A part time DJ and the future CEO of Goldman Sacchs, David Solomon, needs to change the tune at Goldman Sachs.

The legendary investment bank is in a bit of a slump. It has become the second worst stock on the Down this year. However, the shares of Goldman Sachs have declined 11 straight sessions through Wednesday.

That’s the longest losing streak for Goldman Sachs since the Wall Street firm went public in May 1999.

The recent slide has erased about 6% of Goldman’s market value. However, that’s a far cry from the steep sell-offs during the terrifying days of the financial crisis that erupted exactly a decade ago.

The part-time electronic dance DJ, who spins records under the nickname DJ D-Sol, will officially takes over for CEO Lloyd Blankfein on October 1.

Solomon is already making his presence felt. On Thursday, the incoming CEO announced that Chief Financial Officer Martin Chavez will be replaced by Stephen Scherr, who had been in charge of the consumer bank. Goldman also named John Waldron, a longtime lieutenant of Solomon’s, as the new president and chief operating officer.

Blankfein is a tough act to follow. He steered Goldman Sachs through the 2008 meltdown and led the elite firm’s push into consumer banking. Blankfein is the second-longest tenured Wall Street boss, after JPMorgan Chase CEO Jamie Dimon.

But Goldman’s vaunted trading division has stumbled of late. Goldman recently suffered its worst ever quarter for trading commodities.

The main problem was the market which has been relatively tame recently. While chill markets are welcomed by mom-and-pop investors, bouts of volatility help generate revenue for investment banks.

“The markets have been fairly calm,” said CFRA Research analyst Ken Leon. He estimated that 40% of Goldman’s business is tied to capital markets. And that doesn’t include lucrative underwriting fees for IPOs and debt offerings.

On Thursday, Solomon tapped Chavez, the outgoing CFO, to co-lead the struggling trading division.

Another headache for Goldman Sachs: regulators recently imposed limits on the company’s ability to ramp up dividends and buybacks. The Federal Reserve, in its June stress tests, ruled that Goldman Sachs originally submitted overly aggressive plans that would have dropped capital levels below what officials consider acceptable. The concerns were driven by a one-time accounting hit caused by the corporate tax cut.

Goldman Sachs shares have dropped 10% so far this year, worse than every other current member of the Dow other than Post-It maker 3M.

Mia Noles
Mia Noles is a writer at the Ode Magazine. She holds a Bachelor of Arts English Literature Degree from Leeds University. Her specialty is Celebrity News, History, and World News. She is also a life enthusiast who loves traveling the world and taking part in humanitarian courses. You can contact her at mia@odemagazine.com.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.