At a banking conference in Frankfurt, Goldman Sachs CEO Lloyd Blankfein said some exotic financial products lacked social or economic value and that banks had lost control of the instruments. Blankfein also said anger about bankers' compensation is "understandable and appropriate." He reiterated the "important economic and social purpose" of derivatives and argued that a blanket ban on customized derivatives would hinder growth. However, he said the complex products should lead to "more rigorous capital requirements."
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