Goldman Hosts Shareholder Meeting Amid Civil and Criminal Investigations

Goldman Sachs (GS) held its annual shareholder meeting Friday, at a very delicate time for the firm. The Wall Street investment giant faces a civil suit from the SEC, reports of a criminal investigation by the Department of Justice, and a growing chorus of voices questioning whether it can be trusted.

Calling it a “moment of historical importance” for the firm, Goldman CEO Lloyd Blankfein said he realizes that there is currently a disconnect between how the firm views itself and how the broader public perceives its role and activities in the market.

“Our firm must adhere to the core principles that sustained the firm over the last 140 years,” Blankfein said in prepared remarks at 32 Old Slip, near South Street Seaport.

This year the heat is on Goldman CEO Lloyd Blankfein, as Goldman’s stock price has lost more than 20% of its value since the SEC announced its fraud charges against the firm on April 16.

Well-known shareholder activist Evelyn Davis, also dubbed the ‘queen of the corporate jungle’ for her determination to hold executives accountable, demanded that Blankfein resign his post, saying that he has damaged the firm’s credibility.

FBN: “Evelyn, I have no current plan to step down,” Blankfein told Davis. Goldman Sachs requires a vote of 80% of outstanding shares to take action such as removing a director.

Is worth pointing out that despite GS PPS tumble in recent weeks, the firm has still managed to post quarter after quarter of blistering profits, and managed to survive the financial crisis relatively unscathed.

Blankfein’s opening statement of Goldman Sachs Group Inc.’s annual meeting »

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1 Comment on Goldman Hosts Shareholder Meeting Amid Civil and Criminal Investigations

  1. Blankfein should spend a little time in Jail so that future CEO’s and Chairmans of the boards get the message, investors money is not your money to play with and fleecing people with money making schemes never pays in the end. Those who hold to moral goals tend to win the day when all is said and done. Blankfein and others like you, you have only damaged your credentials and almost created a gigantic mess that could have taken your very freedoms and the rest of America enjoys and trashed them. Your reckless and careless behavior has made a mockery out of yourselves and you deserve every moment of what you are getting!

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