Goldman earlier this month inducted just 60 or so new partners into the upper ranks of the firm, the smallest showing in years as CEO David Solomon continues to push the bank in the direction of becoming more like a financial supermarket, and less like the trading-and-dealmaking behemoth that has ruled Wall Street for decades.

And with the bank finally moving on from the 1MDB fiasco while continuing to pour resources into their commercial banking expansion efforts like its new Apple co-branded credit card along with Marcus, its consumer-banking and lending platform, some of GS’s top dealmakers are heading for the exits. According to WSJ, Goldman Sachs’ co-head of investment banking, Gregg Lemkau, once a potential contender to be CEO, is leaving.

The bank’s investment bank has been outperforming this year amid a surge in revenue tied to both trading and dealmaking, but bonuses are still expected to shrink even for top rainmakers.

According to Hoffman, although he’s long been seen as a top leader within the bank, but with Solomon now firmly in control, his chances of becoming CEO have been reduced to a “long shot”.

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He’s reportedly leaving to take a top position at a private equity firm, which likely promises to be far more lucrative, even than Goldman. We can only assume he’ll take a few of his top lieutenants with him, meaning that his departure could go a long way toward dismantling the aggressive dealmaking culture for which the bank is known.

Years ago, leaving a job like this for PE was unheard of: Top Goldman partners were already among the most powerful people on Wall Street. Things have changed since then, however, and just like how hundreds of young analysts are working to move from the sell side to the buy side, top execs are following suit.


Via Zerohedge