He told Solomon that he was running out of patience and offered to return to the firm in an advisory role, according to the New York Times.
Blankfein also took a swipe at his successor to a handful of partners at a company gathering in Miami earlier this year, The Wall Street Journal reported in June.In the latest quarter, the company reported a 60% decline in profits year over year, in part from shutting down a consumer bank that lost billions, which was bought by Blankfein. Goldman has also faced government scrutiny for its involvement in the Silicon Valley Bank failure.The frustration has caused many star employees to flee.
That means the 61-year-old CEO will be difficult to replace given his bench of possible successors has dwindled so dramatically. Also this week, chief of staff for nearly three decades John Rogers said he is relinquishing his role. Rogers will still be involved in other projects and hold onto his board seat, according to a memo.“The guy is up against the wall because he pissed off everyone at the company,” Dick Bove, a veteran banking analyst, told The Times. “Solomon does not have a personality which gains the loyalty and respect of his subordinates.”“He’s turned Goldman Sachs into Bear Stearns.
Others bank-watchers are more optimistic. Even though the stock has dropped over the last few months, it’s climbed dramatically — roughly 50% — since Solomon took the reins from Blankfein in 2018. “The dynamics at Goldman — with all the partners and ex-partners — are that there is just a lot of second-guessing and jealousy,” Ted Virtue, chief executive of the private equity firm MidOcean Partners and a friend of Solomon’s, told The Times.
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