Blank(fein) on Leverage

BLANKFEIN ON LEVERAGE: Goldman Sachs CEO Lloyd Blankfein acknowledged he didn’t understand leverage as a “meaningful metric” to gauge the financial condition of his company, according to a paraphrased June 2010 interview. “Until recently, I wasn’t even conscious of what our leverage was, in the sense of, the amount of our gross assets versus our equity,” he said. “I always thought of it in terms of risk of the way our balance sheet was run…We had no decision to be more leveraged or more risky.” [Link]

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