People Moves

Goldman Sachs Prepares For New Leadership

Tom Burroughes Group Editor 12 March 2018

Goldman Sachs Prepares For New Leadership

The CEO of the renowned investment bank and wealth manager is expected to step down after more than a decade in the job.

The chief executive of Goldman Sachs, Lloyd Blankfein, is preparing to step down from the role he has held for 12 years, a period including the worst financial crisis since the 1930s that left hard-charging investment banks chastened, the Wall Street Journal reported.

The firm is expected to follow an announcement with a rapid transfer of power, choosing from one of its two co-presidents, Harvey Schwartz and David Solomon, the newspaper quoted unnamed sources as saying.

There is no certainty on the timing of moves if or when Blankfein, 63, decides to go. The WSJ said it is likely he will retire ahead of or early in Goldman’s 150th anniversary year in 2019, a date appealing to the history enthusiast. Blankfein has been at the investment banking and wealth management firm for 36 years, rising through the ranks after joining in 1982.

Blankfein’s reign has been tough at times; he was criticised by Washington legislators for the firm’s role in the sub-prime mortgage crisis. During his tenure, Goldman Sachs, often seen as the epitome of the hard-charging investment banking firm, paid $550 million to the government to settle claims it lied to investors about a bond that went sour.

Schwartz had run Goldman’s trading division before becoming chief financial officer. Solomon is an investment banker. Both men were promoted 15 months ago.

 

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