exceeded the minimum requirement. The NSFR requirement described above would also apply to GS Bank USA.
 
•
GSI.
GSI is subject to a minimum LCR of 100% under the LCR rule approved by the U.K. regulatory authorities and the European Commission. GSI’s average monthly LCR for the trailing twelve-month period ended March 2020 exceeded the minimum requirement.
 
•
Other Subsidiaries.
We monitor local regulatory liquidity requirements of our subsidiaries to ensure compliance. For many of our subsidiaries, these requirements either have changed or are likely to change in the future due to the implementation of the Basel Committee on Banking Supervision’s framework for liquidity risk measurement, standards and monitoring, as well as other regulatory developments.
The implementation of these rules and any amendments adopted by the regulatory authorities could impact our liquidity and funding requirements and practices in the future.
Credit Ratings
We rely on the short- and long-term debt capital markets to fund a significant portion of our
day-to-day
operations and the cost and availability of debt financing is influenced by our credit ratings. Credit ratings are also important when we are competing in certain markets, such as OTC derivatives, and when we seek to engage in longer-term transactions. See “Risk Factors” in Part I, Item 1A of the 2019 Form
 10-K
for information about the risks associated with a reduction in our credit ratings.
   
135
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
The table below presents the unsecured credit ratings and outlook of Group Inc.
 
                     
    
 
As of March 2020
 
                     
 
 
DBRS
 
 
 
Fitch
 
 
 
Moody’s
 
 
 
R&I
 
 
 
S&P
 
Short-term debt
 
 
R-1
 (middle
)
 
 
F1
 
 
 
P-2
 
 
 
a-1
 
 
 
A-2
 
Long-term debt
 
 
A (high
)
 
 
A
 
 
 
A3
 
 
 
A
 
 
 
BBB+
 
Subordinated debt
 
 
A
 
 
 
A-
 
 
 
Baa2
 
 
 
A-
 
 
 
BBB-
 
Trust preferred
 
 
A
 
 
 
BBB-
 
 
 
Baa3
 
 
 
N/A
 
 
 
BB
 
Preferred stock
 
 
BBB (high
)
 
 
BB+
 
 
 
Ba1
 
 
 
N/A
 
 
 
BB
 
Ratings outlook
 
 
Stable
 
 
 
Stable
 
 
 
Stable
 
 
 
Stable
 
 
 
Stable
 
In the table above:
 
•
The ratings and outlook are by DBRS, Inc. (DBRS), Fitch, Inc. (Fitch), Moody’s Investors Service (Moody’s), Rating and Investment Information, Inc. (R&I), and Standard & Poor’s Ratings Services (S&P).
 
•
The ratings for trust preferred relate to the guaranteed preferred beneficial interests issued by Goldman Sachs Capital I.
 
•
The DBRS, Fitch, Moody’s and S&P ratings for preferred stock include the APEX issued by Goldman Sachs Capital II and Goldman Sachs Capital III.
In April 2020, after revising its global rating methodology for banks, Fitch lowered Group Inc.’s ratings on subordinated debt (from
A-
to BBB+) and upgraded preferred stock (from BB+ to
BBB-).
In addition, due to
COVID-19
uncertainty, Fitch revised the outlook of Group Inc. from stable to negative.
The table below presents the unsecured credit ratings and outlook of GS Bank USA, GSIB, GS&Co. and GSI.
 
             
    
 
As of March 2020
 
             
 
 
Fitch
 
 
 
Moody’s
 
 
 
S&P
 
GS Bank USA
 
 
 
 
 
 
 
 
 
Short-term debt
 
 
F1
 
 
 
P-1
 
 
 
A-1
 
Long-term debt
 
 
A+
 
 
 
A1
 
 
 
A+
 
Short-term bank deposits
 
 
F1+
 
 
 
P-1
 
 
 
N/A
 
Long-term bank deposits
 
 
AA-
 
 
 
A1
 
 
 
N/A
 
Ratings outlook
 
 
Stable
 
 
 
Stable
 
 
 
Stable
 
GSIB
 
 
 
 
 
 
 
 
 
Short-term debt
 
 
F1
 
 
 
P-1
 
 
 
A-1
 
Long-term debt
 
 
A
 
 
 
A1
 
 
 
A+
 
Short-term bank deposits
 
 
F1
 
 
 
P-1
 
 
 
N/A
 
Long-term bank deposits
 
 
A
 
 
 
A1
 
 
 
N/A
 
Ratings outlook
 
 
Stable
 
 
 
Stable
 
 
 
Stable
 
GS&Co.
 
 
 
 
 
 
 
 
 
Short-term debt
 
 
F1
 
 
 
N/A
 
 
 
A-1
 
Long-term debt
 
 
A+
 
 
 
N/A
 
 
 
A+
 
Ratings outlook
 
 
Stable
 
 
 
N/A
 
 
 
Stable
 
GSI
 
 
 
 
 
 
 
 
 
Short-term debt
 
 
F1
 
 
 
P-1
 
 
 
A-1
 
Long-term debt
 
 
A
 
 
 
A1
 
 
 
A+
 
Ratings outlook
 
 
Stable
 
 
 
Stable
 
 
 
Stable
 
In April 2020, Fitch upgraded GSIB’s and GSI’s ratings on long-term debt (from A to A+) and GSIB’s long-term bank deposits (from A to A+). In addition, due to
COVID-19
uncertainty, Fitch revised the outlook of GS Bank USA, GSIB, GS&Co. and GSI from stable to negative.
We believe our credit ratings are primarily based on the credit rating agencies’ assessment of:
 
•
Our liquidity, market, credit and operational risk management practices;
 
•
Our level and variability of earnings;
 
•
Our capital base;
 
•
Our franchise, reputation and management;
 
•
Our corporate governance; and
 
•
The external operating and economic environment, including, in some cases, the assumed level of government support or other systemic considerations, such as potential resolution.
Certain of our derivatives have been transacted under bilateral agreements with counterparties who may require us to post collateral or terminate the transactions based on changes in our credit ratings. We manage our GCLA to ensure we would, among other potential requirements, be able to make the additional collateral or termination payments that may be required in the event of a
two-notch
reduction in our long-term credit ratings, as well as collateral that has not been called by counterparties, but is available to them.
See Note 7 to the consolidated financial statements for further information about derivatives with credit-related contingent features and the additional collateral or termination payments related to our net derivative liabilities under bilateral agreements that could have been called by counterparties in the event of a
one-
or
two-notch
downgrade in our credit ratings.
   
Goldman Sachs March 2020 Form 10-Q
 
136
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Cash Flows
As a global financial institution, our cash flows are complex and bear little relation to our net earnings and net assets. Consequently, we believe that traditional cash flow analysis is less meaningful in evaluating our liquidity position than the liquidity and asset-liability management policies described above. Cash flow analysis may, however, be helpful in highlighting certain macro trends and strategic initiatives in our businesses.
Three Months Ended March 2020.
Our cash and cash equivalents decreased by $28.06 billion to $105.49 billion at the end of the first quarter of 2020, primarily due to net cash used for operating activities and investing activities, partially offset by net cash provided by financing activities. The net cash used for operating activities primarily reflected an increase in collateralized transactions (an increase in collateralized agreements and a decrease in collateralized financings) as a result of our activities and our clients’ activities. The net cash used for investing activities primarily reflected an increase in corporate loans and net purchases of investments. The net cash provided by financing activities primarily reflected an increase in deposits, the issuance of unsecured long-term borrowings and an increase in other secured financings.
Three Months Ended March 2019.
Our cash and cash equivalents decreased by $42.66 billion to $87.88 billion at the end of the first quarter of 2019, primarily due to net cash used for operating activities. The net cash used for operating activities primarily reflected an increase in trading assets and collateralized transactions (an increase in collateralized agreements and a decrease in collateralized financings) as a result of our activities and our clients’ activities.
Market Risk Management
Overview
Market risk is the risk of loss in the value of our inventory, investments, loans and other financial assets and liabilities accounted for at fair value due to changes in market conditions. We hold such positions primarily for market making for our clients and for our investing and financing activities, and therefore, these positions change based on client demands and our investment opportunities. Since these positions are accounted for at fair value, they fluctuate on a daily basis, with the related gains and losses included in the consolidated statements of earnings. We employ a variety of risk measures, each described in the respective sections below, to monitor market risk. Categories of market risk include the following:
 
•
Interest rate risk: results from exposures to changes in the level, slope and curvature of yield curves, the volatilities of interest rates, prepayment speeds and credit spreads;
 
•
Equity price risk: results from exposures to changes in prices and volatilities of individual equities, baskets of equities and equity indices;
 
•
Currency rate risk: results from exposures to changes in spot prices, forward prices and volatilities of currency rates; and
 
•
Commodity price risk: results from exposures to changes in spot prices, forward prices and volatilities of commodities, such as crude oil, petroleum products, natural gas, electricity, and precious and base metals.
Market Risk, which is independent of our revenue-producing units and reports to our chief risk officer, has primary responsibility for assessing, monitoring and managing our market risk through firmwide oversight across our global businesses.
Managers in revenue-producing units and Market Risk discuss market information, positions and estimated loss scenarios on an ongoing basis. Managers in revenue-producing units are accountable for managing risk within prescribed limits. These managers have
in-depth
knowledge of their positions, markets and the instruments available to hedge their exposures.
   
137
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Market Risk Management Process
Our process for managing market risk includes the critical components of our risk management framework described in the “Overview and Structure of Risk Management,” as well as the following:
 
•
Monitoring compliance with established market risk limits and reporting our exposures;
 
 
•
Diversifying exposures;
 
 
•
Controlling position sizes; and
 
 
•
Evaluating mitigants, such as economic hedges in related securities or derivatives.
 
