Goldman Sachs CEO David Solomon addressed recent criticism in a live interview on CNBC, acknowledging that it was “not fun,” but emphasizing his commitment to running the firm. He stated that he did not recognize the negative portrayal of him in the media and that his colleagues and clients shared this sentiment. Despite this, he expressed an openness to reflection and improvement.
Criticism towards Solomon has included his leadership style and strategy, with former CEO Lloyd Blankfein seemingly disapproving of his time spent as a DJ. In response to these criticisms, Goldman Sachs is divesting its consumer businesses, including selling fintech firm GreenSky, while retaining its core Marcus savings business, which has over $130 billion in deposits.
The second-quarter profit of the Wall Street giant declined by 60%, falling short of expectations due to write-downs on consumer businesses and real estate investments. However, Solomon expressed optimism about capital markets, citing potential for increased activity if upcoming initial public offerings, such as SoftBank Group’s Arm Holdings, perform well. He also suggested that improved confidence among corporate CEOs could lead to an uptick in mergers and acquisitions, though activity may remain slow.
Solomon commented on the resilience of the economy, acknowledging that it has exceeded expectations. He stated that CEOs are expressing a desire to resume business activities. While US consumer spending has accelerated, slowing inflation indicates that the Federal Reserve is unlikely to change interest rates at its upcoming policy meeting.
Regarding regulatory proposals for stricter bank capital rules, Solomon believes they have gone too far and could impede economic growth without necessarily enhancing the safety of the banking system. He mentioned ongoing discussions between banks and officials regarding these proposals, which require large banks to increase capital reserves.
When asked about his DJ hobby, viewed by some as incongruent with Goldman Sachs’ culture, Solomon reaffirmed his focus on his role at the firm, indicating that his spare time interests would not interfere with his responsibilities.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
