"I think the financial institutions let the public down and we are a very influential financial institution, so we bear our share, " Lloyd Blankfein, the CEO of Goldman Sachs , told David Faber on Tuesday.
Blankfein disputed claims made during Tuesday's Senate hearings that Goldman ran the synthetic CDO market like a "casino." He said synthetic CDOs allowed people to "efficiently and quickly get the kind of diversification and risk they wanted on the buy side or on the sell side."
So does the Goldman CEO think there will be ethical issues raised that will hurt the company going forward?
Blankfein doesn't think so, adding, people will "need instruments that will allow them to hedge their investments or else capital won't flow in."
And in regards to financial reform, Blankfein said, "issues were raised. And in connection with regulation reform people will be looking at the derivatives markets."
Lastly, when asked what Goldman's responsibility is, Blankfein responded by saying, "we act in the best interest of our clients."
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