Thu, Jul 19, 2018 - Page 10 News List

Goldman names new CEO for growth plan

SHIFTING STRATEGY:The company said that it is expanding its endeavours aimed at Main Street customers and aims to enter the British deposit market later this year

AFP, NEW YORK

Goldman Sachs Group Inc on Tuesday named David Solomon as its new chief executive officer, implementing a much-telegraphed succession plan as it expands beyond its Wall Street roots to the broader consumer market.

The prestigious investment bank said Solomon, 56, would move from president to the top executive job on Oct. 1, succeeding longtime chief Lloyd Blankfein, 63.

Solomon would also take over the chairman’s seat at the end of the year when Blankfein steps down.

The appointment comes as Goldman expands efforts aimed at Main Street customers through online banking and other ventures such as credit cards, even as the bulk of revenues still come from businesses such as merger and acquisition advising.

Deposits in this newer business grew to more than US$23 billion at the end of the second quarter, chief financial officer Martin Chavez said on a conference call on Tuesday.

Chavez also announced plans to enter the British deposit market later this year, the first overseas move for the division.

Part of the reason for the shift — which brings Goldman into competition with JPMorgan Chase & Co, Bank of America Corp and others with retail branches — has been the tighter regulatory environment on banking in the wake of the 2008 financial crisis that has curtailed some riskier activities.

With Blankfein’s departure, Jamie Dimon at JPMorgan is the last remaining chief executive officer still at a big Wall Street bank from that precrisis period.

The bank reported a 44 percent jump in second-quarter earnings to US$2.3 billion thanks largely to strong revenues in advising clients on mergers, initial public offerings and other transactions.

The firm’s growth plan rests in part on building businesses in areas where Goldman believes it has a technological edge, Chavez said.

Goldman seeks to understand “what is the consumer’s pain point and how can we solve it,” he said.

Goldman shares closed 0.2 percent lower at US$231.02 on Tuesday.

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