Goldman Sachs Announces Details of Business Standards Committee
New York, NY, May 14, 2010 -- The Goldman Sachs Group, Inc. (NYSE: GS) today announced additional information on the Business Standards Committee.
A week ago, at the Annual Meeting of Shareholders, Goldman Sachs announced the creation of the Business Standards Committee. The Business Standards Committee will undertake a review of our business standards and make recommendations to the Board of Directors and senior management to reinforce the firm’s client focus and improve upon the transparency of our activities.
“We recognize that there is a disconnect between how we view the firm and how the broader public perceives our roles and activities,” said Lloyd C. Blankfein, Chairman and CEO of The Goldman Sachs Group, Inc. “This initiative is consistent with our obligation to ensure that our standards across our business activities are of the highest quality and represent the benchmark for our industry globally.”
The Business Standards Committee will establish working groups to focus on the following five areas:
Client Relationships and Responsibilities. This group will re-examine and clarify the responsibilities we have to our clients and the different roles we may play to accomplish our clients’ objectives.
Conflict Management. This group will review how the firm identifies and manages conflicts across our business activities and how we share information with our clients.
Disclosure and Transparency of Firmwide Activities. This group will examine how the firm’s public disclosure and financial reporting can better articulate the nature of our activities and how they relate to our performance and our mission to serve clients and the public interest.
Structured Products and Suitability. This group will consider how to address various issues surrounding complex products, including the suitability of products for different types of clients.
Education, Training and Business Ethics. The focus of this group will be on how best to strengthen our training and professional development to reinforce the importance of personal accountability, professional ethics and clear and effective communication.
The Business Standards Committee will actively seek input from external constituencies and experts, including clients, shareholders, regulators, academics and public policy groups. A series of discussions and meetings will be held with these groups so the Committee hears and benefits from independent views, advice and judgment. These interactions will represent a core component of the Committee’s work.
The Committee will issue a final report shortly after the Board of Directors’ meeting in mid-December. The report will be made public.
Business Standards Committee Members
The Co-Chairs of the Business Standards Committee will be E. Gerald Corrigan, Chairman of Goldman Sachs Bank USA, and J. Michael Evans, Vice Chairman of Goldman Sachs and Chairman of Goldman Sachs Asia. Members of the Committee will include:
Edith W. Cooper, Global Head of the Human Capital Management Division
Michael Daffey, Global Head of Equities Sales and Securities Distribution Europe
Richard J. Gnodde, Co-CEO of Goldman Sachs International
David B. Heller, Global Co-Head of the Securities Division
Kevin W. Kennedy, Head of Goldman Sachs Latin America
Arthur Levitt, Former Chairman of the U.S. Securities and Exchange Commission
Gwen R. Libstag, Head of Firmwide Business Selection and Conflicts Clearance
Timothy J. O’Neill, Co-Head of the Investment Management Division
Harvey M. Schwartz, Global Co-Head of the Securities Division
Sarah E. Smith, Controller and Chief Accounting Officer
David M. Solomon, Co-Head of the Investment Banking Division
John S. Weinberg, Vice Chairman and Co-Head of the Investment Banking Division
Matthew Westerman, Global Head of Equity Capital Markets
Jeffrey W. Schroeder, Goldman Sachs Chief Administrative Officer, will act as the Committee’s Chief Operating Officer and David J. Greenwald, Goldman Sachs International General Counsel and Deputy General Counsel, will be Of Counsel to the Committee.
Business Standards Committee Co-Chairs
E. Gerald Corrigan
Jerry Corrigan is chairman of Goldman Sachs Bank USA. He is co-chair of the Firmwide Risk Management Committee, vice chair of the Firmwide Business Practices Committee and a member of the Firmwide Commitments Committee. Since joining the firm in 1994, Jerry has served as chair or co-chair of a number of firmwide and industry-wide groups dealing with a range of issues having major implications for financial market efficiency and stability. In addition, he provides a wide range of strategic advice to the firm and its clients.
Jerry ended a 25-year career with the Federal Reserve System when he stepped down from his position as president and chief executive officer of the Federal Reserve Bank of New York in 1993. He had been chief executive officer of the New York Federal Reserve and vice chairman of the Federal Open Market Committee since 1984. He has also served as president of the Federal Reserve Bank of Minneapolis and special assistant to Federal Reserve chairman Paul A. Volcker.
J. Michael Evans
Michael is vice chairman of Goldman Sachs and chairman of Goldman Sachs Asia. He is also a member of the firm’s Management Committee. Michael joined Goldman Sachs in 1993 in Equity Capital Markets in London.
Michael ran the firm’s European Equity Capital Markets business from 1993 to 1999 before becoming the global head of the Equity Capital Markets business in 1999. In 2001, he became co-head of the Equities Division, and at the end of 2003, he became one of four global co-heads of the FICC and Equities Divisions. In 2004, Michael became chairman of Goldman Sachs Asia in addition to continuing his Securities business responsibilities. In 2008, he was named a vice chairman of the firm.
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.
Lucas van Praag