LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Next Goldman CEO to take on old problems, new businesses

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Tue, Jul 17, 2018
11:00 pm
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

Goldman Sachs Group Inc named David Solomon as its next chief executive officer on Tuesday, ushering in a new era for the Wall Street bank as it expands into different businesses and revamps familiar ones.

Solomon`s promotion from his current role as president and chief operating officer comes months after the 56-year-old investment banker was first reported as next in line to succeed longtime CEO Lloyd Blankfein. His first day in charge is October 1.

"David is the right person to lead Goldman Sachs," Blankfein said in a statement. "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. Through the talent of our people and the quality of our client franchise, Goldman Sachs is poised to realize the next stage of growth."

The change comes at a turning point for Goldman Sachs, which is trying to generate another $5 billion in annual revenue by growing its fledgling consumer bank, squeezing more from businesses like asset management and changing the way it approaches trading.

Management detailed parts of that plan last September after years of insisting that Goldman`s once-lucrative trading business would come roaring back to life when markets picked up. Instead, since 2009, Goldman`s annual trading revenue has declined by $20.8 billion.

Unlike Blankfein, who rose through the trading ranks to become CEO, Solomon made a name for himself advising corporations on financing and strategy in Goldman`s investment bank. He joined as a partner in 1999 after working in commercial paper, junk bonds and leveraged finance at firms including Salomon Brothers, Drexel Burnham Lambert and Bear Stearns.

Alan Schwartz, executive chairman at Guggenheim Partners who worked with Solomon at Bear in the 1990s, said he showed natural leadership qualities early in his career.

"David is a very good big picture thinker while at the same time staying on top of all the details," Schwartz said. "Finding both in one individual is unusual."

Several Goldman bankers who spoke to Reuters said employees in the business have been celebrating Solomon`s triumph in a long succession race. (http://reut.rs/kPAtnJ)

Though he was considered a "dark horse" candidate years ago, Solomon managed to outlast a number of rivals, including several from the trading business. Among them are former longtime chief operating officer Gary Cohn, who left Goldman last year for a role in President Donald Trump`s White House that he has since departed, and former co-chief operating officer Harvey Schwartz, who left the bank in April after Solomon was chosen as Blankfein`s successor.

Through most of its history, Goldman has alternated between traders and bankers as CEOs. There is natural tension between the two sides of the house at most Wall Street banks, especially after the trading losses and scandals that stemmed from the 2007-2009 financial crisis.

Nonetheless, Solomon will have to get traders and bankers to cooperate on the revenue growth plan, which depends partly on the idea that customers should rely on Goldman Sachs not just for merger advice or stock offerings, but for all their borrowing, trading and money management needs.

He may also pursue acquisitions to bolster Goldman`s consumer banking operation, or expand into areas like corporate cash management.

News of Solomon`s appointment came on the same day Goldman reported second-quarter results, which showed a 44 percent profit rise but ongoing struggles in trading.

Beyond the business turnaround, Solomon`s legacy will depend on whether he can fill Blankfein`s shoes.

The 63-year-old CEO, who took the helm in 2006, oversaw Goldman Sachs through its most difficult period in modern history, involving a taxpayer bailout during the financial crisis, protests over Goldman`s role in the crisis and massive regulatory changes that curtailed some of its most lucrative businesses.

"We`ve had tough days (or a crisis or two)," he joked in an internal memo viewed by Reuters announcing the succession plan.

Blankfein resisted pressure to leave during some of those moments, saying there was no better job to have. But in more recent years, he has joked that he does not want to die on the job like one of his predecessors, Gus Levy, who suffered a fatal stroke at a meeting.

He is stepping away at a time when Goldman Sachs is on steadier footing, but needs fresh leadership to reinvent itself, said Marty Mosby, a bank analyst at Vining Sparks.

"That is what David Solomon`s challenge is," said Mosby. "That is why they`re changing the management team."

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

Yes Bank Share price: Target price Rs 14, Anand Rathi maintains Sell rating | Earning, valuation and key risks

GPSC Prelims 2021: Final answer key released on gpsc.gujarat.gov.in

Punjab Budget is populist, woos farmers, government employees

SBI Pension Loan: Former Central and state government employees, defence pensioners or family pensioners, this scheme tailor made for you; check interest rate

Easy Trip Planners IPO: Issue Details highlighted by ICICI Securities

NEET 2021 exam: Students don't miss to check the latest update on exam dates, eligibility criteria, registration process and all you need to know before appearing in the exam!

Oppo F19 Pro+ 5G and Oppo F19 Pro India launch today: Check timings, how to watch event LIVE, expected price and more

Maharashtra budget: Tax increased on liquor

Asus ROG Phone 5 set to launch in India on March 10: Here's all you need to know

DDA draw LIVE results 2021 - Date, time, streaming, webcast link to check online allotment of flats

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved