We'd be remiss if we didn't comment on the Wall Street Journal's totally excellent reporting on the trader versus investment banker battle shaping up at Goldman just in time for the firm's governance-and-nominating committee to select a new chairman and CEO. The gist of things is that there is talk of splitting the chairman and CEO roles, which were previously both held by Hank Paulson.
Mr. [Lloyd] Blankfein [Paulson's presumed heir] landed at Goldman through the back door, taking a job as a gold salesman at a subsidiary in 1981 after the investment bank itself turned him down. Traders in the unit were forced to take a separate elevator, and not long after he arrived at the firm he joined colleagues in wearing red suspenders one day to mock Goldman's investment bankers, according to people familiar with the matter.
Inside Goldman, there is concern that all the names being bandied about for the job of president and co-president are all light on investment-banking experience
A friend of Goldman Sachs, who is altogether too junior to have any real knowledge of this stuff, estimates there is a 70% chance the committee will recommend some sort of power-sharing structure.
Will Goldman Split Top Jobs? [Wall Street Journal]