Goldman Sachs Group Inc WSJ 1-10-11

Goldman Sachs Group Inc WSJ 1-10-11 - Goldman Sachs Group...

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Goldman Sachs Group Inc., seeking to beat back criticism that it abused its muscle and trading savvy to put its own interests ahead of clients, agreed to release details on how and where the Wall Street giant makes its money. AFP/Getty Images Goldman Sachs CEO Lloyd Blankfein In a 63-page report set to be released Tuesday, Goldman says that for the first time in its 142-year-history, it will start disclosing how much revenue comes from the firm's own trading and investing, according to a copy of the report reviewed by The Wall Street Journal. The reporting change, which comes after an eight-month review and a bruising lawsuit against the firm by the Securities and Exchange Commission, will begin with Goldman's fourth-quarter results later this month. The firm's power and motives have been repeatedly questioned since the financial crisis erupted, in part because Goldman weathered the mess far better than most banks and securities firms. But the 39 changes set to be adopted by Goldman don't include an overhaul of its operations or management, as some of the company's harshest critics demanded. For example, some corporate-governance experts have said Goldman Chairman and Chief Executive Lloyd C. Blankfein should step aside or at least give up his post as chairman. Mr. Blankfein's future isn't addressed in the report, but the company has said investors and clients support him. Other changes include procedures to make sure the firm doesn't take advantage of clients, even accidentally. Thousands of Goldman clients will be put into a "matrix" that defines each client's level of "sophistication." That process will determine which types of transactions are most "suitable" for the client. Those wanting to breach those limits will need special approval from Goldman. The firm also moved to reduce some of the power of its trading desks, which became the
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Goldman Sachs Group Inc WSJ 1-10-11 - Goldman Sachs Group...

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