Goldman Sachs Group (GS), under heavy criticism in Washington for allocating over $16 billion in bonuses in the first nine months of this year, is preparing to team up with Warren Buffett’s Berkshire Hathaway (BRK.A), — the largest shareholder in New York-based bank — to provide assistance to small businesses.
According to Bloomberg, Goldman has notified President Obama’s administration already, and could announce the alliance as early as today. The action, which is a charitable effort from Goldman and Buffett, is designed to offer assistance — ranging from counseling to obtaining funding — to 10,000 U.S. small businesses.
The effort on the part of Goldman Sachs is in all probability designed to also dispel criticism from the main street who perceives the famed investment bank as the greedy face of a financial industry whose excessive risk-taking fueled the credit crisis. Whether Goldman will be successful in its ‘PR’ campaign remains to be seen.
The initiative, notes Bloomberg, coincides with one of the Obama administration’s top economic priorities: spurring hiring at small companies.