Dick Bove, who yesterday downgraded Goldman Sachs because of Rolling Stone’s latest take-down article about the bank, told the NYPost today,
“If the Justice Department acts upon recommendations by Congress, there’s no way that Blankfein will be able to stay. He will have to leave.”
There’s been a big Will He Or Won’t He debate going on about whether or not Blankfein will stay at Goldman.
Bove is referring to the Senate’s recent recommendation that the DOJ investigate whether or not Blankfein and the other Goldman execs who testified at Congress committed perjury. His point: If there’s an investigation, how could Blankfein stay CEO?
Will He stay?
- Sources told the NYPost that Blankfein has expressed a desire to remain at Goldman for at least another two years to right the ship.
- Blankfein said at the recent annual meeting that he is staying. He joked, “Why would I leave and give all this up?”
Here’s why he might not:
- He’s been there for 5 years come May 31, the average number of years CEOs lead Goldman.
- His tenure has been a PR disaster
- If there’s an investigation, how could he stay CEO?