Gus Levy
Encyclopedia
Gustave "Gus" Levy was senior partner of Goldman Sachs
from 1969 until his death in 1976, succeeding the renowned Sidney Weinberg
.
Levy was born in 1910 in New Orleans, one of three children of Sigmund and Bella Levy. Levy briefly attended Tulane University
before dropping out, moving to New York City, working various job in the financial sector, and then joining Goldman Sachs
in 1933 to head the then one-man trading department for a salary of $27.50 a week. He remained at Goldman Sachs for rest of his career and rose to senior partner in 1969. Levy was known for his tremendous energy, short temper, intelligence, and generosity.
Between 1933 and 1969, Levy headed Goldman Sachs' trading department and pioneered new trading strategies such as block trading
. Being from the trading department, he was naturally not banking-oriented. Upon retiring in 1969, the highly banking-oriented Sidney Weinberg
had some reservations about leaving Levy in charge but ultimately decided to appoint Levy as senior partner but also introduced the eight-man "management committee" system (filled with seven older, experienced senior banking partners) to supervise Levy.
During Levy’s reign as senior partner from 1969–76, Goldman Sachs experienced tremendous growth, arguably more so than during Weinberg's reign, but also encountered some major controversies, such as the Penn Central bankruptcy commercial paper scandal, which tarnished the firm's reputation for several years to follow and cost the firm's partners tens of millions in litigation and legal settlements.
Levy was senior partner until he had a major stroke
in October 1976 in which he fell into a coma
and never recovered. He died in Mount Sinai Hospital
at the age of 66. Levy never publicly declared a successor, but it was presumed that John Whitehead
and John Weinberg
(son of Sidney Weinberg) were to be his successors. The "two Johns" began their reign as co-senior partners in 1976.
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
from 1969 until his death in 1976, succeeding the renowned Sidney Weinberg
Sidney Weinberg
Sidney James Weinberg was a long-time leader of the Wall Street firm Goldman Sachs, nicknamed “Mr. Wall Street” by The New York Times and "director's director" by Fortune magazine...
.
Levy was born in 1910 in New Orleans, one of three children of Sigmund and Bella Levy. Levy briefly attended Tulane University
Tulane University
Tulane University is a private, nonsectarian research university located in New Orleans, Louisiana, United States...
before dropping out, moving to New York City, working various job in the financial sector, and then joining Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
in 1933 to head the then one-man trading department for a salary of $27.50 a week. He remained at Goldman Sachs for rest of his career and rose to senior partner in 1969. Levy was known for his tremendous energy, short temper, intelligence, and generosity.
Between 1933 and 1969, Levy headed Goldman Sachs' trading department and pioneered new trading strategies such as block trading
Block trade
A block trade is a permissible, noncompetitive, privately negotiated transaction either at or exceeding an exchange determined minimum threshold quantity of shares, which is executed apart and away from the open outcry or electronic markets...
. Being from the trading department, he was naturally not banking-oriented. Upon retiring in 1969, the highly banking-oriented Sidney Weinberg
Sidney Weinberg
Sidney James Weinberg was a long-time leader of the Wall Street firm Goldman Sachs, nicknamed “Mr. Wall Street” by The New York Times and "director's director" by Fortune magazine...
had some reservations about leaving Levy in charge but ultimately decided to appoint Levy as senior partner but also introduced the eight-man "management committee" system (filled with seven older, experienced senior banking partners) to supervise Levy.
During Levy’s reign as senior partner from 1969–76, Goldman Sachs experienced tremendous growth, arguably more so than during Weinberg's reign, but also encountered some major controversies, such as the Penn Central bankruptcy commercial paper scandal, which tarnished the firm's reputation for several years to follow and cost the firm's partners tens of millions in litigation and legal settlements.
Levy was senior partner until he had a major stroke
Stroke
A stroke, previously known medically as a cerebrovascular accident , is the rapidly developing loss of brain function due to disturbance in the blood supply to the brain. This can be due to ischemia caused by blockage , or a hemorrhage...
in October 1976 in which he fell into a coma
Coma
In medicine, a coma is a state of unconsciousness, lasting more than 6 hours in which a person cannot be awakened, fails to respond normally to painful stimuli, light or sound, lacks a normal sleep-wake cycle and does not initiate voluntary actions. A person in a state of coma is described as...
and never recovered. He died in Mount Sinai Hospital
Mount Sinai Hospital, New York
Mount Sinai Hospital, founded in 1852, is one of the oldest and largest teaching hospitals in the United States. In 2011-2012, Mount Sinai Hospital was ranked as one of America's best hospitals by U.S...
at the age of 66. Levy never publicly declared a successor, but it was presumed that John Whitehead
John C. Whitehead
John Cunningham Whitehead is an American banker and civil servant, currently a board member of the World Trade Center Memorial Foundation and, until his resignation in May 2006, chairman of the Lower Manhattan Development Corporation.-Biography:He was born in Evanston, Illinois...
and John Weinberg
John Weinberg
John Livingston Weinberg was an American banker and businessperson, running Goldman Sachs from 1976 to 1990.- Biography :...
(son of Sidney Weinberg) were to be his successors. The "two Johns" began their reign as co-senior partners in 1976.