Defaulting banks - where will it stop?

[Jan Klimkowski]

Goldman Sachs boss: 'bankers do God's work'

Lloyd Blankfein, the chairman and chief executive, of Goldman Sachs, has claimed that bankers do "God's work".

By Chris Irvine
Published: 12:51PM GMT 08 Nov 2009

Lloyd Blankfein, chairman and chief executive officer of Goldman Sachs Photo: BLOOMBERG

Mr Blankfein, the son of a Brooklyn postal worker, believes that banks serve a "social purpose" and argues that the return of big profits and bonuses should be welcomed as proof the economy is recovering.

Speaking to The Sunday Times, he argued: "We're very important. We help companies to grow by helping them to raise capital. Companies that grow create wealth. This, in turn, allows people to have jobs that create more growth and more wealth. We have a social purpose."

While he says he understands people are angry at banker's actions, he continued: "Everybody should be happy. Companies are looking to grow again and raise money. That's where we come in. The financial system may have led us into the crisis but it will lead us out."

Goldman Sachs is exempt from President Barack Obama's cap on bonuses because it paid back its £6 billion loan from the US government. As a result the average pay this year for the bank's UK staff will be around £440,000.

Last month, Goldman Sachs said it had performed so well that its pay and bonus pot for the first nine months was up 46 per cent at £10.2 billion. It was reported that they were considering donating in excess of £627 million to charity in an attempt to quell the furore over the likely size of the pot.

Mr Blankfein recently topped Vanity Fair's power players in the information age, for Goldman's ability to weather the economic crisis

http://www.telegraph.co.uk/finance/newsb...-work.html