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Goldman Closes 2011 Books on Partner Losses

January 13, 2012
In 2011, Goldman Sachs lost 50 of its partners, including 6 from 1999, the year the firm went public.  It's a number that kept growing each succeeding day in December.  In recent weeks, the firm bid farewell to a number of prominent partners, including Edward Eisler and David Heller, who both led Goldman’s influential securities division, as well as Edward Forst, head of asset management and member of Goldman’s management committee. With its 10 new partners, Goldman Sachs ended the year with 442 in the partnership pool.  There also are just 33 partners at the firm who were partners when Goldman went public in 1999, down six from this time last year. On Wall Street, becoming a partner has long been considered the pinnacle of success.  They're typically the best-paid employees at the firm, have a larger say in how the bank is run, and are among a small handful of employees who make it to this level.  The rise to partnership can take years and, as we saw this year, the "fall from grace" can be just a matter of months or days. And now, Goldman prepares to report its earnings for the year - which are sharply lower and which has forced the firm to cut staff and slash costs.  As Goldman shrinks, so has the partnership pool.  This partly based on Goldman's desire to keep the partner ranks at 1.8% of the firm's total workforce, according to people with knowledge of the process. That's not to say that some Goldman partners were not eager to leave - some were according to people who have spoken to them but are not authorized to speak on the record.  The current economic environment, along with the transition from the financial crisis and new regulations have eroded the earnings prowess of Goldman and others - both here and abroad.   while new regulations by continued economic worries here and abroad as well as new regulations that have eaten into profits. For further details, go to:   [Dealbook, 1/12/12]