Lloyd Blankfein is about to be in excessive demand.
Goldman Sachs introduced Tuesday that David Solomon, the corporate’s president, will take over for Blankfein as CEO beginning in October. Blankfein will step down as chairman on the finish of the yr.
The management change marks a giant shift on the Wall Avenue financial institution. It additionally frees up Blankfein, who has been one of the highly effective folks on Wall Avenue for a dozen years.
The 63-year-old is “a extremely gifted man, and effectively revered chief and threat supervisor,” and will discover work in each the private and non-private sector, in line with William Cohan, a monetary reporter and writer of the 2011 e-book “Cash and Energy: How Goldman Sachs Got here to Rule the World.”
“He is a tough employee,” Cohan stated. “He is additionally a man who needs to stay related.”
To this point, Blankfein has been cryptic about subsequent steps.
He jokingly informed the New York Instances Tuesday that he is “on the job market,” however will in all probability “take at the very least a few weeks off.”
“This is one factor I look ahead to: unrestrained tweeting,” Blankfein stated within the interview.
A spokesperson for Goldman Sachs stated Blankfein “has made no plans at this stage.”
Associated: Goldman Sachs names David Solomon as subsequent CEO
Blankfein may comply with his predecessors into authorities.
Hank Paulson, the CEO earlier than Blankfein, left in 2006 to affix the Bush administration as Treasury secretary. In that function, Paulson turned a family identify as he tried to steer the USA by way of the worldwide monetary disaster.
Jon Corzine, who led Goldman Sachs from 1994 to 1999, was elected as a Democratic senator for New Jersey in 2000. He served as governor of the state between 2006 and 2010.
And Gary Cohn, Blankfein’s former deputy at Goldman, served as President Donald Trump’s high financial adviser till March.
However Blankfein, who supported Hillary Clinton in 2016 and has been essential of the president, is unlikely to discover a dwelling within the Trump administration.
“The federal government would not appear that obtainable for me now,” Blankfein stated, smiling, on the Boston School Chief Executives Membership in March.
Blankfein’s first tweet, despatched in June 2017, slammed Trump’s choice to exit the Paris local weather accord.
“As we speak’s choice is a setback for the surroundings and for the U.S.’s management place on the planet,” he stated.
He additionally pushed again on Trump’s wavering response to a rally of white supremacists in Charlottesville final summer time. In June, he known as the administration’s separation of immigrant youngsters from their mother and father on the US border a “tragedy.”
Associated: Goldman Sachs’ subsequent CEO is a part-time digital dance DJ
It is doable that Blankfein will wind up on a Cupboard brief record down the highway, relying on who’s elected in 2020 or 2024, Cohan stated. And Washington is not the one possibility. Corzine stated in an interview with Bloomberg on Tuesday that he thought Blankfein would make “an excellent mayor.”
Final month, Blankfein joked concerning the job on the Financial Membership of New York.
“I’d be mayor of New York Metropolis,” he stated. “I do not know if I might run for mayor of New York Metropolis.”
Blankfein, one of many longest serving executives on Wall Avenue, may additionally wind up with one other plum job in finance, although Cohan stated he’d be shocked if Blankfein channeled his energies into working a hedge fund or one other firm at this level.
Blankfein began on Wall Avenue in Goldman’s commodities buying and selling division in 1982, and steadily started to rise by way of the corporate’s ranks.
He was named CEO of the financial institution in 2006, shortly earlier than the Nice Recession.
For a time, Blankfein was the poster youngster for Wall Avenue’s function within the meltdown.
He was compelled to testify earlier than Congress, and Goldman Sachs later paid billions in fines.
However Blankfein has labored onerous to rehabilitate the corporate’s picture in recent times, and leaves the corporate because the boss who stored Goldman intact by way of each the monetary disaster and the interval of heightened regulation that adopted.
The corporate reported a better-than-expected $2.three billion second quarter revenue on Tuesday on account of beneficial properties in its funding banking enterprise, although decrease income from Goldman’s buying and selling desk stays an ongoing challenge. The financial institution’s inventory is down nearly 10% this yr.
As Blankfein palms off these challenges to Solomon, he is indicated that he is maintaining his choices open for what’s to return.
“I do not know what I’d wish to do, however I do know I wish to do one thing,” Blankfein stated in Boston in March. “I am nonetheless trying.”
Blankfein was identified with lymphoma in 2015. He stated he was cancer-free a few yr later after chemotherapy remedies. On Tuesday, he stated he was in good well being.
“If anyone’s questioning, I am effective,” Blankfein stated at a quarterly assembly of the corporate’s managing administrators.
— CNNMoney’s Matt Egan contributed to this report.
CNNMoney (New York) First revealed July 18, 2018: eight:17 AM ET