Goldman Sachs designs new bag

Goldman Sachs is betting it can get its money-making mojo back by pitching creative deals to big, complex clients, marking a return to its investment-banking roots as trading revenue slows.

The Wall Street institution is forming a group, known internally as the Innovation Lab, focused on generating compelling deal ideas for companies like Warren Buffett’s conglomerate, Berkshire Hathaway, or Japanbased SoftBank’s $93 billion investment fund, people familiar with the matter said.

The new “brain trust,” as one insider called it, is aimed at supercharging investment banking revenue as trading — for many years Goldman’s profit engine — has faltered amid regulations and market trends that hurt the bank more than they harmed its rivals.

From 2009 to 2016, Goldman’s annual trading revenue fell by more than $18 billion, or 32 percent, while investment banking revenue rose by $1.3 billion, or 26 percent. That trend has accelerated this year.

Analysts expect Goldman to reveal more trading pain when it reports third-quarter results on Tuesday, building on two consecutive quarters of declines.

A Goldman spokeswoman declined to comment on the new group, said to be led by deal makers Brian DeCenzo and James Morris.