Daily Archives: March 10, 2010

Tony Tassell

Sooner or later the law of averages has to apply to how Goldman Sachs deals with its conflicts of interest. More than most of its peers, Goldman has embraced a world where the lines between client and competitor often seem to be blurred.

But controversies such as the flurry of criticism over its dealings with Greece expose a vulnerability of the model.

In the new Goldman world, where trading has become the dominant revenue force, a client can be advised by the bank on a deal or on a trade. But at other times, the same client could find Goldman’s private equity arm bidding against it for an asset or it could find itself on the losing side of a trade with the bank.