Published: Mon, March 12, 2018
Business | By Max Garcia

Goldman CEO Blankfein said to be preparing to step down

Goldman CEO Blankfein said to be preparing to step down

Schwartz, 52, spent 20 years at Goldman Sachs, holding many roles, including co-heading the securities and investment banking divisions and serving as the chief financial officer. Solomon, 56, a former investment banker, has been boosted by the strength in that business, where Goldman Sachs posted record revenue in 2017.

Goldman made no mention of Blankfein's future plans in its announcement.

If Solomon does inherit the CEO job from Blankfein, he may have his work cut out for him.

The unexpected announcement that Schwartz will retire eliminates a presumptive CEO candidate with a strong trading background and comes as Goldman Sachs has been trying to reinvent itself after market trends and regulations sapped profits from its once-lucrative trading business. Schwartz and Solomon were named to the co-COO roles after Gary Cohn left Goldman to become US President Donald Trump's chief economic adviser. Members of the management committee were stunned, according to people familiar with the matter. 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 USA investment bank. The firm's fixed-income trading business, which produced Schwartz, is coming off its worst year in more than a decade.

Goldman Sachs said Monday that Harvey Schwartz, its co-chief operating officer, will retire next month, clearing the way for David Solomon to eventually become the next chief executive of the Wall Street firm. Solomon ended up taking a demotion to join Goldman Sachs, a bet that now seems to have paid off in spades. He moonlights as a DJ, has partied with the likes of Diddy, and once gave life-changing career advice to the Philadelphia 76ers guard J.J. Redick. "I want to thank Harvey for all he's done for the firm".

He also had a less-than-typical career path - he skipped the Ivy League and studied political science at Hamilton College in upstate NY.

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