For the fiscal year ended December 31 ... - Goldman Sachs

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSIONW ashington, 20549 Form 10-KANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 Commission File Number: 001-14965 The Goldman Sachs Group, Inc.(Exact name of registrant as specified in its charter)Delaware13-4019460(State or other jurisdiction ofincorporation or organization)( EmployerIdentification No.)200 West Street, New York, (Address of principal executive offices)(Zip Code)(212) 902-1000(Registrant s telephone number, including area code)Securities registered pursuant to Section 12(b) of the Act:Title of each classTradingSymbolExchangeon whichregisteredCommon stock, par value $.01 per shareGSNYSED epositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate Non-Cumulative Preferred Stock, Series AGS PrA NYSED epositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate Non-Cumulative Preferred Stock, Series CGS PrC NYSED epositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate Non-Cumulative Preferred Stock, Series D GS PrD NYSED epositary Shares, Each Representing 1/1,000th Interest in a Share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series J GS PrJNYSED epositary Shares, Each Representing 1/1,000th Interest in a Share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K GS PrK NYSED epositary Shares, Each Representing 1/1,000th Interest in a Share of Non-Cumulative Preferred Stock.

2 Series NGS PrN Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital IIGS/43PE NYSEF loating Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital IIIGS/43PF NYSEM edium-Term Notes, Series E, Callable Fixed Rate Notes due 2021 of GS Finance NYSEM edium-Term Notes, Series E, Index-Linked Notes due 2028 of GS Finance NYSE ArcaSecurities registered pursuant to Section 12(g) of the Act: NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes NoIndicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes NoIndicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934during thepreceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for thepast 90 days.

3 Yes NoIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405of RegulationS-T ( of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes NoIndicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerginggrowth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b-2of the Exchange accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any neworrevised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

4 Indicate by check mark whether the registrant has filed a report on and attestation to its management s assessment of the effectiveness of its internal control overfinancial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 7262(b)) by the registered public accounting firm that prepared or issued its auditreport. Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes NoAs of June 30, 2020, the aggregate market value of the common stock of the registrant held by non-affiliates of the registrant was approximately $ of February 5, 2021, there were 345,794,361 shares of the registrant s common stock incorporated by reference: Portions of The Goldman Sachs Group, Inc. s Proxy Statement for its 2021 Annual Meeting of Shareholders areincorporated by reference in the Annual Report on Form 10-K in response to Part III, Items 10, 11, 12, 13 and Goldman Sachs GROUP, INC.

5 AND SUBSIDIARIESANNUAL REPORT ON FORM 10-K FOR THE fiscal YEAR ended December 31, 2020 INDEXForm 10-K Item NumberPage I1 Item 1 Business1 Introduction1 OurBusinessSegments1 Investment Banking1 Global Markets2 Asset Management4 Consumer & Wealth Management4 Business Continuity and Information Security5 Human Capital Management5 Competition7 Regulation8 Information about our Executive Officers23 Available Information24 Cautionary Statement Pursuant to the Private SecuritiesLitigation Reform Act of 199524 Item 1 ARisk Factors26 Item 1 BUnresolved Staff Comments51 Item 2 Properties51 Item 3 Legal Proceedings52 Item 4 Mine Safety Disclosures52 PART II52 Item 5 Market for Registrant s Common Equity, Related StockholderMatters and Issuer Purchases of Equity Securities52 Page 7 Management s Discussion and Analysis of Financial Conditionand Results of Operations53 Introduction53 Executive Overview54 Business Environment55 Critical Accounting Policies55 Use of Estimates57 Recent Accounting Developments57 Results of Operations58 Balance Sheet and Funding Sources72 Equity Capital Management and Regulatory Capital75 Regulatory and Other Matters79 Off-Balance Sheet Arrangements and Contractual Obligations 83 Risk Management84 Overview and Structure of Risk Management84 Liquidity Risk Management90 Market Risk Management96 Credit Risk Management100 Operational Risk Management109 Model Risk Management111 Item 7 AQuantitative and Qualitative Disclosures About Market Risk 112 Goldman Sachs 2020 Form 10-KTHE Goldman Sachs GROUP, INC.

6 AND SUBSIDIARIESINDEXPage 8 Financial Statements and Supplementary Data112 Management s Report on internal Control over FinancialReporting112 Report of Independent Registered Public Accounting Firm 113 Consolidated Financial Statements116 Consolidated Statements of Earnings116 Consolidated Statements of Comprehensive Income116 Consolidated Balance Sheets117 Consolidated Statements of Changes in Shareholders Equity 118 Consolidated Statements of Cash Flows119 Notes to Consolidated Financial Statements120 Note 1. Description of Business120 Note 2. Basis of Presentation120 Note 3. Significant Accounting Policies121 Note 4. Fair Value Measurements126 Note 5. Trading Assets and Liabilities131 Note 6. Trading Cash Instruments132 Note 7. Derivatives and Hedging Activities134 Note 8. Investments144 Note 9. Loans149 Note 10. Fair Value Option159 Note 11. Collateralized Agreements and Financings163 Note 12. Other Assets167 Note 13. Deposits170 Note 14.

