From Breakingviews - Goldman’s Marcus is a lesson in self-made failure
The roots of Goldman’s failure are the same as its initial success: people. Lloyd Blankfein, who as Solomon’s predecessor launched Marcus, recognized that Goldman bankers weren’t experts in consumer finance. So he brought in specialists like former Discover Financial Services
Before long, tensions mounted. One source of discord, according to multiple people familiar with the situation, was the Wall Street pay structure. Goldman tends to reward managing directors generously, but more junior vice presidents would graft for sometimes one-quarter of the rewards and the hope of future promotion. The practice of working through the night is common in the investment banking division Solomon once headed but rare in consumer banking.
with Dean Witter. But it also resulted in laboriously reinventing the wheel. For example, Goldman’s engineers had to fight to host consumer banking systems on the cloud rather than on the bank’s own servers.
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