Blankfein said that Goldman has not interacted enough with the public and acknowledged a need to make broader outreach efforts.  "We understand that there is a disconnect between how we as a firm view ourselves and how the broader public perceives our role and activities in the market," he said before a standing-room-only audience of about 250 shareholders, among them the Rev. Jesse L. Jackson. "To address this, we need a rigorous self-examination."  Blankfein, 55, said the review would involve input from shareholders, clients and regulators, and would seek to make sure that Goldman serves its customers and the broader public interest.  The meeting comes as the firm battles to preserve its reputation amid one of the darkest episodes in its 140-history.  Last month, the Securities and Exchange Commission filed civil fraud charges against Goldman, accusing it of selling securities that were secretly designed to fail, and the Justice Department has opened a criminal probe into the firm's activities. Goldman has vehemently denied the SEC's fraud charges. The criminal inquiry is believed to be in its early stages.  On Friday, investors mostly shied away from asking tough questions about the legal challenges facing the company, even as Goldman's shares have tumbled 22 percent since the government's case became public.  Blankfein told shareholders during the three-and-a-half-hour meeting that he has no plans to resign. Applause erupted when one stockholder noted the firm's blistering profits and said Blankfein was doing "a great job."  Most stockholders agreed that Blankfein should stay on, voting down a shareholder proposal to split the role of chairman and chief executive. Several large companies, including Bank of America, have recently moved to split the roles, considered good corporate governance practice by many experts, after pressure from shareholders.  A little more than 19 percent of Goldman's shareholders voted in favor of splitting the chairman and chief executive jobs, according to preliminary results announced by the firm during the meeting.  "Support from less than 20 percent of shares cast is low compared with other recent results, but opposition might be inflated by Goldman's large insider voting bloc," said Patrick McGurn, special counsel of shareholder advisory firm RiskMetrics Group.  McGurn added that in 2009, proposals calling for boards to elect independent chairmen drew support of 34 percent on average. Goldman employees as a group own 4 percent of the firm's shares and are among the firm's largest stockholders.  Bridget Restivo, a shareholder, praised Blankfein's handling of the meeting and lashed out at Washington. She sided with Goldman executives in saying that the SEC lawsuit has no merit, and she hopes Goldman executives will settle the case soon.  "It's taking away from their focus -- you want to settle it," she said.  Gary Cohn, Goldman's chief operating officer, declined to comment on whether the firm is negotiating a settlement with the SEC. Responding to reporters' questions after the meeting, Cohn said, "We need to deal with the SEC case."
NEW YORK -- Goldman Sachs chief executive Lloyd C. Blankfein struck a largely conciliatory tone Friday during the bank's annual shareholders meeting, announcing plans for a broad review of its business practices in the wake of accusations that the firm had acted against the interests of its clients.