Goldman Names David Solomon Sole President, Next In Line To Replace Blankfein

So much for that Lloyd Blankfein tweet...

 

In an announcement that effectively confirms the Wall Street Journal story from last week, Goldman Sachs named David Solomon, currently a co-president of the investment bank, as next in line to replace CEO Lloyd Blankfein.

He will also take over sole responsibility as the bank's president. His former co-president and Goldman's CFO, Harvey Schwartz who last September unveiled the bank’s plan to boost revenue by $5 billion in three years, will retire.

Goldman

The WSJ reported on Friday that Goldman Sachs CEO Lloyd Blankfein was preparing to step down as Goldman Sachs chief executive as soon as the end of the year, ending his 12-year-plus run at the helm of the world's most influential investment bank, which, under his leadership, earned the affectionate sobriquet "the Vampire Squid".

Goldman shares initially kneejerked lower on the news, before turning higher, helping to carry the Dow higher.

Blankfein said during a television interview last year that he wanted to leave Goldman "stronger than it was when I found it," though he did initially appear hostile to the idea, as we pointed out above.

As Bloomberg notes, Solomon and Schwartz have been directly competing for a shot at the top job since being promoted to co-presidents in late 2016, after Gary Cohn left to join Donald Trump’s administration.

Solomon, 56, a former investment banker, has been boosted by the strength in that business, where Goldman Sachs posted record revenue in 2017. The firm’s fixed-income trading business, which produced Schwartz, is coming off its worst year in more than a decade.

Solomon is set to become the world's most important banker after rising through the financing business since joining as a partner from Bear Stearns and ran the firm’s top-ranked investment-banking business for a decade. He has also taken on a leading role in the firm’s diversity push and initiatives to improve working conditions for young bankers. The part-time disc jockey, who attended Hamilton College, is also a wine collector and an avid skier.