Shock resignation by Goldman Sachs chief
Wednesday 14 September 1994
He will be replaced at the head of Wall Street's most successful partnership by John Corzine, a 20- year Goldman veteran and head of the firm's fixed-income group.
Mr Friedman, 56, was named co-chairman of Goldman along with Robert Rubin - now the chairman of President Bill Clinton's National Economic Council - only four years ago, although the pair had run its day-to-day operations for several years before. With Mr Rubin's resignation in December 1992, Goldman abandoned a long tradition of shared management leadership.
With the promotion of Mr Corzine, a former commercial banker, Goldman will revert to a more typical Wall Street hierarchy, adding a chief operating officer, Hank Paulson, who will also serve as vice-chairman. Mr Paulson, a one-time aide to Richard Nixon, is currently joint head of Goldman's investment banking department.
The news was released in a memorandum by Mr Friedman to Goldman's partners and 6,500 employees yesterday. Mr Friedman - who joined Goldman in 1966, was made partner in 1973 and has served on its management committee for 14 years - said the job had become 'more than a little tiring'.
Goldman - which rivals the much larger, publicly traded Merrill Lynch as Wall Street's most profitable firm - is 'in all fundamental ways' stronger than it has ever been, Mr Friedman said, having rung up dollars 2.7bn in pre- tax profits last year.
'Having said that, 1994 has been a frustrating year for all of us,' he wrote. Goldman's huge trading operation suffered big losses in the derivatives markets when the Federal Reserve reversed the trend in US interest rates last winter; in February alone, the firm lost dollars 150m.
- 1 This is what happens when you tattoo Charmander on yourself, drunk, and with no experience
- 2 BBC election debate: The one photo that summed up the whole 90-minute leaders debate
- 3 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 4 The Batman v Superman: Dawn of Justice trailer has leaked – watch
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
If I’m being racially abused I don’t need a white stranger with a saviour complex to rescue me
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
Russian warships in English Channel 'to conduct anti-aircraft and anti-submarine military drills'
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...