When Cohn, who had previously been seen as Blankfein's heir, chose to leave Goldman for the Trump administration, the firm named Schwartz and Solomon as his replacements in late 2016, setting up the recent race. He also gained a huge financial leg-up from Donald Trump's sweeping tax reform bill, because of his supplemental work at Goldman Sachs.
Solomon is credited with building up a high-yield debt business and ran the firm's investment banking division from 2006 to 2016. It leaves David Solomon as the sole president and chief operating officer and the firm favourite to succeed Blankfein. Chief Executive Officer Lloyd Blankfein plans to step down as soon as the end of this year, the Wall Street Journal reported. In recent years, he has played an important role in revamping the investment bank's junior-banker policies and helped lead Goldman's efforts to build the ultimate financial destination for the masses under its Marcus brand. After a stint at Bear Stearns, he joined Goldman as a partner in 1999, the year Goldman went public.
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. Last week, Cohn announced his resignation from the White House.
Schwartz's departure leaves Solomon - who has gained notoriety in recent years for moonlighting as a DJ at nightclubs in NY and Miami - as the apparent successor to Blankfein.
Solomon doesn't sound like your typical bank CEO. He serves on the board of The Robin Hood Foundation, a nonprofit for fighting poverty in New York City.More news: Amazon Alexa Available with Follow-Up Mode and New Innovations
More news: Amazon will soon stop selling Nest products as spat with Google deepens
More news: House intel panel concludes: No collusion with Russian Federation
He studied political science at Hamilton College, and now serves as a trustee.
The Goldman executive has performed regularly as a disc jockey in New York, Miami and the Bahamas, the Times said, citing posts on his now-private Instagram account. He has also taken on a leading role in the firm's diversity push and initiatives to improve working conditions for young bankers.
His rise to heir apparent prompts a host of questions for Goldman, including the big ones: when exactly will Blankfein make his handoff, and what will Solomon do then?