Our market risk management systems enable us to perform an independent calculation of
Value-at-Risk
(VaR) and stress measures, capture risk measures at individual position levels, attribute risk measures to individual risk factors of each position, report many different views of the risk measures (e.g., by desk, business, product type or entity) and produce ad hoc analyses in a timely manner.
Risk Measures
We produce risk measures and monitor them against established market risk limits. These measures reflect an extensive range of scenarios and the results are aggregated at product, business and firmwide levels.
We use a variety of risk measures to estimate the size of potential losses for both moderate and more extreme market moves over both short- and long-term time horizons. Our primary risk measures are VaR, which is used for shorter-term periods, and stress tests. Our risk reports detail key risks, drivers and changes for each desk and business, and are distributed daily to senior management of both our revenue-producing units and our independent risk oversight and control functions.
Value-at-Risk.
VaR is the potential loss in value due to adverse market movements over a defined time horizon with a specified confidence level. For assets and liabilities included in VaR, see “Financial Statement Linkages to Market Risk Measures.” We typically employ a
one-day
time horizon with a 95% confidence level. We use a single VaR model, which captures risks including interest rates, equity prices, currency rates and commodity prices. As such, VaR facilitates comparison across portfolios of different risk characteristics. VaR also captures the diversification of aggregated risk at the firmwide level.
We are aware of the inherent limitations to VaR and therefore use a variety of risk measures in our market risk management process. Inherent limitations to VaR include:
 
•
VaR does not estimate potential losses over longer time horizons where moves may be extreme;
 
 
•
VaR does not take account of the relative liquidity of different risk positions; and
 
 
•
Previous moves in market risk factors may not produce accurate predictions of all future market moves.
 
To comprehensively capture our exposures and relevant risks in our VaR calculation, we use historical simulations with full valuation of market factors at the position level by simultaneously shocking the relevant market factors for that position. These market factors include spot prices, credit spreads, funding spreads, yield curves, volatility and correlation, and are updated periodically based on changes in the composition of positions, as well as variations in market conditions. We sample from five years of historical data to generate the scenarios for our VaR calculation. The historical data is weighted so that the relative importance of the data reduces over time. This gives greater importance to more recent observations and reflects current asset volatilities, which improves the accuracy of our estimates of potential loss. As a result, even if our positions included in VaR were unchanged, our VaR would increase with increasing market volatility and vice versa.
Given its reliance on historical data, VaR is most effective in estimating risk exposures in markets in which there are no sudden fundamental changes or shifts in market conditions.
Our VaR measure does not include:
 
•
Positions that are best measured and monitored using sensitivity measures; and
 
 
•
The impact of changes in counterparty and our own credit spreads on derivatives, as well as changes in our own credit spreads on financial liabilities for which the fair value option was elected.
 
   
Goldman Sachs March 2020 Form 10-Q
 
138
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
We perform daily backtesting of our VaR model (i.e., comparing daily net revenues for positions included in VaR to the VaR measure calculated as of the prior business day) at the firmwide level and for each of our businesses and major regulated subsidiaries.
Stress Testing.
Stress testing is a method of determining the effect of various hypothetical stress scenarios. We use stress testing to examine risks of specific portfolios, as well as the potential impact of our significant risk exposures. We use a variety of stress testing techniques to calculate the potential loss from a wide range of market moves on our portfolios, including firmwide stress tests, sensitivity analysis and scenario analysis. The results of our various stress tests are analyzed together for risk management purposes. See “Overview and Structure of Risk Management” for information about firmwide stress tests.
Sensitivity analysis is used to quantify the impact of a market move in a single risk factor across all positions (e.g., equity prices or credit spreads) using a variety of defined market shocks, ranging from those that could be expected over a
one-day
time horizon up to those that could take many months to occur. We also use sensitivity analysis to quantify the impact of the default of any single entity, which captures the risk of large or concentrated exposures.
Scenario analysis is used to quantify the impact of a specified event, including how the event impacts multiple risk factors simultaneously. For example, for sovereign stress testing we calculate potential direct exposure associated with our sovereign positions, as well as the corresponding debt, equity and currency exposures associated with our
non-sovereign
positions that may be impacted by the sovereign distress. When conducting scenario analysis, we often consider a number of possible outcomes for each scenario, ranging from moderate to severely adverse market impacts. In addition, these stress tests are constructed using both historical events and forward-looking hypothetical scenarios.
Unlike VaR measures, which have an implied probability because they are calculated at a specified confidence level, there may not be an implied probability that our stress testing scenarios will occur. Instead, stress testing is used to model both moderate and more extreme moves in underlying market factors. When estimating potential loss, we generally assume that our positions cannot be reduced or hedged (although experience demonstrates that we are generally able to do so).
Limits
We use market risk limits at various levels to manage the size of our market exposures. These limits are set based on VaR and on a range of stress tests relevant to our exposures. See “Overview and Structure of Risk Management” for information about the limit approval process.
Market Risk is responsible for monitoring these limits, and identifying and escalating to senior management and/or the appropriate risk committee, on a timely basis, instances where limits have been exceeded (e.g., due to positional changes or changes in market conditions, such as increased volatilities or changes in correlations). Such instances are remediated by a reduction in the positions we hold and/or a temporary or permanent increase to the limit.
Metrics
We analyze VaR at the firmwide level and a variety of more detailed levels, including by risk category, business and region. Diversification effect in the tables below represents the difference between total VaR and the sum of the VaRs for the four risk categories. This effect arises because the four market risk categories are not perfectly correlated.
The table below presents our average daily VaR.
 
             
    
 
Three Months Ended
 
             
$ in millions
 
 
March 2020
 
  
December 2019
   
March 2019
 
Categories
 
 
 
  
   
 
Interest rates
 
 
$ 60
 
  
$ 49
   
$ 43
 
Equity prices
 
 
41
 
  
24
   
29
 
Currency rates
 
 
18
 
  
11
   
12
 
Commodity prices
 
 
11
 
  
12
   
11
 
Diversification effect
 
 
(49
)
  
(38
)  
(40
)
Total
 
 
$ 81
 
  
$ 58
   
$ 55
 
 
Our average daily VaR increased to $81 million for the first quarter of 2020 from $58 million for the fourth quarter of 2019, primarily due to increases in the equity prices, interest rates and currency rates categories, partially offset by an increase in the diversification effect. The overall increase was due to increased exposures and higher levels of volatility.
Our average daily VaR increased to $81 million for the first quarter of 2020 from $55 million for the first quarter of 2019, due to increases in the interest rates, equity prices and currency rates categories, partially offset by an increase in the diversification effect. The overall increase was due to higher levels of volatility and increased exposures.
   
139
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
The table below presents our
period-end
VaR.
 
             
    
 
As of
 
             
$ in millions
 
 
March 2020
 
  
December 2019
   
March 2019
 
Categories
 
 
 
  
   
 
Interest rates
 
 
$   99
 
  
$ 54
   
$ 41
 
Equity prices
 
 
78
 
  
24
   
31
 
Currency rates
 
 
48
 
  
10
   
11
 
Commodity prices
 
 
16
 
  
10
   
12
 
Diversification effect
 
 
(118
)
  
(28
)  
(38
)
Total
 
 
$ 123
 
  
$ 70
   
$ 57
 
 
Our
period-end
VaR increased to $123 million as of March 2020 from $70 million as of December 2019, due to increases in the equity prices, interest rates, currency rates and commodity prices categories, partially offset by an increase in the diversification effect. The overall increase was primarily due to higher levels of volatility.
Our
period-end
VaR increased to $123 million as of March 2020 from $57 million as of March 2019, due to increases in the interest rates, equity prices, currency rates and commodity prices categories, partially offset by an increase in the diversification effect. The overall increase was primarily due to higher levels of volatility.
During the three months ended March 2020 the firmwide VaR risk limit was exceeded on 10 occasions primarily due to higher levels of volatility and was not raised or reduced. During the year ended December 2019, the firmwide VaR risk limit was not exceeded, raised or reduced.
The table below presents our high and low VaR.
 
                               
    
 
Three Months Ended
 
               
 
March 2020
  
    
 
December 2019
  
    
  
March 2019
 
                               
$ in millions
 
 
High
 
 
 
Low
 
 
  
High
   
Low
   
   
High
   
Low
 
Categories
 
 
 
  
  
  
   
   
   
   
 
Interest rates
 
 
$  99
 
 
 
$46
 
 
  
$64
   
$39
   
   
$52
   
$35
 
Equity prices
 
 
$116
 
 
 
$23
 
 
  
$30
   
$20
   
   
$38
   
$25
 
Currency rates
 
 
$  53
 
 
 
$  8
 
 
  
$17
   
$  7
   
   
$20
   
$  7
 
Commodity prices
 
 
$  18
 
 
 
$  9
 
 
  
$16
   
$  9
   
   
$16
   
$10
 
 
Firmwide
 
 
 
  
  
  
   
   
   
   
 
VaR
 
 
$195
 
 
 
$58
 
 
  
$77
   
$48
   
   
$63
   
$49
 
 
The chart below presents our daily VaR for the three months ended March 2020.
The table below presents, by number of business days, the frequency distribution of our daily net revenues for positions included in VaR.
 
         
    
 
Three Months
Ended March
 
         
$ in millions
 
 
2020
 
  
2019
 
>$100
 
 
14
 
  
5
 
$75 - $100
 
 
8
 
  
6
 
$50 - $75
 
 
5
 
  
10
 
$25 - $50
 
 
12
 
  
18
 
$0 - $25
 
 
14
 
  
19
 
$(25) - $0
 
 
4
 
  
3
 
$(50) - $(25)
 
 
1
 
  
–
 
$(75) - $(50)
 
 
2
 
  
–
 
$(100) - $(75)
 
 
2
 
  
–
 
Total
 
 
62
 
  
61
 
 
Daily net revenues for positions included in VaR are compared with VaR calculated as of the end of the prior business day. Net losses incurred on a single day for such positions exceeded our 95%
one-day
VaR (i.e., a VaR exception) on two occasions during the three months ended March 2020 and did not exceed our 95%
one-day
VaR during the three months ended March 2019.
During periods in which we have significantly more positive net revenue days than net revenue loss days, we expect to have fewer VaR exceptions because, under normal conditions, our business model generally produces positive net revenues. In periods in which our franchise revenues are adversely affected, we generally have more loss days, resulting in more VaR exceptions. The daily net revenues for positions included in VaR used to determine VaR exceptions reflect the impact of any intraday activity, including bid/offer net revenues, which are more likely than not to be positive by their nature.
   
