Our Bad

Blankfein: Banks Lost Control

The head of Goldman Sachs, Lloyd Blankfein, said in a speech Wednesday that banks lost control of certain products and lacked important measuring tools in the run-up to the financial crisis. He also said that the outrage over Wall Street compensation was "understandable and appropriate." One senior European banker said that Blankfein's talk, which was given at a banking conference in Germany, was aimed squarely at the local audience, even while it is certain to be heard back home: “Blankfein was clearly trying to placate the locals and show some kind of contrition. But I agree with what he said—these were silly bets and they were absolutely useless.” In recent months, criticism against the success of Goldman Sachs in the face of the economy's downturn has been on the rise.