Goldman Sachs to Change Its Ways
Announces change to policies for institutional investors
By Kevin Spak,  Newser Staff
Posted May 3, 2010 12:05 PM CDT
Lloyd Blankfein testifies before the Senate Subcommittee on Investigations in this file photo.   (AP Photo/Susan Walsh, File)

(Newser) – With federal pressure at an all-time high, Goldman Sachs is planning to change its policies for dealing with institutional clients, a move which could presage an attempt to settle the SEC's fraud suit against it. Goldman would now instruct employees to ensure clients fully understand the risks associated with whatever they're selling, a source tells the Financial Times . Goldman would also tighten standards to ensure only “appropriate clients” bought complex securities.

On Saturday Lloyd Blankfein told the Charlie Rose Show that the company had “a lot of work to do,” promising that this kind of internal review would take place. “We can't exist in the current state that we are in, and we understand that,” he said. “There were some emails where some people were best indifference, and at worst callousness.”