Goldman Sachs March 2020 Form 10-Q
 
140
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Sensitivity Measures
Certain portfolios and individual positions are not included in VaR because VaR is not the most appropriate risk measure. Other sensitivity measures we use to analyze market risk are described below.
10% Sensitivity Measures.
The table below presents our market risk by asset category for positions accounted for at fair value, that are not included in VaR.
 
             
    
 
As of
 
             
$ in millions
 
 
March 2020
 
  
December 2019
   
March 2019
 
Equity
 
 
$1,818
 
  
$1,865
   
$1,939
 
Debt
 
 
2,384
 
  
2,368
   
2,031
 
Total
 
 
$4,202
 
  
$4,233
   
$3,970
 
 
In the table above:
 
•
The market risk of these positions is determined by estimating the potential reduction in net revenues of a 10% decline in the value of these positions.
 
 
•
Equity positions relate to private and restricted public equity securities, including interests in funds that invest in corporate equities and real estate and interests in hedge funds.
 
 
•
Debt positions include interests in funds that invest in corporate mezzanine and senior debt instruments, loans backed by commercial and residential real estate, corporate bank loans and other corporate debt, including acquired portfolios of distressed loans.
 
 
•
Funded equity and debt positions are included in our consolidated balance sheets in investments and loans. See Note 8 to the consolidated financial statements for further information about investments and Note 9 to the consolidated financial statements for further information about loans.
 
 
•
These measures do not reflect the diversification effect across asset categories or across other market risk measures.
 
Credit and Funding Spread Sensitivity on Derivatives and Financial Liabilities.
VaR excludes the impact of changes in counterparty credit spreads, our own credit spreads and unsecured funding spreads on derivatives, as well as changes in our own credit spreads (debt valuation adjustment) on financial liabilities for which the fair value option was elected. The estimated sensitivity to a one basis point increase in credit spreads (counterparty and our own) and unsecured funding spreads on derivatives (including hedges) was a loss of $4 million as of March 2020 and $2 million as of December 2019. In addition, the estimated sensitivity to a one basis point increase in our own credit spreads on financial liabilities for which the fair value option was elected was a gain of $33 million as of March 2020 and $29 million as of December 2019. However, the actual net impact of a change in our own credit spreads is also affected by the liquidity, duration and convexity (as the sensitivity is not linear to changes in yields) of those financial liabilities for which the fair value option was elected, as well as the relative performance of any hedges undertaken.
Interest Rate Sensitivity.
Loans accounted for at amortized cost were $111.47 billion as of March 2020 and $89.20 billion as of December 2019, substantially all of which had floating interest rates. The estimated sensitivity to a 100 basis point increase in interest rates on such loans was $872 million as of March 2020 and $681 million as of December 2019 of additional interest income over a twelve-month period, which does not take into account the potential impact of an increase in costs to fund such loans. See Note 9 to the consolidated financial statements for further information about loans accounted for at amortized cost.
Other Market Risk Considerations
As of both March 2020 and December 2019, we had commitments and held loans for which we have obtained credit loss protection from Sumitomo Mitsui Financial Group, Inc. See Note 18 to the consolidated financial statements for further information about such lending commitments.
In addition, we make investments in securities that are accounted for as
available-for-sale,
held-to-maturity
or under the equity method which are included in investments in the consolidated balance sheets. See Note 8 to the consolidated financial statements for further information.
Direct investments in real estate are accounted for at cost less accumulated depreciation. See Note 12 to the consolidated financial statements for further information about other assets.
   
141
 
Goldman Sachs March 2020 Form 10-Q
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Financial Statement Linkages to Market Risk Measures
We employ a variety of risk measures, each described in the respective sections above, to monitor market risk across the consolidated balance sheets and consolidated statements of earnings. The related gains and losses on these positions are included in market making, other principal transactions, interest income and interest expense in the consolidated statements of earnings, and debt valuation adjustment in the consolidated statements of comprehensive income.
The table below presents certain assets and liabilities in our consolidated balance sheets and the market risk measures used to assess those assets and liabilities.
 
   
Assets or Liabilities
 
Market Risk Measures
 
Collateralized agreements, at fair value
 
 
VaR
 
Customer and other receivables, at fair
value
 
10% Sensitivity Measures
 
Trading assets
 
 
VaR
Credit Spread Sensitivity
 
Investments, at fair value
 
 
VaR
10% Sensitivity Measures
 
Loans
 
 
VaR
10% Sensitivity Measures
Interest Rate Sensitivity
 
Deposits, at fair value
 
 
VaR
Credit Spread Sensitivity
 
Collateralized financings, at fair value
 
 
VaR
 
Trading liabilities
 
 
VaR
Credit Spread Sensitivity
 
Unsecured short- and long-term
borrowings, at fair value
 
 
VaR
Credit Spread Sensitivity
 
Credit Risk Management
Overview
Credit risk represents the potential for loss due to the default or deterioration in credit quality of a counterparty (e.g., an OTC derivatives counterparty or a borrower) or an issuer of securities or other instruments we hold. Our exposure to credit risk comes mostly from client transactions in OTC derivatives and loans and lending commitments. Credit risk also comes from cash placed with banks, securities financing transactions (i.e., resale and repurchase agreements and securities borrowing and lending activities) and customer and other receivables.
Credit Risk, which is independent of our revenue-producing units and reports to our chief risk officer, has primary responsibility for assessing, monitoring and managing our credit risk through firmwide oversight across our global businesses. The Risk Governance Committee reviews and approves credit policies and parameters. In addition, we hold other positions that give rise to credit risk (e.g., bonds and secondary bank loans). These credit risks are captured as a component of market risk measures, which are monitored and managed by Market Risk. We also enter into derivatives to manage market risk exposures. Such derivatives also give rise to credit risk, which is monitored and managed by Credit Risk.
Credit Risk Management Process
Our process for managing credit risk includes the critical components of our risk management framework described in the “Overview and Structure of Risk Management,” as well as the following:
 
•
Monitoring compliance with established credit risk limits and reporting our credit exposures and credit concentrations;
 
 
•
Establishing or approving underwriting standards;
 
 
•
Assessing the likelihood that a counterparty will default on its payment obligations;
 
 
•
Measuring our current and potential credit exposure and losses resulting from a counterparty default;
 
 
•
Using credit risk mitigants, including collateral and hedging; and
 
 
•
Maximizing recovery through active workout and restructuring of claims.
 
We also perform credit reviews, which include initial and ongoing analyses of our counterparties. For substantially all of our credit exposures, the core of our process is an annual counterparty credit review. A credit review is an independent analysis of the capacity and willingness of a counterparty to meet its financial obligations, resulting in an internal credit rating. The determination of internal credit ratings also incorporates assumptions with respect to the nature of and outlook for the counterparty’s industry, and the economic environment. Senior personnel, with expertise in specific industries, inspect and approve credit reviews and internal credit ratings.
Our risk assessment process may also include, where applicable, reviewing certain key metrics, including, but not limited to, delinquency status, collateral values, Fair Isaac Corporation credit scores and other risk factors.
   
Goldman Sachs March 2020 Form 10-Q
 
142
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Our credit risk management systems capture credit exposure to individual counterparties and on an aggregate basis to counterparties and their subsidiaries. These systems also provide management with comprehensive information about our aggregate credit risk by product, internal credit rating, industry, country and region.
Risk Measures
We measure our credit risk based on the potential loss in the event of
non-payment
by a counterparty using current and potential exposure. For derivatives and securities financing transactions, current exposure represents the amount presently owed to us after taking into account applicable netting and collateral arrangements, while potential exposure represents our estimate of the future exposure that could arise over the life of a transaction based on market movements within a specified confidence level. Potential exposure also takes into account netting and collateral arrangements. For loans and lending commitments, the primary measure is a function of the notional amount of the position.
Stress Tests
We conduct regular stress tests to calculate the credit exposures, including potential concentrations that would result from applying shocks to counterparty credit ratings or credit risk factors (e.g., currency rates, interest rates, equity prices). These shocks cover a wide range of moderate and more extreme market movements, including shocks to multiple risk factors, consistent with the occurrence of a severe market or economic event. In the case of sovereign default, we estimate the direct impact of the default on our sovereign credit exposures, changes to our credit exposures arising from potential market moves in response to the default, and the impact of credit market deterioration on corporate borrowers and counterparties that may result from the sovereign default. Unlike potential exposure, which is calculated within a specified confidence level, stress testing does not generally assume a probability of these events occurring. We also perform firmwide stress tests. See “Overview and Structure of Risk Management” for information about firmwide stress tests.
To supplement these regular stress tests, as described above, we also conduct tailored stress tests on an ad hoc basis in response to specific market events that we deem significant. We also utilize these stress tests to estimate the indirect impact of certain hypothetical events on our country exposures, such as the impact of credit market deterioration on corporate borrowers and counterparties along with the shocks to the risk factors described above. The parameters of these shocks vary based on the scenario reflected in each stress test. We review estimated losses produced by the stress tests in order to understand their magnitude, highlight potential loss concentrations, and assess and mitigate our exposures where necessary.
Limits
We use credit risk limits at various levels, as well as underwriting standards to manage the size and nature of our credit exposures. Limits for industries and countries are based on our risk appetite and are designed to allow for regular monitoring, review, escalation and management of credit risk concentrations. See “Overview and Structure of Risk Management” for information about the limit approval process.
Credit Risk is responsible for monitoring these limits, and identifying and escalating to senior management and/or the appropriate risk committee, on a timely basis, instances where limits have been exceeded.
Risk Mitigants
To reduce our credit exposures on derivatives and securities financing transactions, we may enter into netting agreements with counterparties that permit us to offset receivables and payables with such counterparties. We may also reduce credit risk with counterparties by entering into agreements that enable us to obtain collateral from them on an upfront or contingent basis and/or to terminate transactions if the counterparty’s credit rating falls below a specified level. We monitor the fair value of the collateral to ensure that our credit exposures are appropriately collateralized. We seek to minimize exposures where there is a significant positive correlation between the creditworthiness of our counterparties and the market value of collateral we receive.
For loans and lending commitments, depending on the credit quality of the borrower and other characteristics of the transaction, we employ a variety of potential risk mitigants. Risk mitigants include collateral provisions, guarantees, covenants, structural seniority of the bank loan claims and, for certain lending commitments, provisions in the legal documentation that allow us to adjust loan amounts, pricing, structure and other terms as market conditions change. The type and structure of risk mitigants employed can significantly influence the degree of credit risk involved in a loan or lending commitment.
When we do not have sufficient visibility into a counterparty’s financial strength or when we believe a counterparty requires support from its parent, we may obtain third-party guarantees of the counterparty’s obligations. We may also mitigate our credit risk using credit derivatives or participation agreements.
   
