Goldman Sachs’s Scherr Takes On Role of Banking Chief Executive

  • Scherr succeeds Esta Stecher, drops Latin America leadership
  • Marc Nachmann takes over Latin America business, memo says

Stephen Scherr, Goldman Sachs Group Inc.’s chief strategy officer, will take on the additional role of chief executive officer for banking operations.

Scheer succeeds Esta Stecher, who will become non-executive chairman of GS Bank USA, the New York-based firm said in an internal memo Friday. He will hand off the position of head of the Latin America business to Marc Nachmann, who runs the global-financing group.

Stephen Scherr

Photographer: Jon Halty/Bloomberg

“Stephen will lead the firm’s efforts to identify and implement new lending and deposit funding opportunities in ways that are accretive to the firm while leveraging the firm’s strength in technology and risk management,” CEO Lloyd Blankfein and President Gary Cohn said in the memo.

Goldman Sachs has been building its banking operations since becoming a bank-holding company in the wake of the financial crisis, as a strategy to diversify its funding sources. Last month, the firm completed its purchase of General Electric Co.’s online bank, adding $16 billion of deposits.

The Wall Street Journal and Reuters reported the moves earlier Friday.