JSM Financial: Goldman Sachs chief says his board is behind him.

April 28, 2010 - PRLog -- Chief executive of beleaguered New York investment bank Goldman Sachs, Lloyd Blankfein has said in a recent interview that he retains the support of the board and the support from clients since the U.S. Securities and Exchange Commission (SEC) accused the firm of fraud earlier, JSM Financial believes.

After facing  over three hours of examination before the U.S. Senate’s permanent investigations subcommittee Blankfein maintained his position that the company had done nothing wrong when it sold an exotic mortgage derivative, known as the Abacus CDO, which is known to have cost its investors $1 billion when the housing market collapsed.  

"Synthetic CDOs allowed buyers and sellers to be able to take the kind of positions they wanted in the housing market. It wasn't a casino," JSM Financial understands he said."These were highly sophisticated parties, some of the most sophisticated in the world."

He went on to defend the concept of synthetic CDOs saying that they enabled investors to diversify or hedge their exposure to housing markets efficiently and speedily.

"These were professional investors who sought the risk and attained the risk they wanted in the market," JSM Financial believes he added.

Blankfein did however shoulder some blame for the banks role in the broader financial crisis saying, “I think that financial institutions let the public down and we are a very important, influential financial institution, and so we bear our share."

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