Goldman Sachs Group Inc. is turning to a longtime Lloyd Blankfein confidant as the Wall Street giant grapples with internal bickering and dissatisfaction in the ranks.
(Bloomberg) — Goldman Sachs Group Inc. is turning to a longtime Lloyd Blankfein confidant as the Wall Street giant grapples with internal bickering and dissatisfaction in the ranks.
Russell Horwitz will take over as chief of staff from John Rogers in a role that has been used to build consensus in top management and help maintain Goldman’s clout in government circles. Horwitz most recently worked for Ken Griffin at Citadel before leaving earlier this year.
Both Horwitz and Rogers have been known for their willingness to be critical of management missteps and for fostering close connections in Washington. Rogers will maintain some of his roles, including his perch as an adviser to Goldman’s board of directors.
“Russell will oversee the operations of the executive office, including corporate communications, government and regulatory affairs, and corporate engagement,” Chief Executive Officer David Solomon wrote in a note to staff.
Questions about the firm’s leadership have mounted as key executives quit the company in recent months, including those hand-picked by Solomon for bigger jobs. They included Julian Salisbury, chief investment officer of Goldman’s asset- and wealth-management business. Senior executives have also been increasingly critical of the CEO in private forums even as financial results kept pace with and even exceeded competitors by some measures, especially in the core investment bank.
Horwitz, who previously spent 16 years at Goldman, started out in the Clinton White House and then worked for former US Securities and Exchange Commission Chairman Arthur Levitt. He also had a brief stint at Bloomberg LP, the parent of Bloomberg News.
Horwitz was closely involved in negotiating agreements with authorities to put an end to international probes targeting Goldman’s role in the looting of Malaysian investment fund 1MDB. While the bank ultimately forked over $5 billion and admitted breaking the law, it avoided a US conviction.
A key adviser to the investment bank’s top leaders, Horwitz was once described by Blankfein, the New York-based company’s former CEO, as the most important person at the firm whose role nobody knows.
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