Per a Bloomberg’s article, The Goldman Sachs Group GS is mulling to launch a stock-trading brokerage in Mexico with a view to buy and sell stocks locally on behalf of clients. The move will bolster its presence in Latin America’s second-largest economy.
Goldman has been carrying a license to conduct fixed income trades in Mexico for the past few years, but it seeks to expand reach to equities as well. Also, a fully functional stock brokerage would enable the bank to better compete with other Wall Street biggies providing similar services in the area.
Per the article, Goldman increased Carlos Fernandez-Aller’s responsibilities to manage the equities-trading group along with the fixed-income trading in Latin America. The company seeks to better align teams handling equities, bonds, currencies and commodities in the region.
In February, Goldman had cut its economic growth forecasts for key Latin American countries, citing weak domestic momentum and slowdown in global economy, per a Reuters article.
The company has been entering new business with a view to bolster its revenues. In March, it launched a first ever credit card in partnership with Apple. Also, it bolstered ETFs sales by agreeing to acquire Standard & Poor’s Investment Advisory Services LLC.
Goldman’s focus on capitalizing on new growth opportunities through several strategic investments, including the digital consumer lending platform, will likely boost overall business growth. However, it continues to face probes and queries from several federal agencies, which remains a concern.
Shares of the company have lost around 7% in the past six months compared with 1.6% decline of its Zacks Investment Research
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