NEW YORK Dec 12 Goldman Sachs Group Inc
Chief Executive Lloyd Blankfein said on Wednesday he believes
his successor will come from within the firm.
While the choice is ultimately up to Goldman's board of
directors, Blankfein said: "It is a very high likelihood, close
to 100 percent, that the next leader of Goldman Sachs is at
Blankfein, responding to questions at a New York Times
conference, said he is not yet giving up his post. Blankfein,
58, has been in the job since June 2006.
Addressing other topics, he said a deal in Washington to
avert a "fiscal cliff" of steep tax hikes and budget cuts set
for the end of the year is most likely to come at the last
Until then, he said, neither side in the negotiations is
likely to reveal compromises they will make for fear of being
criticized by supporters.
"The way this deal will get done is when both sides put
their hands on a proposal together just before the vote has to
take place," said Blankfein, among corporate executives meeting
with politicians to push for a deal.
Blankfein also warned bond investors to be careful about
losses they will suffer when interest rates rise as the economy
"One of the big risks that is looming," Blankfein said, is
that "people are once again complacent about this low level of
"At some point there will be a reversal and that will have
an effect on portfolios and people will have losses," Blankfein
In the meantime, Goldman is urging companies to sell bonds
"We are advising all companies," he said, "to borrow as much
as they think they are going to need for as long as they think
they are going to need it, because interest rates are so cheap."