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The end of Lloyd Blankfein's 12-year reign at Goldman Sachs heralds a new era at Goldman Sachs. Will his successor, David Solomon, enable the change that the Wall Street giant so desperately needs? 

«I love Goldman Sachs», said David Solomon, within an hour of taking over the reins as Goldman Sachs' first new CEO in a dozen years. Solomon was making what Goldman bankers have said was a «solid acceptance speech» on a conference call with all the firm's managing directors on Tuesday morning U.S. time.

Bringing an end to Lloyd Blankfein's twelve-year reign as Goldman Sachs CEO during what were possibly the most dramatic years in its 149-year history, amateur DJ and former star banker Solomon, 56, has been named the new CEO of the firm.

How can anyone «love» a bank like Goldman Sachs? CEO Lloyd Blankfein coolly led the bank through the financial crisis, but also suffered the ignominy of being dubbed a «great vampire squid wrapped around the face of humanity», stuffing anything smelling of money into its «blood funnel». With a 2009 remark that Goldman Sachs was simply doing «God's work», Blankfein definitively advanced to the symbol of Wall Street's arrogance.

Leaving Feet First

Although it has been possibly the worst kept secret in American investment banking, Blankfein's resignation has nonetheless dominated news headlines this afternoon and sparked much debate as to whether the change of guard will trigger significant structural changes at the bank that spent a few quarters last year lagging behind traditional rivals J.P. Morgan and Morgan Stanley.

Goldman's second-quarter trading revenue dropped 19 percent sequentially, the bank said on Tuesday. Indeed the bank, that prides itself on its «culture of excellence» may well have tired of Blankfein's misplaced belief that trading revenues at the bank would rebound to pre-crises levels, and decided to back Solomon – an erstwhile banker rather than trader and someone who is known within the firm to be a «star dealmaker».

The timing of the announcement is interesting: Blankfein has joked he would likely die working at his desk rather than retire. Though the CEO later walked back his comments, it became clear he was not entirely joking when the 64-year-old did not step down from his role while undergoing treatment for lymphoma in 2016. 

Last Man Standing?

When he did concede that there would likely be a change of leadership at the American bank, Blankfein indicated an announcement would likely come in the fall of 2018 at the earliest. An almost 10 percent decline in the share price in the year to date may well have precipitated the move towards new blood.