Businessweek

and derivatives market-making capabilities to address clients’ specific investment needs. Management and Other Fees: The majority of revenues in management and other fees consist of asset-based fees on client assets. Other fees the company receives include financial counseling fees generated through its wealth advisory services and fees related to the administration of real estate assets. Assets under supervision include assets under management and other client assets. Assets under management include client assets where the company earns a fee for managing assets on a discretionary basis. This includes net assets in its mutual funds, hedge funds, credit funds and private equity funds (including real estate funds), and separately managed accounts for institutional and individual investors. Other client assets include client assets invested with third-party managers, private bank deposits and assets related to advisory relationships where the company earns a fee for advisory and other services. Incentive Fees: In certain circumstances, the company is entitled to receive incentive fees based on a percentage of a fund’s or a separately managed account’s return, or when the return exceeds a specified benchmark or other performance targets. Transaction Revenues: The company receives commissions and net spreads for facilitating transactional activity in high-net-worth client accounts. In addition, the company earns net interest income primarily associated with client deposits and margin lending activity undertaken by such clients. Regulation The company is a bank holding company under the Bank Holding Company Act of 1956 (BHC Act) and a financial holding company under amendments to the BHC Act effected by the U.S. Gramm-Leach-Bliley Act of 1999 (GLB Act). The company is subject to supervision and examination by the Board of Governors of the Federal Reserve System (Federal Reserve Board). The company’s subsidiary, Goldman Sachs Bank USA (GS Bank USA), is supervised and regulated by the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), the New York State Department of Financial Services and the Consumer Financial Protection Bureau (CFPB). In addition, the company has two limited purpose trust company subsidiaries, The Goldman Sachs Trust Company, N.A., a national banking association that is limited to fiduciary activities, is regulated by the Office of the Comptroller of the Currency and is a member bank of the Federal Reserve System; and The Goldman Sachs Trust Company of Delaware, a Delaware limited purpose trust company, is regulated by the Office of the Delaware State Bank Commissioner. The company’s subsidiary, GS Bank USA, an FDIC-insured, New York State-chartered bank and a member of the Federal Reserve System, is supervised and regulated by the Federal Reserve Board, the FDIC, the New York State Department of Financial Services and the CFPB, and is subject to minimum capital requirements that are calculated in a manner similar to those applicable to bank holding companies. Transactions between GS Bank USA or its subsidiaries, on the one hand, and the company or its other subsidiaries and affiliates, on the other hand, are regulated by the Federal Reserve Board under the Federal Reserve Act. The company’s insurance subsidiaries are regulated by the Bermuda Monetary Authority, and Rothesay Life Limited (Rothesay Life), its U.K. insurance subsidiary, is regulated by the U.K.’s Financial Services Authority. Goldman Sachs Japan Co., Ltd. (GSJCL), the company’s regulated Japanese broker-dealer, is subject to the capital requirements imposed by Japan’s Financial Services Agency. GSJCL is also regulated by the Tokyo Stock Exchange, the Osaka Securities Exchange, the Tokyo Financial Exchange, the Japan Securities Dealers Association, the Tokyo Commodity Exchange, Securities and Exchange Surveillance Commission, Bank of Japan, the Ministry of Finance and the Ministry of Economy, Trade and Industry. Significant Events In April 2013, AmREIT, Inc. announced that it has completed its entry into a joint venture (the Venture) with The Goldman Sachs Group, Inc., in which the Ventur