We’re on the call, as Lloyd Blankfein talks to private wealth management clients.
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Thank you for your time and your support of Goldman Sachs – and he’s done.
1:34: This is Blankfein’s first time talking on a conference call like this. He says he’ll do it again
1:33: The people that you are and the money that you have are our business
1:32: We are a private wealth firm, we’ve picked our place very carefully.
1:29: Any significant consequences for the client business? Blankfein: nope
1:28: Anything that raises the rigour and integrity of the firm suits us. The regs are focused on the right things. There are steps that are designed to make sure that what we saw doesn’t happen again.
1:28: GS & Financial Reform: We will be among the biggest beneficiaries of reform
1:26: We want to investigate things that we can do better, should do better and we want to be a leader in integrity.
We want people to be bragging that they have their accounts at Goldman Sachs, which by the way – is the way it has been my entire career. I can’t bear the thought that that wouldn’t be the case so we’re going to make sure that it’s always the case.
1:25: We wince when we hear anything having to do with integrity but clearly, there are questions about our integrity – how are you addressing these concerns?
We’re working on how we communicate and we’re going to examine what we’re doing right or wrong on a microscopic level.
1:24: How can clients be confident that you’re still serving them?
We always have been. The circumstances have made us re-focus our efforts. We don’t exist absent our clients, so we’re re-doubling our efforts.
1:23: If you represent one, you represent one and you can’t represent two …
1:22: If you look at our market shares in this, I think we’ve done a pretty good job
1:20: Congress and the media have raised questions about the inherent conflicts in the business so please talk about that Lloyd:
We perform a middle-man function in the market. So think of a company trying to raise equity. Of course we’ll advise them on timing, etc. We have another part that deals with potential investors who are looking for opportunities in the market and they’ll decide if that’s a good investment.
1:19: It would never be acceptable to sell a product designed to fail to Private WM clients – or anyone, ever
1:18: But we’re validated as a good liquidity maker, too and that’s in the market making function and with clients
1:17: In the testimony, I was talking about our market-making function
1:16: On ABACUS, if we were engaged with them in a advisory role, of course we would have told them our thoughts. But we were a market-making function
1:14: Our market-making function is still very much a client business. But we get clients every day because we are a good client market-maker too.
1:12: “Our clients come first across every business we do. It’s just different.”
“In our advisory business, of course we’re telling clients ‘this is what we would do, this is what we think you should do.'”
“If you turn to a market-making business, we are the other side of what our clients want to do. We are serving our clients but we’re not telling them what to do.”
1:10: He says Private Wealth management is very important for Goldman.
“It binds us to people who are business people, entrepreneurs, who may be the first generation of wealth creators in their families.”
“It’s the connectivity that we have with important people.”
“I frequently talk to CEOs about their businesses. Many are clients are Goldman. You can’t avoid talking about their business and that’s personal and that’s why I’ve always had a closeness to this business.”
1:09: If there is a silver lining its that he’s reaching out and he wishes he’s done it earlier. He wishes he’s done calls like this before. The silver lining is getting these relationships right.
1:07: He says they’re all going to be introspective now
Goldman put themselves in a place where people are questioning their values, they want to help that.
Lloyd is talking! He says he understands the how everyone must be tired of hearing Goldman’s name in the media negatively all the time