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Goldman Sachs, an iconic Wall Street institution, named Tuesday the new CEO and DJ David Solomon as the investment bank seeks to conquer households, ten years after the financial crisis.
The new CEO Goldman Sachs, David Solomon, will take office on 1 October. Its predecessor, Lloyd Blankfein, will leave the company at the end of the year, detailed the bank, which is currently in the middle of an offensive towards the general public to compensate for the decline of brokerage activities that made its reputation for nearly 150 years. 19659003] »READ ALSO – 2018 World Cup: Goldman Sachs' completely failed predictions
" I am honored and moved to have the opportunity to lead Goldman Sachs and I appreciate the confidence that Lloyd [Blankfein] and the board of directors placed in me "
David Solomon
The new 56-year-old boss will first adopt the chief executive's costume, with the cap of the board of directors remaining on Lloyd Blankfein's head, 63 years old, until the end of the year. It will then be recovered by David Solomon. "I am honored and thrilled to have the opportunity to lead Goldman Sachs and I appreciate the trust that Lloyd (Blankfein) and the Board have placed in me," responded David Solomon, who becomes the tenth boss in the story of Goldman Sachs. He was promoted to number 2 in March after an internal power struggle of more than 15 months, with a number of starters including his most serious rival, Harvey Schwartz, a former trader.
Robot Traders
"Today I do not want to leave Goldman Sachs (…) but it's the right time, "writes an internal document, obtained by AFP, Lloyd Blankfein employees of the firm. He is one of the last two CEOs of a major US bank that was in charge during the 2008 financial crisis. The other is Jamie Dimon, the CEO of JPMorgan Chase, the first US bank in terms of badets. [19659003] »READ ALSO – Financial crisis: Goldman Sachs asks for" forgiveness "
In November 2009, Lloyd Blankfein came under fire when he compared his work to that of God:" I'm just a banker doing the job of God, "he said in the middle of the financial crisis, caused by complex financial products, designed by traders, backed by toxic real estate loans that had been granted to fragile American households. Goldman Sachs agreed in 2010 to pay $ 550 million to the US Stock Exchange constable, the SEC, to sue Abacus, a type of "collateralized debt obligation" (CDO), which is to say badet-backed badets that were at the heart of the crisis. The departure of Lloyd Blankfein coincides with the loss of influence of traders on Wall Street due to the explosion of technology in finance and the success of bankers advising companies in their transactions.
Robots, who can now badyze data, develop investment strategies, make trade-offs and place orders to buy or sell stocks thanks to advances in artificial intelligence, have made their entry into the trading rooms. In the medium term, this change is expected to lead to the loss of approximately 30% of jobs in the banking sector by 2025, Citigroup Bank calculates.
Promoting Women
In the face of declining brokerage and emergence "Fintech" (start-ups providing banking services such as the venmo application allowing instant transfers at no cost), David Solomon is among those who have pushed for a diversification of Goldman Sachs towards the traditional activities (financing of the economy via credits granted to households and businesses and savings …).
The institution recently launched Marcus, an online platform for lending to households and SMEs and is preparing to market its first credit card in partnership with Apple. It is also opening offices in mid-sized cities in the United States and wants to help businesses manage their cash flow. "Goldman Sachs is becoming more like a commercial bank and is now seen as such by regulators," says William Cohan, a former investment banker who has worked for Bear Stearns as David Solomon. This transformation breaks with the DNA of Goldman Sachs, which emerged from the 1960s as the firm of traders by creating a division to speculate on derivatives, commodities, currencies, bonds and bonds Treasury, among others.
David Solomon, "DJ D-Sol, her stage name, has already begun pushing for a culture shift, including asking to hire and promote more women in a male dominated environment. Meanwhile, Goldman Sachs announced Tuesday a big quarterly profit of 2.35 billion dollars, up 44%.
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