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00:00:00
>> Goldman Sachs, the second biggest investment bank in the world, on Tuesday named David Solomon as its next chief executive. And he's not your typical bank CEO, says Reuters correspondent Matt Scuffham.>> This is a big change for Goldman Sachs. This is a guy who has campaigned for less long working hours for young bankers.
00:00:21
In his spare time, he's a part-time DJ, he's a lover of fine wine. He's talked about family being important, and getting work-life balance. It's not what you would typically expect a bank like Goldman Sachs to go for. So I think we're going to see some significant cultural changes at the bank.
00:00:39
>> The change comes at a turning point for the bank, which is trying to rely less on trading. Revenue for which has declined over the last decade by more than $20 billion in a more regulated industry. And squeeze more money out of other businesses, like its consumer bank, where it's trying to generate another $5 billion a year.
00:00:58
>> The challenge for David Solomon is to transition the bank through this difficult period. At the moment, there is a great deal of skepticism among the investment community. As to whether Goldman Sachs can develop other business divisions. That can make up for the shortfall that it's seen in trading revenues since the financial crisis.
00:01:16
>> Solomon will replace long-time chief, Lloyd Blankfein, who had to pick up the pieces after the financial crisis.>> In many ways, the past ten years has been a repairing job. And also adjusting the business to adapt to the new regulatory environment. David Solomon, he's been at the bank for several years.
00:01:35
But he comes from the investment bank inside rather than the trading rooms.>> Blankfein reportedly will get as much as $85 million in compensation when he leaves. Solomon takes over as CEO on October 1st.