Goldman Sachs is considering strengthening internal rules, including on disclosing bankers’ personal financial holdings to clients, after being criticized in a recent court opinion because of a dealmaker’s potential conflict of interest in a large transaction.

Goldman’s review–and similar initiatives by some of its rivals–could provide companies with greater transparency on the financial interests of the bankers they hire to advise on takeovers.  Read more.

This follows the recent developments:

Goldman Sachs was hit by a £1.3 billion backlash following a devastating attack on it as ‘morally bankrupt’ by one of its senior executives.

The global investment bank’s share price fell after Greg Smith said Goldman staff referred to clients as ‘muppets’ and ripped them off for as much money as possible.

Yesterday critics including Business Secretary Vince Cable weighed in on the controversy sparked by London-based Mr Smith.

Mr Cable said at a British Chambers of Commerce conference in London: ‘This  letter has inflicted severe reputational damage on Goldman Sachs and they will pay the price for it.’

Mr Smith, announcing his resignation in an open letter in the New York Times on Wednesday, blamed two of the bank’s top bosses for the ‘decline in the firm’s moral fibre’.

He claimed that Goldman’s chief executive Lloyd Blankfein and its president Gary Cohn ‘lost hold of the firm’s culture on their watch’.

Shares in the bank fell 3.4 per cent in New York trading as the shockwaves hit, although it still left the company worth an estimated £36billion.

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