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Goldman Sachs Group Inc. has appointed veteran investment banker, David Solomon, as its new Chief Executive. He would succeed Lloyd Blankfein who steps down after running the bank since 2006.
While Solomon will take over October 1, Blankfein will remain chairman of the board until the end of the year, when Mr. Solomon will take the title.
“David is the right person to lead Goldman Sachs,” Mr. Blankfein said in a statement, calling him a “terrific partner”. He praised his successor’s track record of developing new businesses and working to improve Goldman’s culture.
Mr. Blankfein, a longtime trader and lawyer who rose through the firm’s commodities business, guided Goldman through the financial crisis and the public scrutiny that followed it.
In a memo to employees on Tuesday, Blankfein said: “When I’ve been asked about succession in the past, it’s always been hard for me to imagine leaving. When times are tougher, you can’t leave. And, when times are better, you don’t want to leave.
“I look forward to watching him lead Goldman Sachs for years to come.
Mr. Solomon will be the third Goldman CEO since the company went public nearly two decades ago. The first, Henry M. Paulson Jr., went on to serve as U.S. Treasury Secretary under President George W. Bush.
The appointment was announced just as the bank announced its second-quarter earnings, which showed higher profit and revenues than last year. Goldman reported $2.6 billion in profits on $9.4 billion in revenue.