Solomon will become president and chief operating officer of Goldman Sachs.
On Friday, The Wall Street Journal reported that the 63-year-old Blankfein is preparing to step down as soon as the end of the year. Blankfein, who steered the firm through the financial crisis, has yet to set a timetable for his departure or discuss his plans with senior colleagues, one of the people said.
Goldman Sachs shares advanced 1.5 percent to $270.44 as of 12:08 p.m.in NY, near their highs for the day, after trading as low as $267.04 just after the Journal report.
But on Twitter, Blankfein branded the report the Wall Street Journal's announcement "not mine". "I feel like Huck Finn listening to his own eulogy", he tweeted, referring to an incident in the Mark Twain novel "Adventures of Huckleberry Finn". Prior to taking on the role of President and co-COO in January 2017, Schwartz was GS' CFO for four years. Before that, he served as Goldman's chief financial officer and quarterbacked the firm's transition to tougher regulation.
Nowhere was the news met with more surprise than inside Goldman Sachs.
That person is David Solomon, the bank's co-president and co-COO.
Solomon rose through the financing business after joining as a partner from Bear Stearns Cos. and ran the firm's top-ranked investment-banking business for a decade.
The bank typically maps out its succession planning by naming two or three candidates to top roles. The 55-year-old spends his free time as a DJ at nightclubs and doing yoga with his adult daughter, according to a profile in The New York Times.
Prior to Goldman, Solomon spent almost nine years at Bear Stearns.
Solomon has also tended to be more of a public face for Goldman Sachs than Schwartz has. Solomon and Schwartz have been jockeying to succeed Blankfein for months. Goldman's trading business has stumbled and its stock price is badly trailing rival Morgan Stanley as well as big banks like Citigroup and Bank of America.