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FBN’s Charlie Gasparino with news that Goldman Sachs wants Lloyd Blankfein as CEO in order to avoid a civil war within the firm.
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The board of directors of Goldman Sachs wants Lloyd Blankfein to stay in his job and -- -- saying is to try to avert an all out civil war Charlie Gasparino.
Has all the details Charlie.
But you know we were reporting earlier that point but it's telling people he wants to state this is actually.
A little more complicated story here is what we know from insight Goldman Sachs were getting this from sources both executives -- Goldman.
As most people very close affirm what they're saying essentially this is that the board wants Blankfein India because they believe there's essentially no one else they can take the job.
And avert a civil war what do we mean by civil -- you know.
The bankers and the traders have always been jostling for power inside that place usually -- single person from either side.
-- and basically rally the troops they do not have that single person other than Blankfein right now as you know there's been difficult for years from Blankfein.
-- still apparently under investigation for that possible perjury charge.
Never been alleged misstatements made to the eleven committee was referred the Justice Department has not been chart cleared -- that.
And a host of other -- you know the whole story for the past three years to Greg Smith column that -- actually appeared in the New York Times under a lot of pressure on the normal circumstances.
And I know the global board has discussed this -- would give at least some power probably -- chairman's job something to sort of move towards a succession plan.
But we understand is essentially no succession plan in place.
Gary -- the number two right now.
The president of Goldman if he gets the job that you see -- you will see probably an exodus of bankers to bankers leave it there time.
If any of those bankers get it there's two guys Michael Sherwood Michael -- -- the top.
Potential players as bankers replaced Reuters T get them if they get a right now well a lot of people on the trading side might -- And that's the problem at the boards -- that the board basis.
That's right essentially like -- -- for the immediate future is in the job it's much more complicated he wanted to be there.
It's the board trying to avert what I -- is is an all out civil war.
-- point out that in which you're gonna see now to sort of solidified.
Lloyd in that job because see a little bit of a public relations campaign because -- go out there just to sort of friendly media.
Places that are not gonna really be asking him -- the super tough questions.
And he's gonna sort of reintroduce himself but to try to remake his image not going to be easy given the last couple years but that's what the new PR -- -- Jake -- you know Jake used to work could be -- Treasury Department that he was the chief counselor for for Tim Geithner.
That's what he's doing right now and you'll see -- rolled out.
Very very -- -- to matter to try to remake of but the bottom line is this what the board is worried is Blankfein leaves.
Power vacuum one of these other guy is not -- ability to basically.
Q the firms together you know as much as bankers and traders are always -- jostling the guy at the top bank also -- he -- -- he kept out of everybody aligns.
What -- granted he still as sort of spreads on both sides to -- could replace them and like is that he you know he faced a difficult year -- -- normal circumstances he would -- replaced.
Those guys don't have that sort of dynamic and that's but the board is afraid of.
He Charlie I mean the of course kind there is a succession plan that would have to do.
I mean and united cats are they they claim there is a succession plan and they would have to say about what it would -- what is you don't Italy I'm in -- you know they know what it is they have several internal candidates and external candidates are -- -- progress as he -- I don't want to name.
Listen data if you.
You know if you listen to their words when there asked about there's.
They're very short on details.
But to do they have the succession plan -- Lloyd -- -- -- part of our got a -- Of course I mean -- gotten pretty short Gary -- an emergency basis steps then.
But they don't like they don't they don't wanna do that they can't do that this is that this is a company.
That he's very much divided right now what is divided on personalities obviously bankers vs traders.
They still haven't settled -- -- business model given the fact that the vocal rule.
May or may not be implemented in a couple years member that hurts Goldman and a major way because this is -- -- that you know these markets traded.
Oh -- rule sort of inhibits treating -- -- that kind of thing crisis right now.
Is that a good firm yes there there might be a much suggests you sell the stock although I was an investor -- watch all the stuff but there is clearly internal strife.
About about succession there is no doubt about that.
Our veterans right -- -- thank you so much.
-- we -- viewers there's chart Goldman up about 41 cents.
