WSJ Columnist Joins Chorus of Pundits Calling for Lloyd’s Head

Echoing some other pundits out there, Wall Street Journal columnist David Weidner has now joined the crowd calling for Lloyd Blankfein to resign from Goldman.

Author:: Zachery Kouwe
Updated:: Jan 14, 2019
Original:: May 6, 2010

Echoing some other talking heads out there, Wall Street Journal columnist David Weidner called today for Lloyd Blankfein to step aside so Goldman can put its damaged reputation behind it.

With Warren Buffett and the Goldman board firmly in Lloyd’s camp, we’re skeptical that he’ll actually be forced to step down, especially if Goldman’s earnings continue to outperform. If the firm's shares keep sliding, however, other Goldman shareholders may start getting restive.

Weidner points out that the departure of Ken Lewis helped Bank of America put its troubles in the past.

Since Mr. Lewis stepped down, Bank of America shares have added 6% and the company has repaid the $45 billion it received from taxpayers. More importantly, with Mr. Lewis gone, critics no longer have an obvious target in management.
A change at the top of Goldman would, in the same way, stanch the bleeding. A fresh face in the executive suite would give the firm the advantage Brian Moynihan now enjoys at Bank of America: Don't blame me, I wasn't there.

lloyd-dude1

Lloyd Blankfein has no time for your Trumponomics alarmism.

Back in February, a disturbing report was published claiming that Lloyd Blankfein had plans to step down from his position as CEO of Goldman Sachs "as early as this summer." The idea of a world without Blankfein's sass, twinkle, street roots, and I-am-unable-to-hold-back-exactly-what-I-think-of-what-you're-saying-via-the-expression-on-my-face face was more than a little unpalatable and extremely tough to take. Luckily, we don't have to. Appearing on CNBC earlier today, Lloyd told Gary Kaminksy that 1) former employee Greg Smith never brought up any of his gripes in 360 reviews and 2) he's not going anywhere. “I have no plans to leave,” Mr. Blankfein said Wednesday, while insisting that his board has never suggested he step down...[as for] Mr. Cohn, a long-time deputy of Mr. Blankfein who is widely touted as his possible successor, Mr. Blankfein said the board has a list of possible CEOs in mind “including, but not limited to, Gary.” LB also noted that the major mistake made by Goldman running up to the financial crisis was working with les incompetents. “The biggest threat to Goldman—the existential threat—was the poor performance and bad risk management by some competitors with who we have business relationships," he said. Goldman CEO: I'm Not Leaving [Crain's] Goldman Sachs CEO: 'We haven't gotten everything right' [Video]

It’s fair to say that members of the Financial Crisis Inquiry Commission is pissed as hell at what it thinks are efforts by Goldman Sachs to ride out their investigation. The commission’s chairman, Phil Angelides, blasted Goldman on a conference call with the media today, after announcing the panel sent the firm a subpoena for specific documents and emails.

SummerOfLloyd

Lloyd Blankfein is going to spend the next two a half months existing somewhere between TGIF and DGAF.

Time was, Jamie Dimon was the most popular CEO on Wall Street and America's "Least Hated Banker," for reasons that included the fact that the man has soulful blue eyes, charisma out the ass, and was in charge of one of the banks that a) didn't go out of business during the financial crisis, like Lehman and Bear and b) supposedly didn't actually need the bailout money the government made it take (as JD has said previously), like Bank of America and Citigroup. The man, in the hearts of many and especially the adoring press, could do no wrong. Which is why it probably stung a lot that Lloyd Blankfein, a Wall Street CEO who also possesses more charm than a person would know what do do with, who was also in charge of a bank that neither went out of business during the financial crisis nor required the bailout money it was forced to take (according to GS), and who is also the owner of a pair of baby blues, though in his case ones that sparkle, could only do wrong. And while LB is not one to gloat at another's misfortune, especially that of a friend, he's obviously feeling pretty good about being living proof of the old saying, "only one Wall Street CEO's balls can be in a vise at a time," and right now it's JD's turn. Dimon did not attend the annual Robin Hood Foundation party [last night], but Blankfein was there, enjoying a rare night out of the spotlight. He shook hands, introduced his wife and, grinning broadly, posed for pictures. For months, Goldman Sachs has been portrayed as the callous Wall Street behemoth whose executives collected giant bonuses while America's housing crisis worsened and unemployment rose. But Monday night was different. "No one cares about Lloyd tonight. It is Jamie against the world, and that's got to feel good for Lloyd," another hedge fund manager said. And this is just the beginning. First, they stop calling you Satan and claiming you poisoned their food, next glowing profiles and cover stories devoting major column inches to your rippling biceps and the throngs of women you beat off with a stick. Dimon Pushes Blankfein Off Hot Seat At Charity Gala [Reuters] Robin Hood Scene: Blankfein, Soros, Rihanna [Bloomberg/Photo]

Lloyd Blankfein may step down as chief executive of Goldman Sachs as early as this summer; and president and chief operating officer Gary Cohn is the lead candidate to replace him, according to a Goldman executive and a source close to the firm. A Goldman spokesman declined to comment. To be sure, anything can happen over the course of the next few months and the departure of Blankfein, 57, is not certain. It is still up in the air whether Blankfein wants to step down. It would also not be unheard of for Blankfein to share the role of CEO, as so many others at Goldman have in the past. Former co-heads include John Weinberg and John Whitehead; Robert Rubin and Stephen Friedman; and Jon Corzine and Henry Paulson. ... It seems increasingly certain that Gary Cohn would replace Blankfein. [Fortune, earlier, earlier]