Published: Mon, March 12, 2018
Finance | By Loren Pratt

Goldman Sachs' Harvey Schwartz exits, clearing way for new CEO

Goldman Sachs' Harvey Schwartz exits, clearing way for new CEO

He was seen as a possible successor for Goldman's current chairman and CEO, Lloyd Blankfein.

"We saw the future as more of an investment-banking future than a securities or trading future and that favored Solomon", Charles Peabody, a Compass Point Research & Trading analyst, said in an interview with Bloomberg Television.

On Monday, Goldman Sachs announced that Harvey Schwartz, the firm's other president and co-COO, would retire next month and that Solomon would become the sole executive in those roles. He had been co-head of the bank's trading division before being promoted to chief financial officer in 2013, while Solomon, 56, had been a co-head of investment banking at Goldman since 2006 until becoming co-COO.

"Harvey's work ethic, command of complexity, and client focus have defined his career at the firm".

However, Goldman Sachs has not commented on that report and its statement on Monday made no mention of Blankfein's plans. With Schwartz retiring effective April 20, that would leave only Solomon.

Lately, there's been a great deal of speculation about who might take Blankfein's place.

The Wall Street Journal reported that the announcement signaled that Solomon would lead the bank after Blankfein's departure.

Blankfein himself made a cryptic reference to the news on Twitter, saying it's "WSJ's announcement...not mine".

Blankfein, 63, one of the longest-serving CEOs on Wall Street, has led what is viewed as the most powerful USA investment bank for almost 12 years. What's more, Blankfein and JPMorgan's Jamie Dimon are the only two remaining big bank CEOs from the 2008 financial crisis.

David Solomon is the the frontrunner at Goldman Sachs.

Prior to Goldman, Solomon spent almost nine years at Bear Stearns.

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