7 Unsecured Borrowings171 Note 15. Other Liabilities174 Note 16. Securitization Activities175 Note 17. Variable Interest Entities177 Note 18. Commitments, Contingencies and Guarantees180 Note 19. Shareholders Equity184 Note 20. Regulation and Capital Adequacy187 Note 21. Earnings Per Common Share195 Note 22. Transactions with Affiliated Funds195 Note 23. Interest Income and Interest Expense196 Note 24. Income Taxes196 Note 25. Business Segments199 Note 26. Credit Concentrations201 Note 27. Legal Proceedings202 Note 28. Employee Benefit Plans210 Note 29. Employee Incentive Plans210 Note 30. Parent Company212 Page Financial Information214 Common Stock Performance214 Statistical Disclosures214 Item 9 Changes in and Disagreements with Accountants on Accountingand Financial Disclosure219 Item 9 AControls and Procedures219 Item 9 BOther Information219 PART III219 Item 10 Directors, Executive Officers and Corporate Governance219 Item 11 Executive Compensation219 Item 12 Security Ownership of Certain Beneficial Owners andManagement and Related Stockholder Matters220 Item 13 Certain Relationships and Related Transactions, and DirectorIndependence220 Item 14 Principal Accountant Fees and Services220 PART IV220 Item 15 Exhibit and Financial Statement Schedules220 SIGNATURES226 Goldman Sachs 2020 Form 10-KTHE Goldman Sachs GROUP, INC.

8 AND SUBSIDIARIESPART IItem 1. BusinessIntroductionGoldman Sachs is a leading global financial institution thatdelivers a broad range of financial services acrossinvestment banking, securities, investment managementand consumer banking to a large and diversified client basethat includes corporations, financial institutions,governments and individuals. Our purpose is to advancesustainable economic growth and financial goal, reflected in our One Goldman Sachs initiative, isto deliver the full range of our services and expertise tosupport our clients in a more accessible, comprehensive andefficient manner, across businesses and product we use the terms Goldman Sachs , we, us and our, we mean The Goldman Sachs Group, Inc. (GroupInc. or parent company), a Delaware corporation, and itsconsolidated subsidiaries. When we use the term oursubsidiaries, we mean the consolidated subsidiaries ofGroup Inc. References to this Form 10-K are to ourAnnual Report on Form 10-K for the year endedDecember 31, 2020.

9 All references to 2020, 2019 and 2018refer to our years ended , or the dates, as the contextrequires, December 31, 2020, December 31, 2019 andDecember 31, 2018, Inc. is a bank holding company (BHC) and afinancial holding company (FHC) regulated by the Board ofGovernors of the Federal Reserve System (FRB). Our institution subsidiary, Goldman Sachs BankUSA (GS Bank USA), is a New York State-chartered Business SegmentsWe report our activities in four business segments:Investment Banking, Global Markets, Asset Management,and Consumer & Wealth Management. InvestmentBanking generates revenues from financial advisory,underwriting and corporate lending activities. GlobalMarkets consists of Fixed Income, Currency andCommodities (FICC) and Equities, and generates revenuesfrom intermediation and financing activities. AssetManagement generates revenues from management andother fees, incentive fees, equity investments, and lendingand debt investments.

10 Consumer & Wealth Managementconsists of Wealth management and Consumer banking,and generates revenues from management and other fees,incentive fees, private banking and lending, and consumer-oriented chart below presents our four business segments andtheir revenue BANKINGGLOBAL MARKETSM anagement and other feesIncentive feesEquity investmentsLending and debt investmentsWealth management- Management and other fees- Incentive fees- Private banking and lendingConsumer bankingASSET MANAGEMENTFICC- FICC intermediation- FICC financingEquities- Equities intermediation- Equities financingFinancial advisoryUnderwriting- Equity underwriting- Debt underwritingCorporate lendingCONSUMER & WEALTHMANAGEMENTI nvestment BankingInvestment Banking serves public and private sector clientsaround the world. We provide financial advisory services,help companies raise capital to strengthen and grow theirbusinesses and provide financing to corporate clients. Weseek to develop and maintain long-term relationships with adiverse global group of institutional clients, includingcorporations, governments, states and municipalities.