David Solomon, now heir apparent at Goldman Sachs to CEO Lloyd Blankfein, is known for boosting the investment banking division's revenue, spearheading a move to ease the workload of junior bankers and working as an occasional disc jockey with the stage name D.J. He is not expected to return to Goldman. Goldman is valued at about $100 billion and employs 6,000 people in London.
Vertical Group analyst Dick Bove, who sharply criticized Blankfein's leadership of Goldman, said selecting Solomon would position the bank for new opportunities amid changing U.S. policies on taxes, trade and potentially fiscal stimulus.
Schwartz and Solomon were not quoted in the announcement.
"Harvey has been a mentor to many, and his influence has made an indelible impact on generations of professionals at Goldman Sachs", Lloyd Blankfein, Goldman's CEO, said in a statement.
There would be an interim period with Solomon as chief executive and Blankfein serving as executive chairman before leaving the firm at the end of 2018 or in the first quarter of 2019. Blankfein later tweeted that he hasn't made an announcement.
He joined Goldman in 1999, and oversaw investment banking during and after the financial crisis.
Now that his succession of Blankfein is all but certain, expect the 150-year-old investment bank's transformation into the Google of Wall Street to only accelerate from here. Mostly he has doubled down on the trading and risk-taking that otherwise fell out of favor across much of Wall Street.
Prior to joining Goldman Sachs, Solomon worked at Bear Stearns, where he helped run the now-defunct investment bank's junk bond business.
Mr Schwartz served five years as global co-head of the securities division, before being named CFO in 2013. He serves on the board of The Robin Hood Foundation, a nonprofit for fighting poverty in New York City. In an address at his alma mater, Hamilton College, Solomon said China's economy would surpass that of the U.S.