Goldman & # 39; s Incoming C.E.O Appoints Two Former Bankers As Key Members

David M. Solomon, the new chief executive of Goldman Sachs, has selected two veterans from the firm's investment banking division to help lead the company.

At a board meeting on Thursday, Goldman's directors approved the selection of John Waldron, co-head of investment banking, as director of operations, and Stephen Scherr, who heads the bank a note. internal reviewed by the New York Times.

Mr. Waldron will take up his new position on October 1, the same day that Mr. Solomon becomes Executive Director. Mr. Scherr will assume the position of CFO on November 5, concurrent with the filing of Goldman's quarterly results.

The promotions of Mr. Waldron and Mr. Scherr reinforce the dominance of the leaders of Goldman's investment banking division. Mr. Solomon and Mr. Waldron, friends who both worked for Bear Stearns before joining Goldman, led his investment bank together for two years before Mr. Solomon was named president of the company. Mr. Scherr was Chief Investment Officer of the Investment Bank for six years before being named Goldman's Strategy Director and then Head of the Consumer Bank.

Mr. Waldron and Mr. Scherr will help "develop and execute our strategy, grow our customer franchise, ensure sound risk and capital management and preserve our unique culture," said Solomon and Lloyd's internal memo C. Blankfein, the director of the bank. outgoing CEO.

The change comes as Goldman's traditionally strong business is in decline. R. Martin Chavez, current CFO of Goldman, will return to the Securities Division to help manage it. He will also become vice-president of the firm.

The Times this week reported that Mr. Solomon downplayed the ethical issues raised by James C. Katzman, Goldman's partner who oversaw West Coast transactions in the company's investment bank. Katzman resigned after feeling that his concerns, which he had reported to a whistleblower hotline managed by an outside law firm, had not been taken seriously.