The announcement was made on Tuesday, that “Lloyd Blankfein”- the former CEO will crown the DJ-ing banker “David Solomon” as the boss at Goldman Sachs Group Inc. On Oct 1, Solomon will start running Goldman. This bank sits at the core of many concentric circles of power and money, ahead of other firms.
Goldman Sachs embraced the status of a trading powerhouse at the time of Blankfein’s tenure, drawing the envy of the competitors. However, that turned after the global financial crisis, when the firm briskly became the Wall Street’s misdeeds poster child in front of the public.
Goldman Sachs names veteran investment banker David Solomon as new CEO, succeeding Lloyd Blankfein, who will step down Sept. 30 https://t.co/mKWOX6LuIX
— The Wall Street Journal (@WSJ) July 17, 2018
David’s promotion from his current position as president and CEO comes after the 56 years. This news came on the similar day the bank stated a 44% growth in 2nd quarter profits to $2.35bn (£1.8bn).
Blankfein said in a statement:
“David is the right person to lead Goldman Sachs”. “He has demonstrated a proven ability to build and grow businesses, […] of our client franchise; Goldman Sachs is poised to realize the next stage of growth.”
The Solomon’s Personality
David Solomon was brought up in Hartsdale, New York, and was a student at Hamilton College. After a period at Drexel Burnham Lambert Inc., he rose to eminence at Bear Stearns Cos., where he worked the junk-bond desk prior being enticed to Goldman Sachs.
Mr. Solomon is a yoga practitioner and has interest in electronic dance, music, and DJs identified under the name “D-Sol”. He is known to love parties and has snapped with musicians like Sean “Diddy” Combs. However, his social account shows that he feels happier behind the decks rather than on the dance floor. There are also some shots of performing events in Miami, Los Angeles, and the Bahamas.
Between now and then, Solomon also possesses a freer hand in performing critical leadership changes.
Significantly, Solomon has achieved some pro-cryptocurrency remarks, specifically while considering various figures in the mainstream finance.
Previous month, infamous investment veteran told Bloomberg that Goldman Sachs is examining trading cryptos beyond several digital coin derivatives, explaining:
“We are clearing some futures around bitcoin […] it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too.”
Watch out: Lloyd Blankfein announces the next CEO at Goldman Sachs:
In Goldman’s two-decade run, this is the second handover, where all are evaluating the winners and the losers. Solomon is taking over from Lloyd Blankfein, who has been working for twelve years in the post. Blankfein has driven the bank out of the financial crisis which was existential for Goldman Sachs.
In a note Blankfein said to the staff:
“Today, I don’t want to retire from Goldman Sachs, […] it feels like the right time”. “It’s always been hard for me to imagine leaving. When times are tougher, you can’t leave. And, when times are better, you don’t want to leave.”
Blankfein, 63, previously accepted that he’d have to hand over the top spot ahead of leaving. He also added that David would assist from more time in the president job.
Solomon will be the oldest new boss at the firm within 50 years. He is also the fourth CEO under Blankfein’s reign.
David Solomon joined as a partner at Goldman Sachs shortly after the firm went public in 1999. Since then he has achieved the ranks via its investment-banking division. For a decade, he was the operator in charge of the unit. He also pushed into debt ensuring a business that was in the record revenue the previous year. Additionally, he contributed almost 10 percent of the firm’s average.
Ken Moelis- a prominent dealmaker said:
“I have competed against David Solomon many times as a banker for over 30 years, most often unsuccessfully”. “He is smart, focused and innovative but, most important, his integrity is unmatched. David is a brilliant choice to succeed Lloyd as CEO.”
After the crisis, the firm has started depending on its investment banking group, rather than the trading franchise. Their trading division’s huge money-making factor reduces after the crisis below the weight of new rules and laws.
The Solomon’s key decisions will be to pick up the replacements for his existing role. Participants include
- John Waldron- co-head of investment banking,
- Stephen Scherr- leading the company’s consumer and commercial banking division
Some investors and analysts will keep an eye on the initiatives he devotes to assist the bank to accomplish its motive of recognizing $5 billion in new coming revenue chances by 2020.
David will likely be the initial person to lead a giant bank while exhibiting his identity as an electronic music disc jockey; he has resumed embracing his current responsibility.
Do you think Solomon is the right choice as a CEO at Goldman Sachs? What will come next according to you? Share your views in the comment section below.