Blankfein Sees Parallels to 1994 Interest-Rate Increases
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Goldman Sachs Group Inc. Chief Executive Officer Lloyd C. Blankfein warned that the interest-rate environment has parallels to 1994, when a sudden and sharp increase in rates caught many investors off-guard.
“I worry now -- I look out of the corner of my eye to the ‘94 period,’’ Blankfein, 58, said today at a conference in Washington sponsored by the Investment Company Institute. He recalled how investors got used to low interest rates and were shocked by losses when borrowing costs rose.