143
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Credit Exposures
As of March 2020, our aggregate credit exposure increased as compared with December 2019, primarily reflecting an increase in OTC derivatives, receivables from clearing organizations and securities financing transactions, partially offset by a decrease in cash deposits with central banks. The percentage of our credit exposures arising from
non-investment-grade
counterparties (based on our internally determined public rating agency equivalents) increased slightly as compared with December 2019, primarily reflecting an increase in
non-investment-grade
OTC derivatives. Our credit exposure to counterparties that defaulted during the three months ended March 2020 was higher as compared with our credit exposure to counterparties that defaulted during the same prior year period, and such exposure was primarily related to OTC derivatives. Our credit exposure to counterparties that defaulted during the three months ended March 2020 remained low, representing less than 0.5% of our total credit exposure. Estimated losses associated with these defaults have been recognized in earnings. Our credit exposures are described further below.
Cash and Cash Equivalents.
Our credit exposure on cash and cash equivalents arises from our unrestricted cash, and includes both interest-bearing and
non-interest-bearing
deposits. To mitigate the risk of credit loss, we place substantially all of our deposits with highly rated banks and central banks.
The table below presents our credit exposure from unrestricted cash and cash equivalents, and the concentration by industry, region and credit quality.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Cash and Cash Equivalents
 
 
$76,561
 
  
$110,774
 
 
Industry
 
 
 
  
 
Financial Institutions
 
 
15%
 
  
12%
 
Sovereign
 
 
85%
 
  
88%
 
Total
 
 
100%
 
  
100%
 
Region
 
 
 
  
 
Americas
 
 
51%
 
  
50%
 
EMEA
 
 
27%
 
  
31%
 
Asia
 
 
22%
 
  
19%
 
Total
 
 
100%
 
  
100%
 
Credit Quality (Credit Rating Equivalent)
 
 
 
  
 
AAA
 
 
64%
 
  
66%
 
AA
 
 
9%
 
  
11%
 
A
 
 
25%
 
  
22%
 
BBB
 
 
2%
 
  
1%
 
Total
 
 
100%
 
  
100%
 
The table above excludes cash segregated for regulatory and other purposes of $28.93 billion as of March 2020 and $22.78 billion as of December 2019.
OTC Derivatives.
Our credit exposure on OTC derivatives arises primarily from our market-making activities. As a market maker, we enter into derivative transactions to provide liquidity to clients and to facilitate the transfer and hedging of their risks. We also enter into derivatives to manage market risk exposures. We manage our credit exposure on OTC derivatives using the credit risk process, measures, limits and risk mitigants described above.
We generally enter into OTC derivatives transactions under bilateral collateral arrangements that require the daily exchange of collateral. As credit risk is an essential component of fair value, we include a credit valuation adjustment (CVA) in the fair value of derivatives to reflect counterparty credit risk, as described in Note 7 to the consolidated financial statements. CVA is a function of the present value of expected exposure, the probability of counterparty default and the assumed recovery upon default.
The table below presents our net credit exposure from OTC derivatives and the concentration by industry and region.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
OTC derivative assets
 
 
$ 68,904
 
  
$ 43,011
 
Collateral (not netted under U.S. GAAP)
 
 
(21,002
)
  
(15,420
)
Net credit exposure
 
 
$ 47,902
 
  
$ 27,591
 
 
Industry
 
 
 
  
 
Consumer, Retail & Healthcare
 
 
4%
 
  
4%
 
Diversified Industrials
 
 
11%
 
  
7%
 
Financial Institutions
 
 
14%
 
  
13%
 
Funds
 
 
21%
 
  
11%
 
Municipalities & Nonprofit
 
 
7%
 
  
8%
 
Natural Resources & Utilities
 
 
13%
 
  
15%
 
Sovereign
 
 
19%
 
  
25%
 
Technology, Media & Telecommunications
 
 
7%
 
  
9%
 
Other (including Special Purpose Vehicles)
 
 
4%
 
  
8%
 
Total
 
 
100%
 
  
100%
 
Region
 
 
 
  
 
Americas
 
 
46%
 
  
44%
 
EMEA
 
 
42%
 
  
48%
 
Asia
 
 
12%
 
  
8%
 
Total
 
 
100%
 
  
100%
 
In the table above:
 
•
OTC derivative assets, included in the consolidated balance sheets, are reported on a
net-by-counterparty
basis (i.e., the net receivable for a given counterparty) when a legal right of setoff exists under an enforceable netting agreement (counterparty netting) and are accounted for at fair value, net of cash collateral received under enforceable credit support agreements (cash collateral netting).
 
•
Collateral represents cash collateral and the fair value of securities collateral, primarily U.S. and
non-U.S.
government and agency obligations, received under credit support agreements, that we consider when determining credit risk, but such collateral is not eligible for netting under U.S. GAAP.
   
Goldman Sachs March 2020 Form 10-Q
 
144
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
The table below presents the distribution of our net credit exposure from OTC derivatives by tenor.
 
             
             
$ in millions
  
Investment- Grade
   
Non-Investment-
Grade / Unrated
   
Total
 
As of March 2020
 
 
 
  
   
 
Less than 1 year
 
 
$   37,771
 
 
 
$   9,218
 
 
 
$   46,989
 
1 - 5 years
 
 
26,665
 
 
 
10,205
 
 
 
36,870
 
Greater than 5 years
 
 
74,102
 
 
 
9,719
 
 
 
83,821
 
Total
 
 
138,538
 
 
 
29,142
 
 
 
167,680
 
Netting
 
 
(104,415
)
 
 
(15,363
)
 
 
(119,778
)
Net credit exposure
 
 
$   34,123
 
 
 
$ 13,779
 
 
 
$   47,902
 
 
As of December 2019
 
 
 
  
   
 
Less than 1 year
  
$   18,764
   
$   4,247
   
$   23,011
 
1 - 5 years
  
18,674
   
6,879
   
25,553
 
Greater than 5 years
  
60,190
   
5,896
   
66,086
 
Total
  
97,628
   
17,022
   
114,650
 
Netting
  
(78,081
)  
(8,978
)  
(87,059
)
Net credit exposure
  
$   19,547
   
$   8,044
   
$   27,591
 
In the table above:
 
•
Tenor is based on remaining contractual maturity.
 
•
Netting includes counterparty netting across tenor categories and cash and securities collateral that we consider when determining credit risk (including collateral that is not eligible for netting under U.S. GAAP). Counterparty netting within the same tenor category is included within such tenor category.
The tables below present the distribution of our net credit exposure from OTC derivatives by tenor and internally determined public rating agency equivalents.
 
                     
    
 
Investment-Grade
 
                     
$ in millions
  
AAA
   
AA
   
A
   
BBB
   
Total
 
As of March 2020
 
Less than 1 year
 
 
$   1,498
 
 
 
$   7,011
 
 
 
$ 18,890
 
 
 
$ 10,372
 
 
 
$   37,771
 
1 - 5 years
 
 
766
 
 
 
4,375
 
 
 
12,883
 
 
 
8,641
 
 
 
26,665
 
Greater than 5 years
 
 
14,862
 
 
 
8,795
 
 
 
26,521
 
 
 
23,924
 
 
 
74,102
 
Total
 
 
17,126
 
 
 
20,181
 
 
 
58,294
 
 
 
42,937
 
 
 
138,538
 
Netting
 
 
(10,392
)
 
 
(14,188
)
 
 
(48,097
)
 
 
(31,738
)
 
 
(104,415
)
Net credit exposure
 
 
$   6,734
 
 
 
$   5,993
 
 
 
$ 10,197
 
 
 
$ 11,199
 
 
 
$   34,123
 
 
As of December 2019
 
Less than 1 year
  
$
 
      326
   
$
 
   2,022
   
$
 
 10,002
   
$
 
   6,414
   
$
 
   18,764
 
1 - 5 years
  
669
   
3,196
   
8,635
   
6,174
   
18,674
 
Greater than 5 years
  
12,381
   
5,770
   
22,324
   
19,715
   
60,190
 
Total
  
13,376
   
10,988
   
40,961
   
32,303
   
97,628
 
Netting
  
(8,146
)  
(8,273
)  
(35,932
)  
(25,730
)  
(78,081
)
Net credit exposure
  
$
 
   5,230
   
$
 
   2,715
   
$
 
   5,029
   
$
 
   6,573
   
$
 
   19,547
 
                     
          
