Goldman Sachs will name new CEO to succeed Lloyd Blankfein tomorrow

Goldman Sachs will name president David M. Solomon to succeed Lloyd C. Blankfein as its next chief executive officer on Tuesday, sources familiar with the situation said.

The news will be disclosed to all the company's managing directors in a conference call Tuesday morning, according to the sources, who declined to be identified speaking about management's plans. The New York-based investment bank is also scheduled to report second-quarter earnings tomorrow.

The move allows Solomon, 56, to take further steps to put his own management team in place, according to the New York Times, which earlier reported that an announcement was coming this week. Blankfein, who presided over the investment bank during a tumultuous 12 years, will stay on for a transition period, according to the Times.

Solomon's ascent has been expected since he was named sole president of Goldman Sachs in March, edging out his former co-president Harvey Schwartz. But the timing of the announcement is coming earlier than first thought; earlier in the year, a formal announcement was expected in the fall.

Blankfein, 63, is the longest-tenured CEO of a major Wall Street bank along with J.P. Morgan CEO Jamie Dimon, who started a few months before him in 2006.

His successor must focus on the bank's historic strengths in trading and investment banking advisory while continuing to build out the bank's new consumer-facing businesses, like its Marcus brand. The consumer business offers savings accounts and loans, but could ultimately spread to credit cards, mortgages, car loans, life and health insurance through Marcus, according to a May bank presentation.

Solomon, who is an electronic dance music disc jockey in his spare time, has said employee diversity is a priority at Goldman Sachs and has cited his unusual hobby as an ice-breaker in conversations with junior bankers.

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