Goldman Sachs can cut pay dramatically and maintain staff when times are tough because it pays so well in good times, Chief Executive Lloyd Blankfein said on Tuesday.
'Our people know the contract goes both ways', Blankfein said at a Bank of America-Merrill Lynch financial services conference in New York.
Reuters reports that the bank has moved more of its staff to low-cost locations like Bangalore, India; Salt Lake City and Dallas, where 25% of its staffers are now located, compared with 10% in 2007.
The news agency also reports that Blankfein also said on Tuesday that he regrets collateralized debt obligation trades Goldman made in the run-up to the financial crisis that later caused a firestorm of public criticism.
While the trades were profitable at the time - to the tune of $13bn, according to a congressional committee - Goldman suffered tremendous reputational fallout in the years after the crisis.
'I wish the organization hadn't done complex CDOs circa '06 and '07'.
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