 
  
  
Non-Investment-Grade
 / Unrated
 
                     
$ in millions
  
   
   
BB or lower
   
Unrated
   
Total
 
As of March 2020
 
Less than 1 year
 
 
 
 
 
 
 
 
$   8,790
 
 
 
$      428
 
 
 
$     9,218
 
1 - 5 years
 
 
 
 
 
 
 
 
10,042
 
 
 
163
 
 
 
10,205
 
Greater than 5 years
 
 
 
 
 
 
 
 
9,577
 
 
 
142
 
 
 
9,719
 
Total
 
 
 
 
 
 
 
 
28,409
 
 
 
733
 
 
 
29,142
 
Netting
 
 
 
 
 
 
 
 
(15,254
)
 
 
(109
)
 
 
(15,363
)
Net credit exposure
 
 
 
 
 
$ 13,155
 
 
 
$      624
 
 
 
$   13,779
 
 
As of December 2019
 
Less than 1 year
  
   
   
$
 
   3,964
   
$     
 
283
   
$
 
     4,247
 
1 - 5 years
  
   
   
6,772
   
107
   
6,879
 
Greater than 5 years
  
   
5,835
   
61
   
5,896
 
Total
  
   
   
16,571
   
451
   
17,022
 
Netting
  
   
   
(8,811
)  
(167
)  
(8,978
)
Net credit exposure
  
   
$
 
   7,760
   
$     
 
284
   
$
 
     8,044
 
Lending Activities.
We manage our lending activities using the credit risk process, measures, limits and risk mitigants described above. Other lending positions, including secondary trading positions, are risk-managed as a component of market risk.
 
•
Commercial Lending.
Our commercial lending activities include lending to investment-grade and
non-investment-grade
corporate borrowers. Loans and lending commitments associated with these activities are principally used for operating and general corporate purposes or in connection with contingent acquisitions. Corporate loans may be secured or unsecured, depending on the loan purpose, the risk profile of the borrower and other factors. Our commercial lending activities also include extending loans to borrowers that are secured by commercial and other real estate.
The table below presents our credit exposure from commercial loans and lending commitments, and the concentration by industry, region and credit quality.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Loans and Lending Commitments
 
 
$221,203
 
  
$222,745
 
 
Industry
 
 
 
  
 
Consumer, Retail & Healthcare
 
 
18%
 
  
19%
 
Diversified Industrials
 
 
17%
 
  
14%
 
Financial Institutions
 
 
7%
 
  
8%
 
Funds
 
 
3%
 
  
3%
 
Natural Resources & Utilities
 
 
14%
 
  
17%
 
Real Estate
 
 
10%
 
  
10%
 
Technology, Media & Telecommunications
 
 
17%
 
  
16%
 
Other (including Special Purpose Vehicles)
 
 
14%
 
  
13%
 
Total
 
 
100%
 
  
100%
 
Region
 
 
 
  
 
Americas
 
 
73%
 
  
73%
 
EMEA
 
 
23%
 
  
22%
 
Asia
 
 
4%
 
  
5%
 
Total
 
 
100%
 
  
100%
 
Credit Quality (Credit Rating Equivalent)
 
 
 
  
 
AAA
 
 
1%
 
  
1%
 
AA
 
 
4%
 
  
5%
 
A
 
 
14%
 
  
13%
 
BBB
 
 
28%
 
  
27%
 
BB or lower
 
 
53%
 
  
54%
 
Total
 
 
100%
 
  
100%
 
 
•
Wealth Management, Residential Real Estate and Other Lending.
We extend wealth management loans and lending commitments to private bank clients, substantially all of which are secured by commercial and residential real estate, securities or other assets. The fair value of the collateral received against such loans and lending commitments generally exceeds their carrying value.
   
145
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
We also have residential real estate and other lending exposures, which include purchased residential real estate and installment loans and commitments to purchase such loans (including distressed loans) and securities.
The table below presents our credit exposure from Wealth management, residential real estate and other lending, and the concentration by region.
 
         
         
$ in millions
  
Wealth Management
   
Residential Real Estate and Other
 
As of March 2020
 
 
 
  
 
Credit Exposure
 
 
$32,902
 
 
 
$10,582
 
 
Americas
 
 
89%
 
 
 
75%
 
EMEA
 
 
9%
 
 
 
25%
 
Asia
 
 
2%
 
 
 
–
 
Total
 
 
100%
 
 
 
100%
 
 
As of December 2019
 
 
 
  
 
Credit Exposure
  
$30,668
   
$10,885
 
 
Americas
  
89%
   
74%
 
EMEA
  
9%
   
26%
 
Asia
  
2%
   
–
 
Total
  
100%
   
100%
 
 
•
Installment and Credit Card Lending.
We originate installment and credit card loans. Our credit exposure to installment loans was $4.83 billion as of March 2020 and $4.75 billion as of December 2019 and our credit exposure to credit card loans was $2.08 billion as of March 2020 and $1.86 billion as of December 2019.
See Note 9 to the consolidated financial statements for further information about U.S. state concentrations and the credit quality indicators of installment and credit card loans.
Securities Financing Transactions.
We enter into securities financing transactions in order to, among other things, facilitate client activities, invest excess cash, acquire securities to cover short positions and finance certain activities. We bear credit risk related to resale agreements and securities borrowed only to the extent that cash advanced or the value of securities pledged or delivered to the counterparty exceeds the value of the collateral received. We also have credit exposure on repurchase agreements and securities loaned to the extent that the value of securities pledged or delivered to the counterparty for these transactions exceeds the amount of cash or collateral received. Securities collateral obtained for securities financing transactions primarily includes U.S. and
non-U.S.
government and agency obligations.
The table below presents our credit exposure from securities financing transactions and the concentration by industry, region and credit quality.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Securities Financing Transactions
 
 
$30,344
 
  
$26,958
 
 
Industry
 
 
 
  
 
Financial Institutions
 
 
32%
 
  
37%
 
Funds
 
 
28%
 
  
27%
 
Municipalities & Nonprofit
 
 
4%
 
  
5%
 
Sovereign
 
 
34%
 
  
28%
 
Other (including Special Purpose Vehicles)
 
 
2%
 
  
3%
 
Total
 
 
100%
 
  
100%
 
Region
 
 
 
  
 
Americas
 
 
22%
 
  
38%
 
EMEA
 
 
52%
 
  
39%
 
Asia
 
 
26%
 
  
23%
 
Total
 
 
100%
 
  
100%
 
Credit Quality (Credit Rating Equivalent)
 
 
 
  
 
AAA
 
 
11%
 
  
15%
 
AA
 
 
28%
 
  
27%
 
A
 
 
43%
 
  
39%
 
BBB
 
 
11%
 
  
9%
 
BB or lower
 
 
5%
 
  
6%
 
Unrated
 
 
2%
 
  
4%
 
Total
 
 
100%
 
  
100%
 
The table above reflects both netting agreements and collateral that we consider when determining credit risk.
Other Credit Exposures.
We are exposed to credit risk from our receivables from brokers, dealers and clearing organizations and customers and counterparties. Receivables from brokers, dealers and clearing organizations primarily consist of initial margin placed with clearing organizations and receivables related to sales of securities which have traded, but not yet settled. These receivables generally have minimal credit risk due to the low probability of clearing organization default and the short-term nature of receivables related to securities settlements. Receivables from customers and counterparties generally consist of collateralized receivables related to customer securities transactions and generally have minimal credit risk due to both the value of the collateral received and the short-term nature of these receivables.
   
Goldman Sachs March 2020 Form 10-Q
 
146
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
The table below presents our other credit exposures and the concentration by industry, region and credit quality.
 
         
    
 
As of
 
         
$ in millions
 
 
March 2020
 
  
December 2019
 
Other Credit Exposures
 
 
$61,139
 
  
$44,931
 
 
Industry
 
 
 
  
 
Financial Institutions
 
 
80%
 
  
86%
 
Funds
 
 
11%
 
  
8%
 
Natural Resources & Utilities
 
 
1%
 
  
1%
 
Other (including Special Purpose Vehicles)
 
 
8%
 
  
5%
 
Total
 
 
100%
 
  
100%
 
Region
 
 
 
  
 
Americas
 
 
48%
 
  
49%
 
EMEA
 
 
40%
 
  
41%
 
Asia
 
 
12%
 
  
10%
 
Total
 
 
100%
 
  
100%
 
Credit Quality (Credit Rating Equivalent)
 
 
 
  
 
AAA
 
 
3%
 
  
2%
 
AA
 
 
52%
 
  
56%
 
A
 
 
24%
 
  
23%
 
BBB
 
 
9%
 
  
7%
 
BB or lower
 
 
11%
 
  
11%
 
Unrated
 
 
1%
 
  
1%
 
Total
 
 
100%
 
  
100%
 
The table above reflects collateral that we consider when determining credit risk.
Selected Exposures
We have credit and market exposures, as described below, that have had heightened focus due to recent events and broad market concerns. Credit exposure represents the potential for loss due to the default or deterioration in credit quality of a counterparty or borrower. Market exposure represents the potential for loss in value of our long and short positions due to changes in market prices.
Country Exposures.
High inflation in Turkey combined with current account deficits and significant depreciation of the Turkish Lira has led to concerns about its economic stability. As of March 2020, our total credit exposure to Turkey was $1.52 billion, which was with
non-sovereign
counterparties or borrowers. Such exposure consisted of $1.10 billion related to OTC derivatives, $411 million related to loans and lending commitments and $12 million related to secured receivables. After taking into consideration the benefit of Turkish corporate and sovereign collateral and other risk mitigants provided by Turkish counterparties, our net credit exposure was $524 million. Our total market exposure to Turkey as of March 2020 was not material.
Liquidity pressures prompted the Argentine government to delay payment on certain debt obligations, and announce its intention to restructure most of its bonds, worsening the country’s economic distress. As of March 2020, our total credit exposure to Argentina was $182 million, which was with
non-sovereign
counterparties or borrowers, and was primarily related to loans and lending commitments. Our total market exposure to Argentina as of March 2020 was not material.
The restructuring of Lebanon’s sovereign debt has led to concerns about its financial stability. As of March 2020, our total credit exposure to Lebanon was $210 million, substantially all of which related to loans and lending commitments with
non-sovereign
borrowers. Our total market exposure to Lebanon as of March 2020 was not material.
Economic, social and political factors have led to concerns that Ecuador may default on its sovereign debt. As of March 2020, our total credit exposure to Ecuador was $792 million, which was with sovereign counterparties or borrowers. Such exposure consisted of $367 million related to loans and lending commitments and $425 million related to OTC derivatives. After taking into consideration the benefit of highly liquid collateral, our net credit exposure was $307 million. Our total market exposure to Ecuador as of March 2020 was not material.
The potential restructuring of Zambia’s sovereign debt and significant depreciation of the Zambian kwacha has led to concerns about Zambia’s financial stability. As of March 2020, our total credit exposure to Zambia was $115 million and was related to loans and lending commitments with
non-sovereign
borrowers. Our total market exposure to Zambia as of March 2020 was not material.
Venezuela has delayed payments on its sovereign debt and its political situation remains unclear. As of March 2020, our total credit and market exposure for Venezuela was not material.
   
