Business

Davos 2013: 'Worst over' says Goldman Sachs's Lloyd Blankfein

  • 25 January 2013
  • From the section Business

Goldman Sachs chief executive Lloyd Blankfein has suggested the worst of the financial crisis is over in an interview with the BBC in Davos.

"I think the moment of crisis is over," he said, speaking to BBC economics editor Stephanie Flanders.

"The worst worrisome problems that everyone talked about last year seem to be off the table."

Mr Blankfein also defended the way the bank paid its staff bonuses after receiving criticism in the UK.

Earlier this month the bank reversed its decision to delay paying staff bonuses in the UK to take advantage of a reduction in tax rates coming into effect in April.

He said the bank had changed its policy in response to the criticism.

"We're a public entity, we live on the good will of the public and so we adapted to what we perceived as criticism," Mr Blankfein said. "We stand by our original idea and we stand by the revision to the plan."

On the current state of the global economy and financial system, Mr Blankfein said there were "a lot of things to be optimistic about".

There were issues of concern that could still "roil the market" in the future, he said, but there were plenty of positive signs suggesting many of the problems relating to the financial crisis were in the process of being resolved.

He said deleveraging was continuing, companies were beginning to make money again, and the housing situation in the US and elsewhere was improving.

Goldman Sachs this month announced net profits of $7.5bn (£4.8bn) for 2012, results that analysts said showed that the bank was back on track following the financial crisis.

Around the BBC