UPDATE 1-Goldman CEO says has board’s support-CNBC

(For more on the Goldman fraud charges, click [ID:nLDE63K10N])

* Blankfein says banks let the public down – CNBC

* CEO Blankfein says board, clients have been supportive

* CEO says firm fulfilled its duties to trading partners

* Bank bears share of responsibility for crisis
(Updates with detail, quotes, background)

NEW YORK, April 27 (BestGrowthStock) – Goldman Sachs Group Inc
(GS.N: ) Chief Executive Lloyd Blankfein told CNBC on Tuesday he
retains the support of the board as well as support from
clients since the SEC accused the powerful but embattled bank
of fraud earlier this month.

Blankfein, after testifying for more than three hours
before the U.S. Senate’s permanent investigations subcommittee,
maintained his stance that Goldman did nothing wrong when it
sold an exotic mortgage derivative — the Abacus CDO — that
cost its buyers $1 billion when housing prices slumped.

“Synthetic CDOs allowed buyers and sellers to be able to
take the kind of positions they wanted in the housing market.
It wasn’t a casino,” he said in the interview. “These were
highly sophisticated parties, some of the most sophisticated in
the world.”

Blankfein defended the idea of synthetic CDOs — or
derivatives built on credit derivatives — saying they let
investors diversify or hedge their exposure to housing markets
efficiently and quickly.

“These were professional investors who sought the risk and
attained they risk they wanted in the market,” he said.

With regard to trading customers, Goldman fulfilled its
duties as a middle man.

“When you are a market maker you have responsibility to
make sure your client is suitable, is knowledgeable and that
what you’re providing serve the purpose and is provides the
risk that the client wants.”

He was more contrite when it came to the broader economy,
where businesses and individuals have suffered from the housing
slump and the ensuing recession. Wall Street banks, including
Goldman, have been blamed for exacerbating the crisis by
creating exotic mortgage securities, enabling some poor
underwriting and then shorting the housing market.

Blankfein said Goldman does bear some responsibility for
the financial crisis of 2007 and 2008.

“I think that financial institutions let the public down
and we are a very important, influential financial institution,
and so we bear our share.”

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(Reporting by Joseph A. Giannone; Editing by Lincoln Feast)

UPDATE 1-Goldman CEO says has board’s support-CNBC