147
 
Goldman Sachs March 2020 Form 10-Q
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
We have a comprehensive framework to monitor, measure and assess our country exposures and to determine our risk appetite. We determine the country of risk by the location of the counterparty, issuer or underlier’s assets, where they generate revenue, the country in which they are headquartered, the jurisdiction where a claim against them could be enforced, and/or the government whose policies affect their ability to repay their obligations. We monitor our credit exposure to a specific country both at the individual counterparty level, as well as at the aggregate country level. See “Stress Tests” for information about stress tests that are designed to estimate the direct and indirect impact of events involving the above countries.
Industry Exposures.
The recent decline in oil prices has led to market concerns regarding the creditworthiness of certain companies in the oil and gas industry. As of March 2020, our credit exposure to oil and gas companies related to loans and lending commitments was $12.44 billion ($3.96 billion of loans and $8.48 billion of lending commitments). Such exposure included $6.81 billion of exposure to
non-investment-grade
counterparties ($3.07 billion related to loans and $3.74 billion related to lending commitments), of which 71% was secured. In addition, we have exposure to our clients in the oil and gas industry arising from derivatives. As of March 2020, our credit exposure related to derivatives and receivables with oil and gas companies was $2.14 billion ($978 million with investment-grade counterparties and $1.16 billion with
non-investment-grade
counterparties). After taking into consideration the benefit of $624 million of hedges, our net credit exposure was $13.96 billion. As of March 2020, our market exposure related to oil and gas companies was $(1.92) billion, which was primarily to investment-grade issuers or underliers.
The sharp decline in economic activity as a result of the
COVID-19
pandemic has resulted in a significant impact to the gaming and lodging industry. As of March 2020, our credit exposure to gaming and lodging companies (including hotel owners and operators) related to loans and lending commitments was $3.44 billion ($1.27 billion of loans and $2.17 billion of lending commitments). Such exposure included $2.14 billion of exposure to
non-investment-grade
counterparties ($996 million related to loans and $1.15 billion related to lending commitments), of which 84% was secured. In addition, we extend loans that are secured by hotel properties. As of March 2020, our exposure related to such loans and lending commitments was $1.31 billion and was to non-investment-grade counterparties. In addition, we have exposure to our clients in the gaming and lodging industry arising from derivatives. As of March 2020, our credit exposure related to derivatives and receivables with gaming and lodging companies was $228 million, primarily with
non-investment
-grade counterparties. As of March 2020, our market exposure related to gaming and lodging companies was not material.
Concerns surrounding the
COVID-19
pandemic have resulted in a sharp decline in travel which has significantly impacted the airline industry. As of March 2020, our credit exposure to airline companies related to loans and lending commitments was $2.81 billion ($1.88 billion of loans and $932 million of lending commitments). Such exposure included $2.37 billion of exposure to
non-investment-grade
counterparties ($1.75 billion related to loans and $615 million related to lending commitments), of which 82% was secured. In addition, we have exposure to our clients in the airline industry arising from derivatives. As of March 2020, our credit exposure related to derivatives and receivables with airline companies was $1.76 billion ($885 million with investment-grade counterparties and $870 million with non-investment-grade counterparties). After taking into consideration the benefit of $407 million of hedges, our net credit exposure was $4.16 billion. As of March 2020, our market exposure related to airline companies was $(186) million, which was primarily to
non-
investment-grade issuers or underliers.
   
Goldman Sachs March 2020 Form 10-Q
 
148
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Operational Risk Management
Overview
Operational risk is the risk of an adverse outcome resulting from inadequate or failed internal processes, people, systems or from external events. Our exposure to operational risk arises from routine processing errors, as well as extraordinary incidents, such as major systems failures or legal and regulatory matters.
Potential types of loss events related to internal and external operational risk include:
 
•
Clients, products and business practices;
 
 
 
 
 
 
•
Execution, delivery and process management;
 
 
 
 
 
 
•
Business disruption and system failures;
 
 
 
 
 
 
•
Employment practices and workplace safety;
 
 
 
 
 
 
•
Damage to physical assets;
 
 
 
 
 
 
•
Internal fraud; and
 
 
 
 
 
 
•
External fraud.
 
 
 
 
 
Operational Risk, which is independent of our revenue-producing units and reports to our chief risk officer, has primary responsibility for developing and implementing a formalized framework for assessing, monitoring and managing operational risk with the goal of maintaining our exposure to operational risk at levels that are within our risk appetite.
Operational Risk Management Process
Our process for managing operational risk includes the critical components of our risk management framework described in the “Overview and Structure of Risk Management,” including a comprehensive data collection process, as well as firmwide policies and procedures, for operational risk events.
We combine
top-down
and
bottom-up
approaches to manage and measure operational risk. From a
top-down
perspective, our senior management assesses firmwide and business-level operational risk profiles. From a
bottom-up
perspective, our first and second lines of defense are responsible for risk identification and risk management on a
day-to-day
basis, including escalating operational risks to senior management.
We maintain a comprehensive control framework designed to provide a well-controlled environment to minimize operational risks. The Firmwide Operational Risk and Resilience Committee is responsible for overseeing operational risk, and for ensuring our business and operational resilience.
Our operational risk management framework is in part designed to comply with the operational risk measurement rules under the Capital Framework and has evolved based on the changing needs of our businesses and regulatory guidance.
We have established policies that require all employees to report and escalate operational risk events. When operational risk events are identified, our policies require that the events be documented and analyzed to determine whether changes are required in our systems and/or processes to further mitigate the risk of future events.
We use operational risk management applications to capture and organize operational risk event data and key metrics. One of our key risk identification and assessment tools is an operational risk and control self-assessment process, which is performed by our managers. This process consists of the identification and rating of operational risks, on a forward-looking basis, and the related controls. The results from this process are analyzed to evaluate operational risk exposures and identify businesses, activities or products with heightened levels of operational risk.
Risk Measurement
We measure our operational risk exposure using both statistical modeling and scenario analyses, which involve qualitative and quantitative assessments of internal and external operational risk event data and internal control factors for each of our businesses. Operational risk measurement also incorporates an assessment of business environment factors, including:
 
•
Evaluations of the complexity of our business activities;
 
 
 
 
 
 
•
The degree of automation in our processes;
 
 
 
 
 
 
•
New activity information;
 
 
 
 
 
 
•
The legal and regulatory environment; and
 
 
 
 
 
 
•
Changes in the markets for our products and services, including the diversity and sophistication of our customers and counterparties.
 
 
 
 
 
The results from these scenario analyses are used to monitor changes in operational risk and to determine business lines that may have heightened exposure to operational risk. These analyses are used in the determination of the appropriate level of operational risk capital to hold. We also perform firmwide stress tests. See “Overview and Structure of Risk Management” for information about firmwide stress tests.
   
149
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Types of Operational Risks
Increased reliance on technology and third-party relationships has resulted in increased operational risks, such as information and cyber security risk, third-party risk and business resilience risk. We manage those risks as follows:
Information and Cyber Security Risk.
Information and cyber security risk is the risk of compromising the confidentiality, integrity or availability of our data and systems, leading to an adverse impact to us, our reputation, our clients and/or the broader financial system. We seek to minimize the occurrence and impact of unauthorized access, disruption or use of information and/or information systems. We deploy and operate preventive and detective controls and processes to mitigate emerging and evolving information security and cyber security threats, including monitoring our network for known vulnerabilities and signs of unauthorized attempts to access our data and systems. There is increased information risk through diversification of our data across external service providers, including use of a variety of cloud-provided or -hosted services and applications. See “Risk Factors” in Part I, Item 1A of the 2019 Form
 10-K
for further information about information and cyber security risk.
Third-Party Risk.
Third-party risk, including vendor risk, is the risk of an adverse impact due to reliance on third parties performing services or activities on our behalf. These risks may include legal, regulatory, information security, reputational, operational or any other risks inherent in engaging a third party. We identify, manage and report key third-party risks and conduct due diligence across multiple risk domains, including information security and cyber security, resilience and additional third-party dependencies. The Third-Party Risk Program monitors, reviews and reassesses third-party risks on an ongoing basis. See “Risk Factors” in Part II, Item 1A of this Form 10-Q and Part I, Item 1A of the 2019 Form
 10-K
for further information about third-party risk.
Business Resilience Risk.
Business resilience risk is the risk of disruption to our critical processes. We monitor threats and assess risks and seek to ensure our state of readiness in the event of a significant operational disruption to the normal operations of our critical functions or their dependencies, such as, critical facilities, systems, third parties, data and/or personnel. We approach BCP through the lens of business and operational resilience. The resilience framework defines the fundamental principles for BCP and crisis management to ensure that critical functions can continue to operate in the event of a disruption. The business continuity program is comprehensive, consistent firmwide and
up-to-date,
incorporating new information, techniques and technologies as and when they become available, and our resilience recovery plans incorporate and test specific and measurable recovery time objectives in accordance with local market best practices and regulatory requirements, and under specific scenarios. See “Regulatory and Other Matters — Other Matters” for information about the impact of the
COVID-19
pandemic. See “Business — Business Continuity and Information Security” in Part I, Item 1 of the 2019 Form
 10-K
for further information about business continuity.
Model Risk Management
Overview
Model risk is the potential for adverse consequences from decisions made based on model outputs that may be incorrect or used inappropriately. We rely on quantitative models across our business activities primarily to value certain financial assets and liabilities, to monitor and manage our risk, and to measure and monitor our regulatory capital.
Model Risk, which is independent of our revenue-producing units, model developers, model owners and model users, and reports to our chief risk officer, has primary responsibility for assessing, monitoring and managing our model risk through firmwide oversight across our global businesses, and provides periodic updates to senior management, risk committees and the Risk Committee of the Board.
Our model risk management framework is managed through a governance structure and risk management controls, which encompass standards designed to ensure we maintain a comprehensive model inventory, including risk assessment and classification, sound model development practices, independent review and model-specific usage controls. The Firmwide Model Risk Control Committee oversees our model risk management framework.
   
