Investment bank Goldman Sachs Group Inc. has apologised for its role in the crisis and is teaming with billionaire investor Warren Buffett to invest $500 million to provide thousands of small business owners across America with college scholarships and boost their access to capital.
The $500 million is worth about 2.3 per cent of the bank's estimated bonus and salary pool for 2009, the Financial Times reports.
The bailed-out investment bank has recently come under fire, and was famously described by Rolling Stone magazine as "a great vampire squid wrapped around the face of humanity", after announcing it would pay its executives $23 billion in bonuses after cashing in at the expense of crisis hit companies during the trough of the crisis.
Goldman’s new philanthropic effort, called "10,000 Small Businesses", includes a $200 million contribution to community colleges, universities and other institutions to give grants to small business owners to further their education.
The New York-based bank also will invest $300 million through a combination of lending and charitable support. Goldman said the money will be funnelled through community development financial institutions to boost lending and technical assistance available to small businesses in underserved communities.
Lloyd Blankfein, Goldman’s chief executive, told a New York conference that the bank regretted taking part in the cheap credit boom that had fuelled the pre-crisis bubble. “We participated in things that were clearly wrong and have reason to regret,” said Mr Blankfein. “We apologise.”
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