NEW YORK (Reuters) - Goldman Sachs Group Inc. promised to be more open about how he makes money and put the interests of clients before his own, eager to refute criticism that it more like an a hedge fund Bank.
Goldman, due to report quarterly earnings next week, for the first time will be broke out how much he earns trade in its own name. Other changes designed to avoid conflicts of interest and to ensure that staff are trained to think about the reputation of the company in their daily activities.
"Goldman is on the road of trying to repair his image," said Alan Villal?n, Nuveen Asset Management Analyst in Minneapolis. "This is a step in the right direction, but it is only a step." "What investors really want to know is, what is the power of real earnings of the company to move forward."
The Investment Bank issued a 63 page report Tuesday that details 39 plans for how it will change after years of investor accusations that its financial statements are opaque and complaints from customers about conflicts of interest.
Internal review was launched after Goldman was accused by U.S. securities regulators in creating and selling collateralized debt obligations related to subprime mortgages without informing investors that hedge fund Paulson & Co contributed to choose and bet against the debt.
Apparent ethical conflicts at the Centre de l'Affaire developed nudes in a series of emails sent by Goldman Sachs bond trader Fabrice Tourre, who referred to himself as "fabulous Fab" and referred to certain trades, it was created as "monstrosities."
Goldman was accepted in July to pay $ 550 million to settle the lawsuit filed by the Securities and Exchange Commission, one of the largest U.S. from U.S. credit and housing crises. Tourre was the only person prosecuted the case. The charges against him are still pending.
For the settlement of Goldman sec in July 2010, the Investment Bank agreed to require two internal committees review the mortgage bond deals marketing documents describe the facts necessary for investors to ensure.
Goldman report also follows the adoption of a radical financial regulatory reform bill last summer, in part, seeking to restrict the ability of large Wall Street firms to Paris with their own capital.
The report, which recommended the creation of at least three internal committees, mainly focuses on communication and control, and some recommendations for how Goldman will change the way it does business on the day the day.
He says nothing, for example, to replace the Chief Executive Lloyd Blankfein, widely criticized for his answer in pursuit of the SEC and the allegations that the activities of the Bank was fraught with conflicts of interest which were not always disclosed to customers.
Yet, the report is emblematic of a ton more humble a firm lambasted by critics for arrogance long. Blankfein told a Senate hearing last April that Goldman was experiencing a "soul big search" of the SEC complaint and other allegations.
Goldman shares little changed in trading, earned 19 cents to $169.95 and underperforming a large increase in financial stocks. Actions have gradually recovered from a steep drop following the disclosure of the combination of the SEC last April, about 6% up.
142 Years firm said it would begin reports more details on knowing trading income is to facilitate customer transactions or to invest in its own name. The change comes in response to widespread criticism that the Bank does not adequately disclose how it makes money.
"People have asked for details of Goldman for a long time." "Black boxes are terrific when revenues are going up, but once things turn sour, investors get aggravated that they can't learn," said Marshall Front, President of Front Barnett Associates in Chicago, which has no Goldman shares.
Goldman Sachs earned a record of 13,39 billion in 2009. Results of the Bank have been a rollercoaster in the past five years, Trek passing an eye-popping $ 11.6 billion in 2007 before abandonment 2.32 billion in 2008, only reaching a record level next year.
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Goldman 2010 results are being down in 2009. the Bank received only $ 5.49 billion in the first nine months of the year. The Bank is scheduled to report results for the fourth quarter, January 19, in his new disclosure framework.
Goldman said that it would establish a Committee to ensure that customers are treated fairly, another to consider each potential new business activity and a third to examine the suitability of products for investors.
"We are in many capacities, including as Advisor, fiduciary, market maker and the insurer," said the report in one of several references to any potential conflicts of interest. "We must be clear to ourselves and our customers as to the capacity in which we act and responsibilities, we have provided.
Said Goldman strengthen the company's reputation is a key objective of the report - famous described by an article in Rolling Stone magazine as "a great vampire of the abyss... jamming funnel of his blood in everything what feels like money."
Michael Holland, who oversees the $ 4 billion in assets as President of Holland & Co, called planned Goldman changes "even more smart move in a series of things they've done to repair the damage" their reputations during and after the financial crisis.
For internal review, Goldman spoke to more than 200 customers worldwide, including some criticized the company to focus on its own interests and pay short-term at their own expense.
Said, partly in response, Goldman, it will seek to develop increased weight "reputation risk management", as well as focusing on "service and customer relationships with customers."
(Additional by Maria Aspan written by Christian Plumb; editing by John Wallace)
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