Goldman Sachs March 2020 Form 10-Q
 
150
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Model Review and Validation Process
Model Risk consists of quantitative professionals who perform an independent review, validation and approval of our models. This review includes an analysis of the model documentation, independent testing, an assessment of the appropriateness of the methodology used, and verification of compliance with model development and implementation standards.
We regularly refine and enhance our models to reflect changes in market or economic conditions and our business mix. All models are reviewed on an annual basis, and new models or significant changes to existing models and their assumptions are approved prior to implementation.
The model validation process incorporates a review of models and trade and risk parameters across a broad range of scenarios (including extreme conditions) in order to critically evaluate and verify:
 
•
The model’s conceptual soundness, including the reasonableness of model assumptions, and suitability for intended use;
 
 
 
 
 
 
•
The testing strategy utilized by the model developers to ensure that the models function as intended;
 
 
 
 
 
 
•
The suitability of the calculation techniques incorporated in the model;
 
 
 
 
 
 
•
The model’s accuracy in reflecting the characteristics of the related product and its significant risks;
 
 
 
 
 
 
•
The model’s consistency with models for similar products; and
 
 
 
 
 
 
•
The model’s sensitivity to input parameters and assumptions.
 
 
 
 
 
See “Critical Accounting Policies — Fair Value — Review of Valuation Models,” “Liquidity Risk Management,” “Market Risk Management,” “Credit Risk Management” and “Operational Risk Management” for further information about our use of models within these areas.
Available Information
Our internet address is
www.goldmansachs.com
and the investor relations section of our website is located at
www.goldmansachs.com/investor-relations
, where we make available, free of charge, our annual reports on Form
 10-K,
quarterly reports on Form
 10-Q
and current reports on Form
 8-K
and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as well as proxy statements, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Also posted on our website, and available in print upon request of any shareholder to our Investor Relations Department (Investor Relations), are our certificate of incorporation and
by-laws,
charters for our Audit, Risk, Compensation, Corporate Governance and Nominating, and Public Responsibilities Committees, our Policy Regarding Director Independence Determinations, our Policy on Reporting of Concerns Regarding Accounting and Other Matters, our Corporate Governance Guidelines and our Code of Business Conduct and Ethics governing our directors, officers and employees. Within the time period required by the SEC, we will post on our website any amendment to the Code of Business Conduct and Ethics and any waiver applicable to any executive officer, director or senior financial officer.
Our website also includes information about (i) purchases and sales of our equity securities by our executive officers and directors; (ii) disclosure relating to certain
non-GAAP
financial measures (as defined in the SEC’s Regulation G) that we may make public orally, telephonically, by webcast, by broadcast or by other means; (iii) DFAST results; (iv) the public portion of our resolution plan submission; (v) our Pillar 3 disclosure; and (vi) our average daily LCR.
Investor Relations can be contacted at The Goldman Sachs Group, Inc., 200 West Street, 29th Floor, New York, New York 10282, Attn: Investor Relations, telephone:
212-902-0300,
e-mail:
gs-investor-relations@gs.com
. We use our website, our Twitter account (
twitter.com/GoldmanSachs
), our Instagram account (
instagram.com/GoldmanSachs
) and other social media channels as additional means of disclosing public information to investors, the media and others. Our officers may use similar social media channels to disclose public information. It is possible that certain information we or our officers post on our website and on social media could be deemed material, and we encourage investors, the media and others interested in Goldman Sachs to review the business and financial information we or our officers post on our website and on the social media channels identified above. The information on our website and those social media channels is not incorporated by reference into this Form
 10-Q.
   
151
 
Goldman Sachs March 2020 Form 10-Q
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
     
Cautionary Statement Pursuant to the U.S. Private Securities Litigation Reform Act of 1995
 
 
 
 
 
 
 
We have included in this Form
 10-Q,
and our management may make, statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside our control.
These statements may relate to, among other things, (i) our future plans and results, including our target ROE, ROTE, efficiency ratio and CET1 capital ratio, and how they can be achieved,
(ii) various legal proceedings, governmental investigations or other contingencies as set forth in Notes 27 and 18 to the consolidated financial statements in Part I, Item 1 of this Form
 10-Q,
(iii) the results of stress tests, (iv) the objectives and effectiveness of our business continuity plan, information security program, risk management and liquidity policies, (v) our resolution plan and resolution strategy and their implications for stakeholders, (vi) the design and effectiveness of our resolution capital and liquidity models and triggers and alerts framework, (vii) trends in or growth opportunities for our businesses, including the timing and benefits of business and strategic initiatives and changes in and the importance of the efficiency ratio, (viii) the effect of changes to regulations, as well as our future status, activities or reporting under banking and financial regulation, (ix) our NSFR, (x) our level of future compensation expense as a percentage of operating expenses, (xi) our investment banking transaction backlog, (xii) our expected tax rate, (xiii) the future state of our liquidity and regulatory capital ratios, and our prospective capital distributions, (xiv) our expected interest income, (xv) our credit exposures, (xvi) our expected provisions for credit losses, (xvii) our preparations for Brexit, (xviii) the replacement of LIBOR and other IBORs and our program for the transition to alternative risk-free reference rates, (xix) the adequacy of our allowance for credit losses, (xx) the projected growth of our deposits and associated interest expense savings, (xxi) the projected growth of our installment loan and credit card businesses, (xxii) our business initiatives, including
those related to transaction banking
and new consumer financial products, (xxiii) our expense savings initiatives and increasing use of strategic locations, (xxiv) our planned 2020 parent vanilla debt issuances, (xxv) the amount of GCLA we expect to hold, (xxvi) our expected SCB and
G-SIB
surcharge,
(xxvii) the impact of the
COVID-19
pandemic on our business, results, financial position and liquidity and (xxviii) expenses we may incur, including future litigation expense and those associated with investing in our installment lending, credit card and transaction banking activities.
By identifying these statements for you in this manner, we are alerting you to the possibility that our actual results, financial condition and liquidity may differ, possibly materially, from the anticipated results, financial condition and liquidity in these forward-looking statements. Important factors that could cause our results, financial condition and capital actions to differ from those in these statements include, among others, those described below and in “Risk Factors” in Part II, Item 1A of this Form
 10-Q
and in Part I, Item 1A of the 2019 Form
 10-K.
Statements about our investment banking transaction backlog are subject to the risk that such transactions may be modified or may not be completed at all and related net revenues may not be realized or may be materially less than expected. Important factors that could have such a result include, for underwriting transactions, a decline or weakness in general economic conditions, outbreak of hostilities, volatility in the securities markets or an adverse development with respect to the issuer of the securities and, for financial advisory transactions, a decline in the securities markets, an inability to obtain adequate financing, an adverse development with respect to a party to the transaction or a failure to obtain a required regulatory approval. For information about other important factors that could adversely affect our investment banking transactions, see “Risk Factors” in Part II, Item 1A of this Form
 10-Q
and in Part I, Item 1A of the 2019 Form
 10-K.
Statements about our future effective income tax rate are subject to the risk that it may differ from the anticipated rate indicated in such statements, possibly materially, due to, among other things, changes in our earnings mix, our profitability and entities in which we generate profits, the assumptions we have made in forecasting our expected tax rate, as well as guidance that may be issued by the U.S. Internal Revenue Service.
Statements about our NSFR and SCB are based on our current interpretation and expectations of the relevant proposal and final rule, and reflect significant assumptions about how our NSFR and SCB are calculated. Our actual NSFR will depend on the final rule and, for the SCB, the results of the applicable supervisory stress tests, and the methods used to calculate our NSFR and SCB may differ, possibly materially, from those used to calculate our NSFR and SCB for future disclosures.
   
