- Goldman Sachs' equities chief Paul Russo, who has run the business since 2012, is leaving the firm.
- The departure comes as incoming CEO David Solomon puts his own leadership team at the top of the bank.
- Goldman's equity trading revenue lagged behind peers during the second quarter.
Goldman Sachs' equities chief Paul Russo is leaving the bank, according to a source familiar with the matter, as incoming CEO David Solomon looks to put his own leadership team at the top of the Wall Street firm.
Russo, who has worked at Goldman his entire career, exits as the firm's equities division has lagged peers and the bank has given up market share to rival firms like Morgan Stanley.
During the second quarter, most big banks showed strong results in equities but Goldman posted a flat performance relative to the prior year. The business represents one of the biggest challenges facing Solomon.
Once Russo departs, Goldman is likely to elevate trading executives including Brian Levine, Jeff Nedelman and Phil Berlinski to help manage the stock trading team alongside Russo's counterpart Michael Daffey, the source said.
A Goldman spokesman declined to comment on Russo's departure.
The equities business broadly is under pressure as structural changes over the last few years like the rise of electronic trading have shaved off around around $15 billion from the equities fee pool, according to a report from Morgan Stanley and management consulting firm Oliver Wyman.
Electronic trading has dramatically boosted trading volumes, while making the cost of trading much cheaper.
The Wall Street Journal reported earlier on Russo's departure.
See also:
- Goldman Sachs has created a new team to take on high-speed traders like Virtu and Citadel Securities at their own game
- Goldman Sachs just named its next CEO — here are the execs who will be in and out, according to a dozen insiders
- Goldman Sachs has poached an up-and-coming equities trader from Barclays — bolstering a lagging business for the Wall Street giant
- Goldman Sachs is set to promote a top exec to co-head the securities division, as incoming CEO David Solomon turns to his inner circle
