BETA
This is a BETA experience. You may opt-out by clicking here

More From Forbes

Edit Story

Goldman Sachs' Blankfein: 'We've Gotten Used To Surprises' Like Greg Smith's Op-Ed

This article is more than 10 years old.

(Image credit: AFP via @daylife)

Goldman Sachs Chairman and Chief Executive Lloyd Blankfein did a rare media tour Wednesday morning, giving live television interviews to CNBC and Bloomberg TV. In the first interview, with CNBC's Gary Kaminsky, Blankfein discussed the reaction to Greg Smith's op-ed in the New York Times last month, which accused the firm of mistreating clients and some employees of using the term "muppets" to refer to clients.

"If you'll excuse the oxymoron, we've gotten used to surprises," Blankfein said when Kaminsky asked if he was taken aback by Smith's very public rebuke of the firm, before quickly noting the support Goldman has received from clients since the letter was published.

Blankfein also addressed the Goldman Sachs board, which has come under intense scrutiny of late, over everything from his own joint role as chairman and CEO to the presence of director James Johnson, who has drawn the ire of at least one shareholder due to his former role running Fannie Mae during the housing bubble.

In terms of succession, Blankfein said Goldman has emergency succession plans in place -- what he called the "if you get hit by a bus plan" -- but also discussed the firms deep bench and the number of other firms that count Goldman alums as their leaders.

"I have no plans to leave," Blankfein said regarding reports that he may step down as CEO sooner rather than later, adding that he has seen headlines but doesn't know where they are coming from. He, along with JPMorgan Chase's Jamie Dimon, is one of the few CEOs of major U.S. financial firms whose tenure predates the financial crisis, a period that ultimately prompted changes at the top of firms like Merrill Lynch, Citigroup, Bank of America and Morgan Stanley, among others.

As for the firm itself, Blankfein said Goldman must look to expand overseas in the years ahead as it deals with competition, regulation and the slower-growing U.S. economy. "Our industry is hugely important to the world, if we finance growth," he said. "The markets are always evolving, and regulation has to evolve with it," he continued. While admitting to not liking every piece of regulatory reform that has been invoked since the crisis, Blankfein said there is no bigger beneficiary from better regulations than a firm that does things right.

Clearly he believes Goldman is still part of the group despite settlements like the $550 million it paid in 2010 to settle charges about improper disclosures on a mortgage security portfolio known as Abacus, charges it neither admitted nor denied. Blankfein said the poor performance and risk management of competitors was "the biggest threat to Goldman Sachs."

Shares of Goldman Sachs were down 0.7% Wednesday.

Watch The CNBC interview here.

Update: Following his CNBC interview, Blankfein hit Bloomberg TV, where he said one of the biggest risks facing the market, policymakers and companies is "that things go right." Watch that video here.