Testimony by Lloyd C. Blankfein
Chairman and CEO, The Goldman Sachs Group, Inc.
Financial Crisis Inquiry Commission
January 13, 2010
Chairman Angelides, Vice Chairman Thomas and Members of the Commission:
We appreciate the invitation to appear before you and to contribute to the Commission’s
work to understand the causes of the financial crisis.
Goldman Sachs and our Business Model
Goldman Sachs is a financial holding company whose principal businesses are
investment banking, market making and investment management. We provide services to a
diverse and significant client base, which is largely institutional and includes corporations,
financial institutions, governments and high net-worth individuals.
Our activities are divided into three general areas:
Our investment banking business provides strategic corporate services, matching the
resources of the firm to specific client needs. This frequently means combining advisory,
financing and co-investment capabilities. We help clients access equity and debt capital
markets in order to grow their businesses, restructure their balance sheets to improve or to
solidify their financial strength and to manage their assets and liabilities. We also assess and
facilitate strategic options for M&A, divestitures and corporate defense activities. Through our
merchant banking activities, we create and manage investment funds consisting of both our own
and our clients’ money in order to invest in growing businesses.
Our market making or securities sales and trading business facilitates customer
transactions for corporations, financial institutions, governments and individuals through market
making and trading of fixed income, equities, currencies, commodities and derivatives products.
As a market maker, we provide the necessary liquidity to help ensure that buyers and sellers
can complete their transactions and markets can function efficiently. In dislocated markets, we
are often required to commit capital to hold client positions