We are sorry, says Goldman
Goldman Sachs chief executive Lloyd Blankfein yesterday apologised for his bank’s participation in the cheap credit binge that fuelled the bubble. “We participated in things that were clearly wrong and have reason to regret,” Blankfein said, speaking at a conference in New York. “We apologise.”
The admission came as Goldman, whose large profits and bonuses have been attacked by some, said it was teaming up with billionaire investor and Goldman shareholder Warren Buffett to launch a $500m (£297.4bn) programme to aid small businesses.
Goldman’s “10,000 Businesses” initiative will contribute $300m to support programmes designed to improve access to capital for small businesses. The initiative will also commit $200m for business and management education programs.
The advisory council for the initiative will included Blankfein, Buffett and Michael Porter of Harvard Business School.
Goldman reported more than $3bn in profits for each of the last two quarters and set aside nearly $17bn over the first three quarters of 2009 to pay employees, just months after it repaid with interest the $10bn it borrowed from taxpayers.