Goldman Sachs Details Revenue in Bid to Deflect Criticism

Goldman Sachs Group (GS) published details on how it earns its revenue as it works to deflect criticism that it puts its own profits ahead of client interests.

The 63-page report, released today, breaks down its revenue to show how much comes from its own trading and investing, The Wall Street Journal said.

The bank faced intense criticism from the public in 2010. The bank also had to deal with a lawsuit from the SEC, which charged that it misled investors who bought into a mortgage security that it had been designed for another client to bet against.

Goldman eventually settled the SEC suit for $550 million.

"Our history of good performance through the crisis became a liability as people wondered how we performed so well and whether we'd received favorable treatment from well-placed alumni," CEO Lloyd Blankfein said Monday, according to The Wall Street Journal. "This was not only a poor place to be, it was a dangerous place to be."

The report details new rules to prevent conflicts of interest. Traders and brokers will now be barred for 30 days from "expressing a view" about a deal or client for which Goldman is the underwriter.

Not everyone was convinced that Goldman's steps were meaningful.

"The question is, are they changing the culture, or is it a forum to respond to public concerns? If there is a substantive change, that's great," said Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware.

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If Paulson didn't change the type of firm GS was, they would be out of business today. But somebody should be in jail. They sold these securities and then bet that they would fail, which they did. At the very least, why would any firm deal with this company, only to be set up again like a pidgeon, to lose again? Greed is good, only some of the time.

January 11 2011 at 10:32 AM Report abuse +2 rate up rate down Reply

Get out of the stock market, before it tanks. You are crazy to think you can make money in such a manipulated market. For every penny that the Goldman Sachs and J P Morgans have made..............there has been a related amount that has been lost by ordinary investors. The profits they have made do not come out of thin air............their profits have been our losses!

January 11 2011 at 10:24 AM Report abuse +2 rate up rate down Reply

if GS needs another bailout, US taxpayers will do it whether they want to or not.

January 11 2011 at 9:29 AM Report abuse -1 rate up rate down Reply