Goldman Sachs CEO succession clearer with Schwartz retiring


David Solomon taking over as the next CEO of the company is likely to happen due to the upcoming resignation of Harvey Schwartz.

The announcement that one of Goldman Sachs's two COOs would resign brought some clarity to the question of the bank's future leadership, after the Wall Street Journal reported that the bank's current CEO, Lloyd Blankfein, would leave by the end of the year.

Goldman Sachs (GS) said David Solomon will become sole president of the company, elevating him over Harvey Schwartz as the eventual successor to Chief Executive Officer Lloyd Blankfein.

The Wall Street firm revealed on Monday that co-president Harvey Schwartz, a potential successor to Blankfein, will retire next month after 20 years.

"Harvey's work ethic, command of complexity, and client focus have defined his career at the firm". Solomon, 56, a former investment banker, has been boosted by the strength in that business, where Goldman Sachs posted record revenue in 2017.

However, Goldman Sachs has not commented on that report and its statement on Monday made no mention of Blankfein's plans. 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 United States investment bank. What's more, Blankfein and JPMorgan's Jamie Dimon are the only two remaining big bank CEOs from the 2008 financial crisis. The firm's fixed-income trading business, which produced Schwartz, is coming off its worst year in more than a decade.

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By contrast, Solomon has an investment banking background.

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

Outside of the office, he serves on the board of The Robin Hood Foundation, an organization dedicated to fighting poverty.

Solomon graduated from Hamilton College with a bachelor's degree in political science.

Julia La Roche is a finance reporter at Yahoo Finance.