NEW YORK (AP) ? Goldman Sachs is reviewing internal policies for its bankers involved in deals.
The New York investment bank's policies on conflicts of interest became an issue in the $21 billion buyout of El Paso by Houston natural gas pipeline company Kinder Morgan.
Goldman collected a fee for advising El Paso on the deal. However Goldman failed to disclose that one of its lead bankers on the team owned Kinder Morgan Stock. El Paso was aware that Goldman's private equity arm owned a stake in Kinder Morgan and that Goldman controlled two seats on Kinder Morgan's board.
"We regret that El Paso's board wasn't aware," said David Wells, spokesman at Goldman. "We are reviewing our policies and procedures with the goal of strengthening them."
Goldman is already dealing with fallout from the embarrassing public resignation of employee Greg Smith, who questioned in an Op-Ed article for The New York Times whether the investment bank deals honestly with all its clients.
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