Goldman Sachs March 2020 Form 10-Q
 
152
 
 
 
 
 
Table of Contents
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Statements about the level of compensation expense, including as a percentage of operating expenses, and our efficiency ratio as our platform business initiatives reach scale are subject to the risks that the compensation and other costs to operate our businesses, including platform initiatives, may be greater than currently expected.
Statements about our expected provisions for credit losses are subject to the risk that actual credit losses may differ and our expectations may change, possibly materially, from that currently anticipated due to, among other things, changes to the composition of our loan portfolio and changes in the economic environment in future periods and our forecasts of future economic conditions, as well as changes in our models, policies and other management judgments.
Statements about the projected growth of our deposits and associated interest expense savings, and our installment loan and credit card businesses, are subject to the risk that actual growth may differ, possibly materially, from that currently anticipated due to, among other things, changes in interest rates and competition from other similar products.
Statements about our target ROE, ROTE, efficiency ratio, and expense savings, and how they can be achieved, are based on our current expectations regarding our business prospects and are subject to the risk that we may be unable to achieve our targets due to, among other things, changes in our business mix, lower profitability of new business initiatives, increases in technology and other costs to launch and bring new business initiatives to scale, and increases in liquidity requirements.
Statements about our target ROE, ROTE and CET1 capital ratio, and how they can be achieved, are based on our current expectations regarding the capital requirements applicable to us and are subject to the risk that our actual capital requirements may be higher than currently anticipated because of, among other factors, changes in the regulatory capital requirements applicable to us resulting from changes in regulations or the interpretation or application of existing regulations or changes in the nature and composition of our activities.
Statements about the timing, costs and benefits of business and expense savings initiatives, the level and composition of more durable revenues and increases in market share are based on our current expectations regarding our ability to implement these initiatives and actual results may differ, possibly materially, from current expectations due to, among other things, a delay in the timing of these initiatives, increased competition and an inability to reduce expenses and grow businesses with durable revenues.
Statements about planned 2020 parent vanilla debt issuances and the amount of GCLA we expect to hold are subject to the risk that actual issuances and GCLA levels may differ, possibly materially, from that currently expected due to changes in market conditions, business opportunities or our funding and projected liquidity needs.
Statements about the future state of our liquidity and regulatory capital ratios, as well as our prospective capital distributions, are subject to the risk that our actual liquidity, regulatory capital ratios and capital distributions may differ, possibly materially, from what is currently expected due to, among other things, the need to use capital to support clients, increased regulatory requirements and changes to the composition of our balance sheet.
   
153
 
Goldman Sachs March 2020 Form 10-Q
 
 
Table of Contents
Item 3.    Quantitative and Qualitative Disclosures About Market Risk
Quantitative and qualitative disclosures about market risk are set forth in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management” in Part I, Item 2 of this Form
 10-Q.
Item 4.    Controls and Procedures
As of the end of the period covered by this report, an evaluation was carried out by our management, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule
 13a-15(e)
under the Exchange Act). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures were effective as of the end of the period covered by this report. In addition, no change in our internal control over financial reporting (as defined in Rule
 13a-15(f)
under the Exchange Act) occurred during the quarter ended March 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1.    Legal Proceedings
We are involved in a number of judicial, regulatory and arbitration proceedings concerning matters arising in connection with the conduct of our businesses. Many of these proceedings are in early stages, and many of these cases seek an indeterminate amount of damages. We have estimated the upper end of the range of reasonably possible aggregate loss for matters where we have been able to estimate a range and we believe, based on currently available information, that the results of matters where we have not been able to estimate a range of reasonably possible loss, in the aggregate, will not have a material adverse effect on our financial condition, but may be material to our operating results in a given period. Given the range of litigation and investigations presently under way, our litigation expenses can be expected to remain high. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Use of Estimates” in Part I, Item 2 of this Form
 10-Q.
See Notes 18 and 27 to the consolidated financial statements in Part I, Item 1 of this Form
 10-Q
for information about our reasonably possible aggregate loss estimate and judicial, regulatory and legal proceedings.
Item 1A.    Risk Factors
Our businesses, financial condition, liquidity and results of operations have been, and will likely continue to be, adversely affected by the emergence of the
COVID-19
pandemic.
The emergence of the global outbreak of the coronavirus
(COVID-19)
pandemic has created economic and financial disruptions that during the quarter adversely affected, and are likely to continue to adversely affect, our business, financial condition, liquidity and results of operations. The extent to which the
COVID-19
pandemic will continue to negatively affect our businesses, financial condition, liquidity and results of operations will depend on future developments, which are highly uncertain and cannot be predicted.
The
COVID-19
pandemic has contributed to (i) the sudden and significant reduction in the valuation of the equity, fixed-income and commodity markets and the significant increase in the volatility of those markets; (ii) a decrease in the rates and yields on U.S. Treasury securities, in some cases declining below zero; (iii) a major reduction in merger and acquisition activity and significant uncertainty about whether previously announced deals will be completed or restructured; (iv) a major reduction in equity new issue activity; (v) significantly more challenging conditions in the new issue debt market; (vi) significant draws in credit lines, including syndicated credit lines, as clients seek to increase liquidity; (vii) the risk that hedges become less effective, including, for example, due to the movement of short and long positions in U.S. Treasuries and the assets they hedge; (viii) significant increases in collateral calls and disputes as the valuation of derivative positions and, in some cases, collateral has become more challenging; 
(ix) ratings downgrades, credit deterioration and defaults in many industries, including oil and gas, gaming and lodging, and airlines; 
(x) a reduction in assets under supervision as the values of assets have declined; and (xi) heightened cybersecurity, information security and operational risks as a result of work-from-home arrangements.
The effects of the
COVID-19
pandemic on economic and market conditions have also increased demands on our liquidity as we meet client needs. Likewise, these adverse developments have affected our capital and leverage ratios. We have ceased purchases of our common stock in order to deploy more capital and liquidity to meet the needs of our clients. The effects of the
COVID-19
pandemic may cause us to continue to limit future capital distributions.
Governmental authorities worldwide have taken increased measures to stabilize the markets and support economic growth. The success of these measures is unknown and they may not be sufficient to address the market dislocations or avert severe and prolonged reductions in economic activity. We also face an increased risk of client disputes, litigation and governmental and regulatory scrutiny as a result of the effects of
COVID-19
on economic and market conditions.
   
Goldman Sachs March 2020 Form 10-Q
 
154
 
 
Table of Contents
The length of the pandemic and the efficacy of the extraordinary measures being put in place to address it are unknown. Until the pandemic subsides, we expect continued draws on lines of credit, reduced activity levels in investment banking, reduced revenues in our asset management and wealth management businesses and increased client defaults, including defaults in unsecured loans. Even after the pandemic subsides, the U.S. economy, as well as most other major economies, may continue to experience a recession, and we anticipate our businesses would be materially and adversely affected by a prolonged recession in the U.S. and other major markets.
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds
The table below presents purchases made by or on behalf of Group Inc. or any “affiliated purchaser” (as defined in Rule
 10b-18(a)(3)
under the Exchange Act) of our common stock during the three months ended March 2020.
 
                 
                 
 
 
Total Shares Purchased
 
 
 
Average Price Paid Per Share
 
 
 
Total Shares Purchased as Part of a Publicly Announced Program
 
 
 
Maximum Shares That May Yet Be Purchased Under the Program
 
January
 
 
4,985,018
 
 
 
$241.74
 
 
 
4,981,542
 
 
 
52,869,372
 
February
 
 
3,175,610
 
 
 
$227.90
 
 
 
3,175,610
 
 
 
49,693,762
 
March
 
 
–
 
 
 
–
 
 
 
–
 
 
 
49,693,762
 
Total
 
 
8,160,628
 
 
 
 
 
 
8,157,152
 
 
 
 
 
 
In the table above, total shares purchased during January 2020 included 3,476 shares remitted to satisfy statutory withholding taxes on the delivery of equity-based awards.
Since March 2000, our Board has approved a repurchase program authorizing repurchases of up to 605 million shares of our common stock. The repurchase program is effected primarily through regular open-market purchases (which may include repurchase plans designed to comply with Rule
 10b5-1
and accelerated share repurchases), the amounts and timing of which are determined primarily by our current and projected capital position, but which may also be influenced by general market conditions and the prevailing price and trading volumes of our common stock. The repurchase program has no set expiration or termination date. Prior to repurchasing common stock, we must receive confirmation that the FRB does not object to such capital action.
Item 6.    Exhibits
Exhibits
 
     
 
  3.1
  
Restated Certificate of Incorporation of The Goldman Sachs Group, Inc., amended as of March 12, 2020.
     
 
  15.1
  
Letter re: Unaudited Interim Financial Information.
     
 
  31.1
  
Rule 13a-14(a) Certifications.
     
 
  32.1
  
Section 1350 Certifications (This information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934).
     
 
101
  
Pursuant to Rules 405 and 406 of Regulation
S-T,
the following information is formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Consolidated Statements of Earnings for the three months ended March 31, 2020 and March 31, 2019, (ii) the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2020 and March 31, 2019, (iii) the Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019, (iv) the Consolidated Statements of Changes in Shareholders’ Equity for the three months ended March 31, 2020 and March 31, 2019, (v) the Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and March 31, 2019, (vi) the notes to the Consolidated Financial Statements and (vii) the cover page.
     
 
104
  
Cover Page Interactive Data File (formatted in iXBRL in Exhibit 101).
 
 
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
     
The Goldman Sachs Group, Inc.
     
By:
 
/s/    
 
Stephen M. Scherr
Name:    
 
 
Stephen M. Scherr
Title:
 
 
Chief Financial Officer
(Principal Financial Officer)
Date:
 
 
April 30, 2020
     
By:
 
/s/    
 
Sheara Fredman
Name:
 
 
Sheara Fredman
Title:
 
 
Chief Accounting Officer
(Principal Accounting Officer)
Date:
 
 
April 30, 2020
 
 
   
155
 
Goldman Sachs March 2020 Form 10-Q
 
 

What is the market capitalization of a company?

The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.
In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.

DISCLAIMER

CompaniesMarketCap is not associated in any way with CoinMarketCap.com
Stock prices are delayed, the delay can range from a few minutes to several hours.
Company logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. Companies Marketcap displays them for editorial purposes only.

Contact

For inquiries or if you want to report a problem write to hello@8marketcap.com

Links

- Privacy policy

- Terms and conditions

© 2025 CompaniesMarketcap.com