Saturday, 15 December, 2018

Schwartz to retire from Goldman, boosts Solomon as next CEO

David Solomon Goldman Sachs Schwartz to retire from Goldman, boosts Solomon as next CEO
Nellie Chapman | 12 March, 2018, 18:06

The investment bank intends to replace Blankfein, 63, with one of its two co-presidents, David Solomon or Harvey Schwartz, the newspaper said Friday, citing people familiar with the matter that it didn't name.

"I look forward to continuing to work closely with David in building our franchise around the world, serving our expanding client base and delivering strong returns for our shareholders", Blankfein said in a statement.

Harvey Schwartz, one of the two men considered as the potential successor to Goldman Sachs CEO Lloyd Blankfein, is retiring next month, the bank announced Monday.

Blankfein himself made a cryptic reference to the news on Twitter, saying it's "WSJ's announcement...not mine".

"I feel like Huck Finn listening to his own eulogy", he added. Much of his work in recent years has been repairing the bank's image after Congressional hearings and media scrutiny focusing on the firm's role in the mortgage-bond bubble that helped bring about the financial crisis. Prior to taking on the role of President and co-COO in January 2017, Schwartz was GS' CFO for four years.

The end of Blankfein's tenure at the top of Goldman Sachs has always been a Wall Street talking point. He and Solomon were named co-COO in December 2016 in a setup that appeared to pit the two against each other to eventually lead what is viewed as the most powerful U.S. investment bank. He co-led the powerful investment banking division for a decade before he was promoted at the end of 2016. Before that, he served as Goldman's chief financial officer and quarterbacked the firm's transition to tougher regulation.

Solomon doesn't sound like your typical bank CEO. The firm's board discussed the idea of choosing a single COO under Blankfein at a meeting in February and settled on Solomon, according to a person with knowledge of their discussions.

Solomon has also tended to be more of a public face for Goldman Sachs than Schwartz has.