UPDATE 3-Goldman committee to review firm’s conflicts

* Committee to look at conflicts, other areas

* Goldman names more than a dozen employees to committee

* Corrigan, Evans to head committee
(Adds Nexen deal)

NEW YORK, May 14 (BestGrowthStock) – Goldman Sachs Group Inc (GS.N: )
said it is setting up an internal committee to look at how the
company deals with potential conflicts of interest and how it
can better disclose what it does.

The biggest U.S. investment bank said the committee will be
headed by Gerald Corrigan, chairman of Goldman Sachs Bank USA,
and Michael Evans, a vice chairman of the company.

Goldman also named more than a dozen employees to the
committee, which includes Arthur Levitt, a former chairman of
the U.S. Securities and Exchange Commission and a current
advisor to the company.

Goldman said last week at its annual meeting that it was
setting up such a committee. On Friday, the bank said the
committee would look at areas, including conflicts, disclosure,
client relationships, structured products, and education and
ethics.

The U.S. Securities and Exchange Commission sued Goldman
last month for civil fraud, accusing the bank of failing to
disclose key information to investors in repackaged mortgage
debt. The Department of Justice has launched a criminal probe
into the bank and other Wall Street firms are being examined,
too.

Since the SEC announced its probe, the company’s shares
have fallen more than 20 percent. Goldman Sachs initially said
the SEC’s charges were without merit and broadly disagreed with
any charge that its behavior was improper.

But after hours of questioning at a Senate subcommittee
hearing in late April, Blankfein said: “Everything that’s been
the subject of criticism will be tightened up.”

Goldman is winding down one of its proprietary trading
desks, a source familiar with the matter said earlier on
Friday, in what may be an effort to reduce the risk it takes in
structured finance. Goldman declined to comment.

The desk trades collateralized loan obligations, or
repackaged corporate loans, and is being merged with a desk
that trades these instruments for clients, the source said.

Goldman is buying the North American natural gas marketing
operations of Nexen Inc, (NXY.TO: ) Nexen said earlier on Friday
for an undisclosed sum. Goldman is the biggest commodities
player among Wall Street banks.

Stock Market Report

(Reporting by Dan Wilchins; editing by Leslie Gevirtz and
Andre Grenon and Carol Bishopric)

UPDATE 3-Goldman committee to review firm’s conflicts