Goldman Sachs prepares to start a new stage without Lloyd Blankfein as CEO, when he is about to meet his 150th anniversary. The financial Group announced that Harvey Schwartz, one of two co-chairs, is retiring on 20 April. That leaves path free in career Successoria to David Solomon. The respite, of curdling, will allow to pass command to a new younger generation.
Solomon will be only President and COO of group. The withdrawal of Schwartz is known a few days after Wall Street Journal published an information forward that Blankfein would be preparing to depart after 12 years in front of influential investment bank. The executive, however, went to social networks to say it was a history of newspaper.
It's @WSJ's announcement... not mine. I feel like Huck Finn listening to his own eulogy.— Lloyd Blankfein (@lloydblankfein) March 9, 2018
Blankfein's exit is a recurring me on Wall Street since past financial crisis. In September of 2015 idea resumed, after it was diagnosed with lymphoma. The 63-year-old executive was subjected for a few months to a chemorapy treatment to fight cancer. Although he temporarily delegated some responsibilities, he continued to head bank.
Lloyd Blankfein had said so far that he was in no hurry to release reins. The succession plan, in any case, is a very definite end. The candidate to replace it would be in principle within bank itself. David Solomon and Harvey Schwartz were appointed co-chairs when Gary Cohn left company 14 months ago to stand in front of Economic Council advising White House.
The revelation of Wall Street Journal was known just three days after president Cohn left presidential team. "Now he's going to make a lot of money," joked Donald Trump at a public event, in which banker was present. There is not, in any case, an announcement from Goldman Sachs about when he could leave position of CEO and is not ruled out that he can continue as president.
Solomon is a veteran investment banker and has a very close relationship with bank's major customers. The pressure on Blankfein was growing over last few years because of bank's performance. Goldman Sachs closed last year with a 42% drop in profit, up to 4.29 billion dollars. It is explained by losses of 1.93 billion in fourth quarter by charges of tax reform, first in six years.
Despite this, Goldman Sachs ' stock market value appreciated 75% since executive took reins in June 2006. In case of JPMorgan Chase, he tripled. Jamie Dimon took reins of largest financial group for assets six months before him. The Dow Jones, where quoted, appreciated 127% in same period while S P 500 appreciated 120%.