Blankfein has held the reins at Goldman since 2006, a time during which the business has stagnated and is continuing to lose ground to its peers, said Dick Bove, vice president of equity research at Rafferty Capital Markets.
"How many companies keep a CEO around for that long when there's been a classic mistake in the business model which has resulted in a loss of market share and no increase in earnings and no increase in the stock price?" Bove said in a phone interview. "There's something wrong with the structure."
Though Goldman easily topped consensus estimates on for profit and sales — $3.95 a share and $7.89 billion respectively — traders instead focused on a 17 percent decline in trading. That number included a 40 percent plunge in the vital fixed income, commodities and currencies business.
As a result, shares were off 2.4 percent in afternoon trading.
A few months ago Bove cut his rating on Goldman so "hold" from "buy." He said he is not planning any further downgrades but believes the bank needs "a shakeup."
"The stock price ... is right where it was 10 years ago," he said. "The company's desire to wait for recovery in its core business and therefore make no major changes has been a critical error. I quite frankly simply don't understand how they're getting away with it."
[Goldman's share price actually is up about 30 percent since 10 years ago to the day, to be precise, but has flatlined since peaking shortly after, in September 2007.]
This is not the first time Bove has called for Blankfein to be removed; in 2011 he demanded the CEO's head following a settlement the firm made with regulators, then switched a month later, saying the firm had been done "a terrible wrong."
"Their reputation remains extremely high. They have extremely qualified people," Bove said Tuesday. "But the level of inertia in that company is staggering relative to anyone else in the financial services industry."