Former Goldman Sachs CEO Blankfein warns of hidden "fire" risk in the private equity market

NightAirdropper · 2026-03-28T09:56:45+00:00

Former Goldman Sachs CEO Blankfein warns investors to be cautious of the accumulation of unsold private assets on the balance sheet, which may pose an overvaluation risk. He likens the accumulated risk to flammable materials in a forest, pointing out that the longer the duration, the greater the risk of a sudden collapse.

NightAirdropper

2026-03-28 09:56:45

Abstract generation in progress

Gelonghui March 26｜Former CEO of Goldman Sachs, Lloyd Blankfein, said investors should be wary of the continuously accumulating unsold private assets on their balance sheets, some of which may be overvalued, and that a trigger could set off widespread asset write-downs. “At some point, there has to be an external force or a moment of liquidation—something that forces you to confront how much your balance sheet assets are actually worth,” Blankfein said in an interview with the media. In a memoir published this month, “Streetwise: Getting to and Through Goldman Sachs,” Blankfein warned that the longer the time since the last crisis, the higher the likelihood of a larger-scale blowup. “I like to use the analogy of flammable material piling up on the forest floor—there will always be a spark,” Blankfein said. “But the longer the interval between sparks and the fire catching, the more flammable material accumulates.”

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.