Goldman Sachs chief pledges core review

GOLDMAN Sachs chief executive Lloyd Blankfein called for a "rigorous self-examination" at the besieged bank's annual shareholder meeting yesterday.

"There is no bigger priority for our board of directors and management than to undertake a comprehensive review of all of our business practices," Blankfein told shareholders at the meeting held close to its New York headquarters.

"Our firm must review our core principles," he added.

He noted there had been a "disconnect" between how the company views itself and how outsiders view the firm.

Goldman Sachs, Wall Street's dominant investment bank, said it will establish a new business standards committee to report suggestions to management on standards and transparency.

The committee, answering to the bank's board of directors, will review all its services and products.

It is being set up in the wake of the civil fraud suit launched by the Securities and Exchange Commission over allegations it failed to disclose the full facts about one of its debt products. The bank also faces a criminal probe by the Justice department and shareholder lawsuits.