Goldman Sachs to review its standards

Image caption,
Mr Blankfein himself is being sued by shareholders

Goldman Sachs chief Lloyd Blankfein has said that the bank is creating a business standards committee.

The move comes in the wake of a civil fraud suit that the bank is facing in the US and reports that it is also under criminal investigation.

Goldman has denied all accusations of wrongdoing.

Addressing the firm's annual shareholder meeting, Lloyd Blankfein called for Goldman to undertake a "rigorous self-examination".

"There is no bigger priority for our board of directors and management than to undertake a comprehensive review of all of our business practices," Mr Blankfein said.

Last month, the US financial regulator, the Securities and Exchange Commission (SEC), announced that it was bringing civil charges against the bank for defrauding investors.

It alleged that Goldman failed to disclose that a firm advising it on a product was betting it would decline in value.

The Financial Services Authority in the UK has also said it is investigating Goldman.

Mr Blankfein himself is being sued by shareholders in relation to the fraud allegations.

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