Blankfein Says Goldman Has Controls for Hiring of Connected Kids

Goldman Sachs Group Inc. (GS) has controls in place to avoid conflicts of interest when clients request jobs for their children, Chief Executive Officer Lloyd C. Blankfein said.

“I’ve had people who say, ‘Look, my kid’s in the blankety-blank business school in the United States, and really would like a job in finance, really would like a job at Goldman Sachs,’” Blankfein, 59, said today in a CNBC interview at the World Economic Forum in Davos, Switzerland. “I’m thinking about how it could look, and so we have a lot of processes to vet these things.”

When asked if he had seen any hiring that appeared to be a bribe, Blankfein said, “Not firsthand.” U.S. regulators are looking at hiring practices in China amid an investigation into JPMorgan Chase & Co.

Blankfein joined Morgan Stanley CEO James Gorman in pointing out that many talented employees happen to be children of powerful leaders in China and in other parts of the world.

“If you precluded yourself from hiring any kid that was affiliated with somebody or whose parent was an important official or important industrialist or executive, you wouldn’t have very many people left,” Blankfein said. “Who do you think the kids are that are multicultural and filling Harvard Business School?”

Photographer: Simon Dawson/Bloomberg

Goldman Sachs Group Inc. Chief Executive Officer Lloyd C. Blankfein pauses during a Bloomberg Television interview on day three of the World Economic Forum (WEF) in Davos. Close

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Photographer: Simon Dawson/Bloomberg

Goldman Sachs Group Inc. Chief Executive Officer Lloyd C. Blankfein pauses during a Bloomberg Television interview on day three of the World Economic Forum (WEF) in Davos.

To contact the reporter on this story: Michael J. Moore in New York at mmoore55@bloomberg.net

To contact the editor responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net

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