Goldman Sachs Announces $500 Million Assistance Program

God has yet to issue his approval, but Goldman Sachs might actually be doing something to appease him -- depending on the repayment terms.

After drawing the ire of, well, everyone last week, Goldman chairman Lloyd C. Blankfein has retreated. After telling a Times of London reporter that his bankers were doing “God’s work,” Blankfein issued the mega-bank's first apology on Tuesday for its mistakes, saying “We participated in things that were clearly wrong and have reason to regret… We apologize.”

Now, instead of putting their foot in their mouth, Goldman Sachs will be putting their money there, specifically $500 million. In partnership with the bank's largest shareholder, billionaire investor Warren E. Buffett, Goldman Sachs will assist 10,000 small businesses, offering business and management education, mentoring and access to capital.

Of the $500 million, $200 million will pay for small-business owners' attendance at local community colleges. The remaining $300 million will be offered in loans and grants to small businesses. The funds will predominantly come from Goldman’s foundation.

Goldman claims that the charitable venture is not in any way tied to an effort to restore the bank's faltering reputation.

Despite its roaring profits and quick rebound, Goldman Sachs's perception in the public eye continues to tank, worsened by Blankfein’s comments to the Times and anticipated billions of dollars in bonuses for employees come year-end. This is why Goldman has made some quick PR moves and enlisted Warren Buffett’s everyman persona. 

But the program has yet to convert skeptics. Andy Stern, president of the Service Employees International Union (SEIU), holds reservations: “It’s a down payment, a step forward and hopefully a precursor of a different discussion.”

Goldman’s previous efforts to quell public scorn have backfired. In October the bank announced it would double the size of its charitable foundation by $200 million. The move was largely construed as an attempt to silence public disapproval. Blankfein's “God’s work” remarks came as a part of another public relations attempt, bringing reporters to Goldman Sachs HQ to explain the company's profits.

Success always comes at a price. Unexpectedly, for Goldman Sachs, that price turns out to be serving as a punching bag for public outrage at Wall Street.

Things could always be worse, of course. They could be Citigroup.