“John and Stephen will work closely with me to develop and execute our strategy, grow our client franchise, ensure strong risk and capital management and safeguard our unique culture,” Solomon said in the announcement. “I have worked with John and Stephen for nearly two decades and am confident that they bring the right complement of skills to help lead the firm through their respective roles.”
The management turnover represents the rise of veteran investment bankers over traders at Goldman Sachs. Blankfein had been a precious metal salesman and rose through the ranks of the trading division, which has dominated the firm for much of its history as a publicly traded company.
Solomon, Waldron and Scherr all have deep roots in the investment banking side. Advisory and capital markets desks have proved to be more dependable sources of revenue compared with trading, which has never recovered from a 2009-2010 high water mark as regulation and calm markets stifled activity.
While Waldron’s promotion was expected, it was originally thought that he would have a co-president, perhaps someone who hailed from the firm’s trading division.