Goldman Sachs has announced the appointment of a new CEO, who will take over on October 1. The news comes on a day of glad tidings for the mega-bank, which announced a 44 percent earnings jump earlier in the day.Goldman Sachs,the American multinational investment bank, has named David Solomon as its new chief executive, due to replace outgoing boss Lloyd Blankfein in October.
Solomon, who replaces Blankfein after a 12-year tenure in the top job, is expected to drive and implement Goldman Sachs’ plans to expand on its Wall Street roots and move towards the broader consumer market.
The investment banking powerhouse intends to target ordinary consumers through online banking and other credit ventures. Part of the motivation for diversifying the business model is the tighter regulatory environment institutions such as Goldman Sachs have faced in the wake of the 2007/2008 financial crisis, necessary in order to curtail the kind of risky activity which led to the crisis.
The news of Solomon’s succession comes as Goldman announced a 44 percent jump in second-quarter earnings to $2.3 billion (€1.97 billlion) earlier on Tuesday, thanks largely to strong revenues in advising clients on mergers, initial public offerings and other transactions.
The wisdom of Solomon?
A former Bear Stearns banker who joined Goldman Sachs in 1999, Solomon worked for a decade as co-head of investment banking at the investment bank prior to being made co-president in December 2016.
“I am honored and humbled to have the opportunity to lead Goldman Sachs,” he said in a statement. “I am excited about the opportunities for growth and know how vital our culture of client service and teamwork is to our success.”
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Blankfein marked the news of his own departure by praising the bank’s performance during his tenure and by commending his replacement.
“Our firm has demonstrated great resiliency and strength over the last 12 years,” he said in a statement. “David is the right person to lead Goldman Sachs. He has demonstrated a proven ability to build and grow businesses, identified creative ways to enhance our culture and has put clients at the center of our strategy.”
aos/kd (AFP, Reuters)