This is another example of a successful and world-famous entrepreneur who was born and raised in a NYC neighborhood with a dubious reputation. This proves once again that you should never blame your circumstances for your failures: a difficult childhood, lack of a good education, poverty, or an unfavorable environment. In this article, we will tell you how a boy from a poor Jewish family growing up in the Bronx became a millionaire. Read more on bronx1.one.
A difficult childhood
Lloyd Blankfein’s parents immigrated to the US from Eastern Europe. In 1954, a boy was born to the family. The family lived very modestly. Little Lloyd didn’t even have his own bed. He shared it with his grandmother. His father worked the night shift sorting letters and parcels at the post office, and his mother worked as a secretary.
Lloyd received his primary education at a regular local school, then his parents transferred him to a Jewish school. In 1971, the Blankfein family gathered for a graduation ceremony. Lloyd, as one of the best students, was chosen to give the official speech. Perhaps it was this incident that became the starting point for the rapid rise of Blankfein’s career. After all, the graduation was attended by a representative of Harvard, who took a liking to the ambitious and purposeful young man.
Despite the fact that the family did not have the funds for their son’s further education, the university management found a way out in the form of grants and charitable foundations that agreed to finance the education of a promising student.
Read the article to find out where you can get IT education in the Bronx.
So Lloyd entered the most prestigious educational institution in the country. He felt awkward among the wealthy and demanding students. In his free time, he tried to find any opportunity to earn extra money so that he wouldn’t stand out so much among his peers. He worked part-time as a lifeguard at the beach and sold drinks and hot dogs at the stadium during baseball games.
After graduation, Blankfein went to work for the first firm that invited him. For four years he was a corporate tax lawyer at Donovan, Leisure, Newton & Irvine.
First steps in business
Lloyd worked hard and showed great promise at the law firm, but he always wanted something different – something more expressive, risky, not so systematic and constant. Every year, the legal routine depressed him more and more. In 1981, Blankfein finally decided to make a radical change in his life. He wrote up a resume and sent it to several well-known companies at the time, including Morgan Stanley, Goldman Sachs and Dean Witter. But Blankfein received no response.
However, he was determined to leave the law and took a job as a trader at J. Aron & Company, a small firm that conducted various transactions on the commodity exchange. Lloyd worked in the precious metals trading department. It was very difficult for him to switch from the smooth, consistent legal work to the fast-paced trading environment.
The man said it was hard for him to understand them, he couldn’t keep up with them. He remembers being asked at one of the meetings why he was always silent. Lloyd admitted it was a shock for him.
Later, the company Lloyd worked for became the property of Goldman Sachs. So Blankfein, like all the employees, came under the scrutiny of the top management. At first, he did not stand out, until he made the largest deal for the company at that time, for $100 million.
The era of Goldman Sachs
In 1984, L. Blankfein already had 6 currency traders under his command. Later, he became the head of the FX department. Many people said that the new boss had a sixth sense and incredible intuition. He could tell when it was worth taking a risk and when it was better to hold back without even going into details.
The next steps in Lloyd’s career were the status of general partner of the firm, the position of director of J. Aron & Company and the head of the combined division of J. Aron & Company and Goldman Sachs’ fixed income trading division. Whichever department or division Blankfein headed, they were always profitable.
In April 2002, Lloyd was offered the position of Vice Chairman of The Goldman Sachs Group. At that time, investment banks were in the heyday.
In 2006, Blankfein was chosen as a successor by the then chairman of Goldman Sachs, Henry Paulson. At the time, he admitted that he appointed Lloyd because he was different from other “experienced wolves.” He didn’t have the arrogance and superiority, the brashness and aggressiveness that you usually get in the world of big money. Paulson said at the time that there was no trace of arrogance in him, he didn’t feel born for the role. He knew his weaknesses and sought to overcome them.
This is how an ordinary guy from the Bronx, who counted every cent since childhood, became the head of the most powerful investment bank in the world.
Blankfein’s tenure came at a difficult time in the financial sector. There was a protracted global crisis and many high-profile scandals involving Goldman Sachs.
The bank was even accused of collaborating with former Libyan leader Muammar Gaddafi and helping Greece with a loan that later became a bondage for the country.
However, L. Blankfein managed to lead the bank through the global crisis with dignity, without losing profitability or the loyalty of customers and employees.
Blankfein retired
L. Blankfein still gets up in the middle of the night out of habit to check the markets. He stepped down as chairman of Goldman Sachs in 2018. Now, he is interested in philanthropy, swimming and history. But the former trader still can’t get rid of the gambling urge to “trade”. So he doesn’t deny himself the pleasure of buying and selling stocks, commodities and currency several times a day.
During the pandemic, Blankfein lived in the Hamptons or Miami Beach almost all the time. He admits that he misses his old life, missing expression, speed and anxiety, the feeling of always having something to worry about.
Since his resignation, Blankfein has not interfered in Goldman’s affairs or commented on his successor. If he does want to hint at a difference of opinion, he turns it into a joke. Lloyd says he has a rubber phone he bought for his grandson that is not connected to anything. That’s the phone the man uses to talk to some people and give advice, he adds jokingly.
Interesting facts from the life of L. Blankfein
- In his youth, Lloyd smoked a lot and liked to gamble.
- In 2006, in his first year as chairman of the bank, Blankfein earned $54.4 million and became one of the highest paid executives on Wall Street. It was the first time a newcomer earned more than the head of any fund or bank on Wall Street.
- L. Blankfein actively supported individual politicians. He financed mostly candidates of the US Democratic Party. In 2007, he spent a lot of money on Hillary Clinton’s campaign. Goldman employees and their relatives donated almost $1,000,000 to Barack Obama’s presidential campaign.
- Blankfein is a frequent visitor to the White House, having visited it 14 times by 2013 alone.
- In 2011, Lloyd Blankfein was included in the list of the most influential people in the world, ranking 43rd.
- In 2015, the banker was diagnosed with lymphoma, which he successfully got rid of after a course of chemotherapy in 2016.
- There are unofficial reports that Blankfein received an offer from Barack Obama to join the government.
- Lloyd Blankfein is actively involved in charitable activities and supports small businesses with grants.
Read the story about a young entrepreneur who founded his own successful company at the age of 17.