Lloyd Blankfein on Prospects for Economic Recovery

Published on October 28, 2009

In the Fortune magazine interview shown below, Goldman Sachs CEO Lloyd Blankfein provides his insights on the overall economy, prospects for job growth, and the controversy surrounding his firm’s compensation practices.

Putting aside questions regarding executive pay and bonus structures, investors are advised to listen carefully to Mr. Blankfein’s views particularly given Warren Buffett’s strong endorsement of the firm and its leadership.  Berkshire Hathaway invested $5 billion in Goldman Sachs at the height of the financial crisis last year.  For some background on Berkshire’s investment, please see this article from earlier this year.

For an excellent history of Goldman Sachs, I highly recommend The Partnership:  The Making of Goldman Sachs which I read earlier this year.  My main impression from the book was that perhaps the partnership model is a more sustainable and logical choice for investment banks particularly when it comes to the level of risk taken with the firm’s capital.

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Disclosure:  The author owns shares of Berkshire Hathaway.

Lloyd Blankfein on Prospects for Economic Recovery