Goldman chief Blankfein reveals he has ‘highly curable’ form of cancer
The boss said he would be able to work substantially as normal during treatment for a form of lymphoma
Goldman Sachs Group Chief Executive Officer Lloyd Blankfein said on Tuesday he had a “highly curable” form of lymphoma, and would be able to work substantially as normal during treatment.
Treatment will include chemotherapy over the next several months in New York, Blankfein said.
While Blankfein, 61, is undergoing chemotherapy, other senior bank officials will assume some of his responsibilities in dealing with the public, including Chief Operating Officer Gary Cohn, the second highest ranking executive, a person familiar with the matter said. Blankfein said he would curtail some travel while he was treated.
The bank’s board has succession plans in place for multiple contingencies, the source said.
The bank’s shares fell 2.2 per cent to US$179.31.
Goldman executives said Blankfein had never hinted at when he might retire or his plans after Goldman. Obvious internal successors include Cohn, Vice Chairman Michael Sherwood, investment banking co-head David Solomon, Chief Financial Officer Harvey Schwartz and Chief Strategy Officer Stephen Scherr.
Blankfein’s disclosure comes a little more than a year after JPMorgan Chase & Co CEO Jamie Dimon said he had throat cancer. Dimon continued to lead the bank during treatment.
Blankfein’s life is a classic New York rags-to-riches story. He was born in the South Bronx and raised in a housing project in the East New York neighbourhood in Brooklyn. His father worked at the post office, and his mother was a receptionist.
He worked his way through Harvard College and Harvard Law School, helped by financial aid. After graduating Harvard Law, his first job was as a tax lawyer. In 1981, he joined commodities broker J. Aron & Co as a gold salesman just months after the firm was bought by Goldman. He rose through the ranks at J. Aron and then Goldman, becoming president and chief operating officer in 2004.
Blankfein has been the bank’s chairman and CEO since 2006.
Lymphoma is cancer that begins in the lymphatic system, which is a part of the immune system that carries away waste and transports white-blood cells that attack disease. It can occur as Hodgkin lymphoma, which has a five-year survival rate of about 86 per cent, or non-Hodgkin lymphoma, which has a five-year survival rate of about 70 per cent.
Blankfein did not disclose the type of lymphoma or the stage of his cancer. He received a final diagnosis on Monday around midday, and informed Goldman’s board of directors around 4 pm, the source said.
“There are many people who are dealing with cancer every day,” Blankfein said. “I draw on their experiences as I begin my own. I have a lot of energy and I’m anxious to begin the treatment.”
JPMorgan’s shares lost more than 3 per cent of their value in the week following Dimon’s announcement, more than 2 percentage points worse than the KBW bank stock index.
