Goldman Sachs CEO says sovereign balance sheets look risky

BOSTON (Reuters) – Goldman Sachs Group Inc Chief Executive Lloyd Blankfein said on Thursday sovereign country balance sheets look risky to him as deficits become a larger percentage of their gross domestic product.

Lloyd Blankfein, CEO of Goldman Sachs, pauses while answering a question at the Boston College Chief Executives Club luncheon in Boston, Massachusetts, U.S., March 22, 2018. REUTERS/Brian Snyder
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“The sovereigns look risky,” Blankfein said at a luncheon hosted by the Boston College Chief Executives Club.

He said much of the banking industry’s problems have been solved since the financial crisis. But those problems have migrated to the balance sheets of sovereign countries, he said.

Reporting By Tim McLaughlin; Editing by Susan Thomas