Marcus Goldman
Encyclopedia
Marcus Goldman was a German-born American
businessman and entrepreneur. He was born in Trappstadt
, Germany
and emigrated to the United States in 1848. He was the founder of Goldman Sachs
, which is now one of the world's largest and most prestigious global investment banks and is now a bank holding company.
, in 1848 during the first great wave of Jewish immigration to America, resulting from the Revolutions of 1848 in the German states
.
Upon arriving in America, he worked as a peddler with a horse-drawn cart and later as a shopkeeper in Philadelphia. There, Goldman met and married eighteen year old Bertha Goldman (no relation), who had also emigrated from Germany in 1848.
In 1869, with his wife and five children, Goldman relocated to New York City
and hung out a shingle on Pine Street in lower Manhattan
, with the legend Marcus Goldman & Co., setting himself up as a broker of IOU
s.
From his earliest days of his business, Goldman was able to singlehandedly transact as much as $5 million worth of commercial paper
a year. Successful though he was, Goldman's business was insignificant compared to that of the other Jewish-German bankers of the day. Concerns like J. & W. Seligman & Co.
, with working capital
of $6 million in 1869, were already modern-day investment bankers immersed in underwriting and trading railroad bonds.
Goldman's youngest daughter, Louisa, married Samuel Sachs
, the son of close friends and fellow Lower Franconia
, Bavaria
immigrants. Louisa's older sister and Sam's older brother had already married.
In 1882, Marcus Goldman invited his son-in-law Samuel to join him in the business and changed the firm's name to M. Goldman and Sachs. Business boomed—by 1880 the new firm was turning over $30 million worth of paper a year—and the firm's capital was now $100,000, all of it the senior partner's.
For almost fifty years after its inception, all of Goldman Sachs's partners were members of intermarried families. In 1885, Goldman took his own son Henry and his son-in-law Ludwig Dreyfuss into the business as junior partners and the firm adopted its present name, Goldman Sachs & Co. In 1894, Henry Sachs entered the firm, and in 1896, the firm joined the New York Stock Exchange
.
When Marcus Goldman retired, he left the firm in the hands of his son Henry Goldman
and his son-in-law Samuel Sachs. In 1904, two of Sam Sachs's sons, Arthur and Paul, joined the firm straight out of Harvard University
.
In the summer of 1904, Marcus Goldman died. From humble beginnings, the institution he left behind would soon become a full-service investment bank. With the advent of underwriting, coupled with the extensive lending, foreign exchange
, and trading operations, the structure of Goldman Sachs was in place. Although much smaller and less sophisticated, it was already recognizable as the firm it would become.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman and entrepreneur. He was born in Trappstadt
Trappstadt
Trappstadt is a municipality in the district of Rhön-Grabfeld in Bavaria in Germany.-Famous Residents of the Village:* Joseph Brunner Born in Trappstadt and died in Altenstein - Suggested oldest Man in the World but new information suggests may have been born in 1739 * Marcus Goldman...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and emigrated to the United States in 1848. He was the founder of Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
, which is now one of the world's largest and most prestigious global investment banks and is now a bank holding company.
Biography
Goldman came from an Ashkenazi Jewish family, the son of Ella and Wolf Goldmann, a former schoolteacher and cattle dealer. He immigrated to the United States from Frankfurt am Main, GermanyGermany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, in 1848 during the first great wave of Jewish immigration to America, resulting from the Revolutions of 1848 in the German states
Revolutions of 1848 in the German states
The Revolutions of 1848 in the German states, also called the March Revolution – part of the Revolutions of 1848 that broke out in many countries of Europe – were a series of loosely coordinated protests and rebellions in the states of the German Confederation, including the Austrian Empire...
.
Upon arriving in America, he worked as a peddler with a horse-drawn cart and later as a shopkeeper in Philadelphia. There, Goldman met and married eighteen year old Bertha Goldman (no relation), who had also emigrated from Germany in 1848.
In 1869, with his wife and five children, Goldman relocated to New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
and hung out a shingle on Pine Street in lower Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
, with the legend Marcus Goldman & Co., setting himself up as a broker of IOU
IOU (debt)
An IOU is usually an informal document acknowledging debt. An IOU differs from a promissory note in that an IOU is not a negotiable instrument and does not specify repayment terms such as the time of repayment. IOUs usually specify the debtor, the amount owed, and sometimes the creditor...
s.
From his earliest days of his business, Goldman was able to singlehandedly transact as much as $5 million worth of commercial paper
Commercial paper
In the global money market, commercial paper is an unsecured promissory note with a fixed maturity of 1 to 270 days. Commercial Paper is a money-market security issued by large banks and corporations to get money to meet short term debt obligations , and is only backed by an issuing bank or...
a year. Successful though he was, Goldman's business was insignificant compared to that of the other Jewish-German bankers of the day. Concerns like J. & W. Seligman & Co.
J. & W. Seligman & Co.
J. & W. Seligman & Co., founded in 1846, was a prominent U.S. investment bank c. 1860s–1920s until the divestiture of its investment banking arm in the aftermath of the Glass–Steagall Act. The firm was involved in the financing of several major U.S. railroads in the 1870s and the construction of...
, with working capital
Working capital
Working capital is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is...
of $6 million in 1869, were already modern-day investment bankers immersed in underwriting and trading railroad bonds.
Goldman's youngest daughter, Louisa, married Samuel Sachs
Samuel Sachs
Samuel Sachs was an American investment banker. He was born in the state of Maryland to Jewish immigrants from Bavaria, Germany. Sachs, along with his longtime friend Philip Lehman of Lehman Brothers, pioneered the issuing of stock as a way for new companies to raise funds...
, the son of close friends and fellow Lower Franconia
Lower Franconia
Lower Franconia is one of the three administrative regions of Franconia in Bavaria , Germany ....
, Bavaria
Bavaria
Bavaria, formally the Free State of Bavaria is a state of Germany, located in the southeast of Germany. With an area of , it is the largest state by area, forming almost 20% of the total land area of Germany...
immigrants. Louisa's older sister and Sam's older brother had already married.
In 1882, Marcus Goldman invited his son-in-law Samuel to join him in the business and changed the firm's name to M. Goldman and Sachs. Business boomed—by 1880 the new firm was turning over $30 million worth of paper a year—and the firm's capital was now $100,000, all of it the senior partner's.
For almost fifty years after its inception, all of Goldman Sachs's partners were members of intermarried families. In 1885, Goldman took his own son Henry and his son-in-law Ludwig Dreyfuss into the business as junior partners and the firm adopted its present name, Goldman Sachs & Co. In 1894, Henry Sachs entered the firm, and in 1896, the firm joined the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
.
When Marcus Goldman retired, he left the firm in the hands of his son Henry Goldman
Henry Goldman
Henry Goldman was an American banker, son of Marcus Goldman. He was instrumental in the making of the financial conglomerate Goldman Sachs in the early twentieth century. An innovative banker, he helped list retail companies like Sears and Woolworth, despite the firms' shortage of assets...
and his son-in-law Samuel Sachs. In 1904, two of Sam Sachs's sons, Arthur and Paul, joined the firm straight out of Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
.
In the summer of 1904, Marcus Goldman died. From humble beginnings, the institution he left behind would soon become a full-service investment bank. With the advent of underwriting, coupled with the extensive lending, foreign exchange
Foreign exchange market
The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...
, and trading operations, the structure of Goldman Sachs was in place. Although much smaller and less sophisticated, it was already recognizable as the firm it would become.