In 2025, market watchers are turning their attention to Goldman Sachs as CEO David Solomon signals a bold return to the deal table following years of internal reorganization and strategic realignment. After navigating a challenging expansion into consumer banking—which ended in a costly retreat—Solomon appears newly emboldened, positioning Goldman Sachs for “needle-moving” acquisitions that could fundamentally reshape the venerable firm’s operations and future prospects.
From Cleanup to Comeback: The Solomon Strategy
Since taking the helm in 2018, Solomon’s leadership journey has been anything but smooth sailing. Initially drifting off-course with an expensive foray into Main Street banking, the bank faced mounting regulatory scrutiny and internal dissent. Now, with that chapter largely closed, Solomon and his lieutenants are redirecting energy toward areas of traditional strength—asset management and institutional services—where scale and expertise can still deliver outsized results in a challenging environment.
Sources reveal that Goldman Sachs held acquisition talks with Northern Trust, a 25billionbankingpowerhousespecializingincustodialandasset−servicingbusinesses.Ifcompleted,thisdealcouldboostGoldman’sclientassetsbyasmuchas4025 billion banking powerhouse specializing in custodial and asset-servicing businesses. If completed, this deal could boost Goldman’s client assets by as much as 40%, adding over 25billionbankingpowerhousespecializingincustodialandasset−servicingbusinesses.Ifcompleted,thisdealcouldboostGoldman’sclientassetsbyasmuchas401.3 trillion to its existing $3.3 trillion asset management portfolio. Such a move would also grant Goldman a robust presence in the “back-office” functions that underpin much of Wall Street’s transaction infrastructure—an area long dominated by industry stalwarts like State Street and Bank of New York Mellon.
Solomon didn’t stop there. Earlier this year, he nearly clinched a 6billiondealforCliffwater,aprivate−marketsspecialistmanagingover6 billion deal for Cliffwater, a private-markets specialist managing over 6billiondealforCliffwater,aprivate−marketsspecialistmanagingover120 billion. According to insiders, talks fizzled over pricing, with Cliffwater later selling a stake to major global investors. Discussions in the growing world of low-fee ETFs—for years a laggard business for Goldman—also underscore Solomon’s appetite for expansion and his willingness to explore new revenue streams aligned with evolving investor preferences.
M&A Momentum: Favorable Conditions in 2025
What’s driving this new acquisition focus? Two factors stand out: a record-high Goldman Sachs stock price (up nearly 50% in the last year) and a friendlier regulatory climate, with the Trump administration signaling greater openness to large-scale deals. Recent capital requirement reviews found major U.S. banks holding more than enough capital, removing a key stumbling block for big-ticket M&A.
Goldman’s leadership, including President John Waldron, is now freed from many of the shackles that once restrained the firm’s ambition. Internal morale is reportedly higher, and there’s momentum to close the gap with global asset management leaders like Blackstone, KKR, and Fidelity—particularly as Goldman’s growth in real estate investing and ETFs lags behind industry peers.
As Solomon contemplates his next major acquisition, he faces the lessons of history: while Goldman Sachs has an unrivaled reputation for advising on deals, its own track record as a buyer is mixed at best. The iconic 2000 purchase of Spear, Leeds & Kellogg stands out more as a cautionary tale, while the acquisition of wealth manager Ayco was profitable but not transformative.
iXDeep: Market Impact on Forex and Crypto
From an iXbroker perspective, the implications of potential Goldman Sachs dealmaking in 2025 extend far beyond the firm’s own balance sheet.
Forex Markets
A successful acquisition of a firm like Northern Trust could bolster confidence in the U.S. financial sector, potentially attracting foreign capital inflows and lending powerful support to the dollar. However, uncertainty surrounding regulatory approval or the strategic cultural integration of large acquisitions may inject near-term volatility into FX markets, with USD pairs particularly sensitive. A failed or controversial deal could trigger risk-off sentiment, prompting a move into traditional safe havens like the JPY or CHF.
Crypto Markets
For crypto, major Wall Street consolidation typically generates two countervailing forces. On one hand, large, regulated institutions like Goldman expanding into alternative assets (such as private credit or ETFs) can ease regulatory concerns and foster institutional adoption—bullish for Bitcoin and Ethereum. On the other hand, if markets interpret aggressive expansion by banks as a threat to the decentralization narrative, we could see increased volatility and potential short-term drawdowns as speculative capital seeks clarity.
Ultimately, these bold M&A maneuvers signal that U.S. financial giants are adapting rapidly, and both Forex and crypto traders should be prepared for fluctuations triggered by deal rumors, regulatory updates, and shifts in investor sentiment.
The Path Forward
With rival banks like JPMorgan Chase and Morgan Stanley having recently pulled off transformative acquisitions, the pressure is on for Solomon and Goldman Sachs to deliver. The timing couldn’t be more strategic: valuations are robust, regulatory constraints have loosened, and the appetite for asset management scale is at a fever pitch. As always, the outcome will hinge on execution—and whether Goldman can integrate outside talent without falling victim to the historic culture clashes that have undone past deals.
