Lloyd Blankfein knows that people are wondering if his bank, Goldman Sachs, will get pulled into the China princelings investigations. CEO Blankfein said Friday that he hasn’t seen anything that looks like a bribe-for-hiring at his bank.
MarketWatch reports that while speaking to CNBC at the World Economic Forum in Davos, Switzerland, Blankfein was asked about the investigations, where authorities are examining whether big banks hired the children of Chinese elite, in exchange for getting business.
'Have you had Chinese CEOs or other CEOs that say, ‘Hire my kid and if you hire my kid, you get the job’ ?' asked reporter Andrew Ross Sorkin.
'I say yes to the first part but no to the second part,' Blankfein replied. 'Not China specifically. I’ve had people say, ‘My kid is in such-and-such a school, really would like a job in finance. He really would like a job at Goldman Sachs.' Just because he is not thinking it that way, I’m thinking about how it could look'.
J.P. Morgan has been the bank most in the spotlight for allegedly problematic hiring, but other banks are expected to be pulled into investigations. The government is involved because if Chinese government officials are involved, then the hirings may have been in violation of anti-bribery laws.
Blankfein said that Goldman Sachs has 'a lot of processes to vet these things'.
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