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Lloyd Blankfein

Lloyd Blankfein is a financial executive who joined Goldman SachsGoldman SachsGoldman Sachs is an American financial services group headquartered in New York whose businesses include investment banking, securities trading, asset management, and wealth management. It traces its origins to the commercial paper business Marcus Goldman founded in 1869; it listed on the New York Stock Exchange in 1999 under the ticker GS and became a bank holding company in 2008. David Solomon serves as chairman and chief executive officer.Open the full entry’ commodities trading unit J. Aron in 1982 and later served as CEO of Goldman Sachs for about 12 years until David SolomonDavid SolomonDavid Solomon is a banking executive and the current chairman and CEO of Goldman Sachs. He joined Goldman Sachs as a partner in 1999, later serving as head of its financing and investment banking businesses, president, and chief operating officer, before becoming CEO in 2018 and also chairman in 2019. He is also involved in music production and the governance of nonprofit organizations.Open the full entry succeeded him in October 2018.

Contents6 sections
Key facts

Early Life: Birth and Education

Legal Career

After law school Blankfein worked for about four years as an associate at the law firm Donovan Leisure, focusing on tax work.⁠[1]

J. Aron and FICC

Goldman Sachs acquired the commodities and foreign exchange trading firm J. Aron & Company in 1981. At the end of 1982 Blankfein joined J. Aron’s gold bullion sales desk.⁠[2][1]

He was chosen to run J. Aron in 1994, became co-head of the merged Fixed Income, Currency and Commodities (FICC) division in 1997, and ran the division from London in 1998 and 1999.⁠[1]

CEO of Goldman Sachs

Henry Paulson later named Blankfein as his successor. Blankfein led Goldman Sachs as CEO for about 12 years, a period that included the credit crisis and record profits.⁠[1][3]

In January 2010 Blankfein testified as Goldman Sachs’ CEO on the first day of hearings of the Financial Crisis Inquiry Commission. Commission chair Phil Angelides questioned him about Goldman selling subprime mortgage-related securities while reducing its own positions in them; Blankfein said the firm, as a market maker, had to manage its risk, saying, “The act of selling it reduced our risk,” and that the buyers were professional investors who wanted the exposure.⁠[4]

In July 2018 Goldman Sachs announced that David Solomon, who had been named sole president that March, would succeed Blankfein as CEO on October 1, 2018.⁠[3]

Conversation with a16z

The conversation covered risk management as both a discipline and a mindset, leadership and decision-making under pressure, the difference between being wrong and being reckless, extreme uncertainty during the 2008 financial crisis, organizational resilience and culture while scaling, Goldman Sachs’ partnership culture and accountability, and technology’s role in transforming financial markets along with the potential and risks of AI in increasingly complex systems.⁠[5]

Sources

  1. Where Blankfein came from (opens in a new window)
  2. Goldman Sachs Adds Strength in Commodities and Foreign Exchange With J. Aron Acquisition (opens in a new window)
  3. Goldman Sachs Ushers In New Era as Solomon Takes CEO Reins (opens in a new window)
  4. Financial Crisis Inquiry Commission Day One (opens in a new window)
  5. Lloyd Blankfein on Risk, Crisis, and Leadership (opens in a new window)
  6. Goldman Sachs Chairman on Why Finance Adopts AI Differently | a16z (opens in a new window)