Two of Goldman Sachs Group Inc‘s GS top investment bankers are reportedly considering leaving the firm. The bankers are allegedly unhappy about being left out of a new operating committee set up by CEO David Solomon.
What Happened: The exclusion of Mark Sorrell and Gonzalo Garcia from the new committee has prompted them to contemplate leaving the investment bank. Sorrell, the co-head of mergers and acquisitions, and Garcia, the co-head of European investment banking, are both considering this move, reported the Financial Times.
The new committee, established by Solomon earlier this year, is intended to promote a new generation of leaders at Goldman and streamline decision-making. The committee includes about a dozen members, among them tech banker Kim Posnett, private equity specialist Pete Lyon, and Marshall Smith from the healthcare team.
If Sorrell and Garcia do resign, they will join a list of high-profile departures under Solomon’s leadership. This comes after a challenging year for the Wall Street firm, which saw a loss-making venture into consumer lending and a prolonged slowdown in investment banking revenues.
Goldman Sachs did not immediately respond to Benzinga's request for comment.
Why It Matters: Goldman Sachs has been through a series of significant changes and challenges in recent times. In October, the bank was reportedly reconsidering its venture into consumer lending, a move initiated by launching a joint savings account with Apple. The bank faced internal dissent and operational challenges, prompting a reevaluation of this strategic direction.
Solomon’s hobby as a DJ had also come under fire, with reports suggesting it was a distraction from his primary role. Solomon decided to retreat from DJing roughly a year ago, amid escalating media scrutiny.
Additionally, in August, John Rogers, a Goldman Sachs executive dubbed the “CEO Whisperer,” stepped down after nearly 30 years at the Wall Street firm. Rogers’ departure was part of a series of executive changes at Goldman Sachs, indicating a significant shift in the bank’s leadership.
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