Goldman Sachs Group Inc would have $728 billion in risk-weighted assets under yet-to-be-implemented Basel III capital rules, 67 percent more than the investment bank has under current regulations, Chief Executive Lloyd Blankfein said on Tuesday.
Goldman aims to reduce risk-weighted assets to $700 billion by the end of 2013, with $18 billion of that coming from a decrease in credit risk, and another $11 billion coming from a decline in market risk.
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Much of the reduction will come from an expiration of existing trades, like mortgage securitization, derivative portfolios and some investments that will be repaid, Blankfein said at a conference in New York hosted by Bank of America Corp .
"For more than a decade, larger size and complexity were viewed entirely as synergistic and virtuous," Blankfein said. "For the first time, it's clear that size and complexity come with a higher cost."
Blankfein's disclosure of risk-weighted assets under Basel III rules was the first time Goldman reported those figures.
At the end of the third quarter, the bank said it had $435.3 billion in risk-weighted assets under current rules, and expected that number to fall by $88 billion by 2015.