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Goldman Sachs' Schwartz retires, paves way for Solomon as next CEO

13 March 2018
Goldman Sachs' Schwartz retires, paves way for Solomon as next CEO

Goldman announced Monday that one of the firm's two co-COO's, Harvey Schwartz, will retire, leaving David Solomon as the only COO and president at Goldman for the time being. "I want to thank Harvey for all he's done for the firm", Blankfein said in a statement.

The CEO and chairman, who has run the firm since 2006, always indicated that he would stay for at least a couple of years after the December 2016 reshuffle.

The question of Blankfein's successor has been a topic of debate across the financial industry since Friday, when the Wall Street Journal reported that the CEO would step down as early as this year.

The announcement also came less than a week after Blankfein's prior deputy, former Goldman Sachs president Gary Cohn, quit his post as President Trump's top economic adviser. 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 U.S. investment bank.

Long seen as the undisputed king of Wall Street, Goldman Sachs has come under greater scrutiny over the a year ago or two as returns of its once-formidable trading divisions have languished and as rival Morgan Stanley has won plaudits for its asset management services.

Mayo predicted that the CEO transition would happen next year, during Goldman Sachs' 150th anniversary as a firm, when he said the firm should be better positioned for Blankfein to exit on top.

He joined Goldman in 1999, and oversaw investment banking during and after the financial crisis.

"I look forward to continuing to work closely with David in building our franchise around the world", Mr. Blankfein said in the statement. He later took over the bank's investment banking division, where profits doubled and revenue rose 70% during his tenure.

Shares of Goldman Sachs finished up 1.0 percent to $273.38. Solomon also led a study about improving the quality of life for Goldman's junior bankers, resulting in new limits on weekend working hours, the report said.