David Solomon becomes favourite to be next Goldman Sachs boss

  • David Solomon becomes favourite to be next Goldman Sachs boss

David Solomon becomes favourite to be next Goldman Sachs boss

Harvey Schwartz, co-president and co-chief operating officer of Goldman Sachs Group, is retiring from the Wall Street bank next month.

Harvey Schwartz, one of the frontrunners to replace Lloyd Blankfein at the helm of Goldman Sachs, has quit just days after it emerged the chief executive was planning to stand down.

Schwartz and Solomon jointly hold the positions of co-chief operating officer and president.

"I look forward to continuing to work closely with David in building our franchise...", Blankfein, 63, said in the note.

Last week, The Wall Street Journal reported that Blankfein would most likely retire, on his own terms, ahead of Goldman Sachs' 150th anniversary in 2019, or early that year.

Goldman Sachs has been gaining ground since the open of trade Monday and is now higher by 3.89 at $274.66. Blankfein later tweeted the announcement wasn't his.

Schwartz had been on a trajectory toward the CEO's suite, with twenty years of experience in both trading and investment banking, as well as years as the company's chief financial officer.

Harvey Schwartz's resignation comes after 20 years with Goldman Sachs. He is not expected to return to Goldman.

Setting up an investment banker to lead the firm would better align leadership with the bank's focus and highlights the waning influence of the trading business, Wells Fargo analyst Mike Mayo said.

The bank typically maps out its succession planning by naming two or three candidates to top roles. The stock has broken out past resistance and has set a new high for the year.

Solomon rose through the financing business after joining as a partner from Bear Stearns Cos. and ran the firm's top-ranked investment-banking business for a decade. Solomon ended up taking a demotion to join Goldman Sachs, a bet that now seems to have paid off in spades.