Goldman Sachs to widen financial disclosure

12 January 2011

Goldman Sachs is to broaden disclosure practices surrounding its financial results in bid to improve the perception of the bank by both the public and its shareholders.

According to a report by the Business Standards Committee, set up by the bank to review how it works, the change is one of 39 that Goldman will make to processes surrounding client services, transparency, disclosure and professional development.

The commission undertook the eight month investigation which led to the 63-page report - it followed allegations of fraud levelled at the bank by the Securities and Exchange Commission after it was accused of misleading investors over its role in the sale of securities as part of the ABACUS investment product.

In the document, Goldman said: “The firm’s balance sheet disclosure provides another opportunity to describe more clearly the nature of the firm’s business activities and the importance of the client franchise and client facilitation.”

The bank admitted that the financial crisis had been a period of challenge in which it needed to undertake a “thorough self-assessment”.

Goldman agreed to pay $550 million to the US regulator to settle allegations made against it in July of last year.

By Jim Ottewill

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