Lloyd Blankfein on consumer lending
From Goldman Sachs CEO Lloyd Blankfein On Trade, Markets And Goldman's Next CEO | CNBC · · CNBC
“We haven't lost our minds moving to a consumer business that we weren't in historically. The consumer business has moved to us. If you're lending to 50 million people, it's math, it's algorithms. When you slap down a credit card, the credit card company, the bank behind it, is making a credit decision to extend credit to you really in that split-second. How are they doing that? They're doing it by algorithms, sophisticated risk management methodology, and it's distributed electronically.”
On , Lloyd Blankfein, Former Chairman & Chief Executive Officer at Goldman Sachs, spoke about consumer lending during Goldman Sachs CEO Lloyd Blankfein On Trade, Markets And Goldman's Next CEO | CNBC on CNBC.
About Lloyd Blankfein
Lloyd Blankfein, former Chairman and CEO of Goldman Sachs, has been promoting his new memoir, *Streetwise: Getting To and Through Goldman Sachs*, in a series of media appearances. He has discussed his upbringing in public housing in Brooklyn, attending Harvard as the first in his family to go to college, and his experience navigating feelings of imposter syndrome. Blankfein described his background as a "streety kind of background" that served as an "early imprint" on him. He also stated that he wanted the book to be "relatable," noting that he is "no genius" and that opportunities came his way as markets trended higher. In interviews, Blankfein has offered his perspective on financial markets and risk. He argued that financial crises are inevitable, using the metaphor of "dry tinder on the floor of the forest" to describe the accumulation of risk during periods of stability. He stated that the "real issue" in the market today is that "we haven't had a reckoning in a long time," leading to assets on balance sheets that "probably are marked too high." Blankfein also commented on the importance of authenticity, recalling advice he received that "everybody knows exactly who you are," and discussed the value of contingency planning over prediction in risk management.