Robert Mnuchin, Goldman Sachs Block Trading Innovator, Dies at 92

Robert Mnuchin, a notable figure in the finance world and a pioneer of block trading, passed away at the age of 92 on Friday at his home in Bridgewater, Connecticut. His stepdaughter, Lisa Hedley Wick, confirmed the news to the New York Times. Mnuchin’s legacy spans a remarkable 33-year career at Goldman Sachs, where he played a crucial role in developing innovative trading strategies.

Transforming Block Trading at Goldman Sachs

During his tenure, Mnuchin, alongside senior partner Gus Levy, transformed Goldman Sachs into a leader in block trading, facilitating the purchase and sale of large blocks of securities without disrupting the market. This practice became essential for institutional clients, including pension funds and mutual funds, which gained prominence in the 1960s. Mnuchin famously remarked about the challenges of executing large trades, stating that few firms possessed the necessary resources and courage.

In 1971, he executed the first transaction under a new New York Stock Exchange rule that mandated negotiated commissions for trades involving $500,000 or more. By the late 1970s, Mnuchin had earned the title of the “acknowledged dean of block traders,” as noted by the Wall Street Journal.

One of the most significant trades that underscored Goldman Sachs’ leadership occurred in January 1976. Charles D. Ellis, in his book The Partnership: The Making of Goldman Sachs, described how Mnuchin was contacted by the head of New York City’s pension fund. The fund required assistance in selling a $500 million portfolio of common stocks and replacing it with a new selection indexed to the market.

To maintain secrecy and prevent competitors from influencing the trades, the effort was codenamed Operation Eagle. Mnuchin revealed that small blocks of stock were sold daily, with larger transactions executed intermittently. By mid-March, Goldman Sachs had completed the largest stock purchase and sale in history, incurring only $2.9 million in transaction costs—less than one-third of one percent of the total value.

A Diverse Career Beyond Finance

After retiring from Goldman Sachs in 1990, Mnuchin transitioned into the art world, opening a gallery on New York’s Upper East Side. He showcased works by post-World War II masters such as Willem de Kooning and Jackson Pollock. In 2012, he made headlines by purchasing a Mark Rothko painting for $75 million at a Sotheby’s auction, further solidifying his reputation in the art community.

Born on September 5, 1933, in New York, Mnuchin was raised in Scarsdale, New York. He graduated from Yale University in 1955 and served in the Army before joining Goldman Sachs. His first marriage to Elaine Terner produced two sons, Steven and Alan, both of whom followed in his footsteps into finance. After a divorce, he married Adriana Abelow, with whom he had two daughters, Lisa and Valerie.

Steven Mnuchin later became the national finance chairman for Donald Trump during his presidential campaign and served as the U.S. Secretary of the Treasury. This connection provided an intriguing contrast, as Robert Mnuchin was a lifelong Democrat who had previously supported candidates including Hillary Clinton.

Throughout his life, Robert Mnuchin shaped the landscape of finance and art. His contributions to block trading and his role as an art dealer reflect a multifaceted career that left an indelible mark on both industries.