Goldman profits tumble and CEO steps back from the dancefloor
Goldman Sachs today unveiled a plunge in profits – and CEO David Solomon confirmed he will stop DJing to end the media “distraction” caused.
Solomon has been under pressure for a while. The once mightiest of the Wall Street investment banks has now recorded falling earnings for eight straight quarters.
Last week JP Morgan, its arch rival, reported a 35% jump in third quarter profits to $13.2 billion – way better than already optimistic expectations.
Today Goldman said net income fell from $3 billion a year ago to $1.88 billion, shy of investor hopes.
Solomon wants to expand Goldman’s asset and wealth management arms. It has traditionally made most of its money from trading and deal making.
Solomon became famous for DJing under the moniker DJ D-Sol, and had performed at the Lollapalooza festival among other places.
He has not performed publicly for more than a year, the bank said.
His best-known musical work is a remix of Whitney Houston’s I Wanna Dance With Somebody.
Primary Wave Music, which owns the rights to the song, is a Goldman client.
Like other big banks, Goldman has been stymied this year by a lack of mergers and new public flotations.
It also backed away from retail banking after considerable investment.
“We continue to make significant progress executing on our strategic priorities,” Solomon said today. “I also expect a continued recovery in both capital markets and strategic activity if conditions remain conducive.”
Goldman shares were steady today at $315. At that price, the bank is worth $104 billion.
