Goldman Sachs Group has brought back to its fold senior executive Tom Montag, adding him to its board as the Wall Street giant looks to regain lost ground after its ill-fated foray into consumer banking.
Montag, who had previously co-headed Goldman's securities division besides holding several other senior roles, would now be a part of the bank's audit, governance and risk committees.
Considered to be a close ally of CEO David Solomon, Montag could bolster support for the chief executive, who is looking to undo the damage from a public flop of the investment bank's retail ambition.
Solomon's plans to refocus Goldman to its mainstay businesses of investment banking, trading and asset management is already gaining traction with the board, two sources close to the CEO told Reuters.
"Tom has deep risk acumen that will further strengthen the depth and breadth of skills and experiences represented on our Board," Adebayo Ogunlesi, lead director of Goldman's board, said.
After his first stint with Goldman, Montag joined Merrill Lynch in 2008, which was later taken over by Bank of America.
He has also served as BofA's chief operating officer and the president of its global banking and markets division before leaving in late 2021 to be the CEO of Rubicon Carbon, TPG-backed carbon market solutions provider.
Goldman had on Wednesday reported its lowest quarterly profit in three years, hit by writedowns tied to its consumer businesses and real estate investments.
"This moment in the economic cycle creates meaningful headwinds for Goldman Sachs... We are making tough decisions that are driving the strategic evolution of the firm," Solomon told analysts, warning that the bank was heading into "a period of lower results".
