Schwarzman: Blackstone Will Remain Goldman Sachs Client

NEW YORK (Reuters) – Private equity firm Blackstone Group (BX.N) will remain a major client of Goldman Sachs (GS.N) and has never had reason to question the investment bank’s behavior on any deal it has worked on with them, Chief Executive Stephen Schwarzman said on Thursday.

Goldman last Friday was accused of fraud by the U.S. Securities and Exchange Commission in the structuring and marketing of a debt product tied to subprime mortgages.

“We’ve been working with Goldman Sachs since Blackstone was founded almost 25 years ago and I’ve been personally working with them for over 40 years, and we’ve never had any circumstance where there’s been any question about their ethical character or their behavior on any transaction we were involved with,” Schwarzman said.

Schwarzman, asked on a conference call related to Blackstone’s earnings, said he could not comment on the specific transaction under scrutiny as Blackstone had no involvement.

“We’re a major client of Goldman and we’ll will continue to remain a major client of Goldman,” he said.

(Reporting by Megan Davies; Editing by Phil Berlowitz)