[ad_1]
Investment banks of Goldman Sachs Group are completing the takeover of their own company.
Three of the most important roles will now be played by executives who have crossed the threshold of the operation, returning to the helm of a company that has for years been Wall Street's main commercial center. The reversal, which began as a result of the financial crisis, ends with a change in the guard at the top.
The new chief executive, David Solomon, named John Waldron on Thursday as president and chief operating officer of the company, the bank's second-most powerful position. At the same time, Solomon abandoned Goldman Sachs' long-cherished practice of letting the best performers divide these important roles. Another leader on the rise, Consumer Banking Chief Stephen Scherr, was recruited to become chief financial officer.
Waldron, which manages investment banks, will take office on Oct. 1, the New York-based company said in a statement. Scherr, who first climbed the ladder of the same unit, will become chief financial officer in November.
And in a surprise move, Solomon dismissed Martin Chavez, the current CFO, to the commercial division, becoming the third co-leader of the bank's largest unit in terms of revenue. This leaves the opportunity for the star of Chavez to rise again in the company, if it can help to put the division on more solid bases, although many doubt that it can never regain its glory of before crisis.
Lloyd Blankfein, from fixed income trading, is expected to leave his position as CEO at the end of the month. His long-time deputy, veteran trader Gary Cohn, left Goldman (gs) at the end of 2016 for a noisier stay at the White House. And some of the firm's most experienced business leaders have also evolved.
Solomon had already tinkered with the trading group in the early summer, when he had brought another investment banker as co-manager alongside Ashok Varadhan, who was looking last year to retreat to find other opportunities. at the time.
"As the company prepares for the next phase of growth, I am pleased that Marty is contributing to the direction of our securities business as it continues to undergo a rapid transformation," Blankfein said in the statement. "I am confident that John and Stephen will represent a strong and effective management team under David's leadership."
Within the bank, Waldron was widely regarded as the favorite to become president, post often shared between two executives. He and Solomon are known to be close after climbing together in the investment banking division.
The relationship between Waldron, 49, and Solomon, 56, took root when they worked together in the world of Bear Stearns Cos. a private enclave in the middle of the hills of the Hudson Valley in New York.
Although Solomon is known as a demanding boss, Waldron has created a more flexible image, with a less demanding approach as head of Goldman's most profitable unit. Those who know him describe him as a stereotyped investment banker – a good golfer, an accomplished salesman and an effective advocate.
Patriarch Fox
In the wider world of mergers and acquisitions, Waldron is known for his connections with business leaders such as Rupert Murdoch. Recently, this meant advising the patriarch of the Fox Empire by selling a significant portion of his business to Walt Disney Co. as part of a $ 71 billion deal.
Scherr has led Goldman's consumer and business banking division since last year. Previously, he held the position of Strategy Director, leading a team that helps decide where the bank should continue its operations or acquisitions.
Some members of the firm had assumed that Waldron could become sole president, despite his traditions. Scherr was responsible for one of Goldman's greatest efforts in recent years, extending to traditional banking, which is a departure from the strength of the bank. But relations between him and Solomon were tense at times, people with knowledge on the subject said. The new management structure preserves Scherr's weight just before routine operations throughout the company.
"We appreciate the changes," said Susan Katzke, an analyst at Credit Suisse Group AG. "They play on Goldman's forces and on the leaders' forces."
Source link
