FOX Business Network (FBN) News Corp (NASDAQ:NWSA) (NASDAQ:NWS) Senior Correspondent Charlie Gasparino reports now that the Justice Department cleared Goldman Sachs Group, Inc. (NYSE:GS) of any criminal wrongdoing following the mortgage backed security probe, “there’s no pressure on” CEO Lloyd Blankfein to leave the firm. Gasparino states Blankfein “stays at the firm at least for the next year” and that a transition will most likely take place once the stock price goes back up around the “132” level.
Excerpts from the report are below:
At this year's SALT New York conference, Jean Hynes, the CEO of Wellington Management, took to the stage to discuss the role of active management in today's investment environment. Hynes succeeded Brendan Swords as the CEO of Wellington at the end of June after nearly 30 years at the firm. Wellington is one of the Read More
On whether Goldman Sachs’ CEO Lloyd Blankfein is being pressured to leave:
“He stays at the firm at least for the next year, after that nobody knows who might replace him. We should point out Gary Cohn is number two, long time number too, President of Goldman Sachs Group, Inc. (NYSE:GS), he has been nipping at his heals for a long time. People say this guy is likely the replacement. And it could come at anytime. Gary Cohn is the best number two on Wall Street. He will walk out. He will start his own hedge fund. And that’s the problem. Blankfein clearly wants to leave on an up note. We do know there’s no pressure on him to leave. Clearly the next year he’s in there.”
On Blankfein waiting for the stock price to rise before departing the firm:
“It’s the same thing with Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE:JPM). What is the one thing Jamie Dimon’s JPMorgan Chase & Co. (NYSE:JPM) wants to do desperately at that firm. Get the stock price back up. And it’s the same thing here. And I think that’s what’s preventing him from leaving anytime soon. In May it was what, 132, that was its 12 month high, I think when it starts approaching that, that’s when you can start talking is there going to be a transition here.”