New York Post

Goldman transition is a Blankfein slate

- By KEVIN DUGAN kdugan@nypost.com

Lloyd Blankfein — Master of the Universe, or Lame Duck?

Wall Street has been left with as many questions as answers this week after Goldman Sachs went through an unusually public succession process — with some analysts anxious for more informatio­n about when the current chief executive will step down.

Earlier this week, the banking behemoth announced that David Solomon would be the company’s sole president and chief operating officer, ending a year-long succession battle with colleague Harvey Schwartz.

The move effectivel­y designated Solomon the heir apparent.

The process was unusual for Wall Street in general — and Goldman in particular. Goldman has a history of quickly elevating new leaders — as when Blankfein succeeded Henry Paulson in 2006.

“Usually the top guy resigns and the second guy comes in,” Dick Bove, an analyst and Blankfein critic, told The Post. “Nobody wants to publicly designate his successor. It’s a killer to do that.”

Blankfein is considerin­g stepping down by the end of the year at the earliest — but could stay on long into 2019, a source told The Post.

While Blankfein, 63, has joked that he would die at his desk, some believe he wants to ride out what’s expected to be a good year for the bank — effectivel­y outlasting the last handful of awful-tomiddling quarterly reports.

Blankfein is also giving Solomon more time to put together a turnaround plan.

“I think this would be a better year for Goldman,” Marty Mosby, analyst at Vining Sparks, told The Post.

Still, now that Solomon is next in line, the bank’s rank and file will be gravitatin­g toward the incoming King of Wall Street, Bove said.

“One of the reasons that corporatio­ns like JPMorgan don’t want to designate a No. 2 is that you emasculate the No. 1 guy,” Bove said.

Newspapers in English

Newspapers from United States