Goldman's President Likely To Take Over As CEO By 2018 End

Longtime CEO of Goldman Sachs (NYSE:GS) — Lloyd C. Blankfein — is likely to retire by the end of 2018, per an article by The New York Times. Aged 63, Blankfein has served Goldman Sachs since 2006 and has been successful in keeping the bank afloat in difficult times like the financial crisis. Over the recent months, he has been setting the ground for his exit.

Per the article, Blankfien is likely to be replaced by current president of the Goldman Sachs, David M. Solomon, who has already began shaking the senior management team. He was appointed as president in March 2018, which had initiated doubts of his succession as the CEO at the time.

So far in his term, Solomon has helped strengthen the company’s investment banking business by making it one of the leading advisors on corporate mergers and acquisitions. Also, lately, he has been focused on improving other potential divisions such as trading unit and consumer banking.

Blankfein is not the only person to be leaving the Wall Street giant this year. Goldman Sachs’s co-president, Harvey M. Schwartz, who was being considered as another potential candidate for running the company, announced plans to retire. Also, recently, co-heads of the trading unit announced their retirement plans.

Blankfein is likely to step down alongside these employees at an annual dinner in December. Citing people familiar with the matter, The New York Times noted that the expected time of transition might change.

Goldman Sachs’s well-diversified business, along with its solid investment banking operations, bolster its financial position. Further, the company’s focus on new growth opportunities through several strategic investments, including the digital consumer lending platform, will likely support its overall business growth.

Shares of Goldman have gained 9.7% over the past year, underperforming the industry’s rally of 33.6%.

Currently, Goldman sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Northern Trust Corporation (NASDAQ:NTRS) has witnessed an 5.2% upward estimate revision for current-year earnings in the last 60 days. Over the past six months, the company’s share price has been up 14.3%. It currently carries a Zacks Rank of 2 (Buy).

Comerica Incorporated’s (NYSE:CMA) 2018 earnings estimates has been revised 4.9% upward for the last 60 days. Additionally, the stock has jumped 24%, in six months’ time. It currently carries a Zacks Rank #2.

M&T Bank Corporation (NYSE:MTB) has witnessed upward estimate revision of 2.2% for the current-year earnings, over the last 60 days. Also, the company’s shares have risen 13.7% in the last six months. It carries a Zacks Rank of 2, at present.

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