141. The Goldman Sachs Group, Inc. And its financial services to institutional clients.

The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.

The Goldman Sachs Group, Inc. reports its activities in the following four business segments:

1) Investment Banking.

2) Institutional Client Services. The Goldman Sachs Group, Inc. facilitates client transactions and make markets in fixed income, equity, currency and commodity products, primarily with institutional clients such as corporations, financial institutions, investment funds and governments. It also makes markets in and clear client transactions on major stock, options and futures exchanges worldwide and provide financing, securities lending and other prime brokerage services to institutional clients.

3) Investing & Lending.

4) Investment Management.

Institutional Client Services segment of the Goldman Sachs Group, Inc. is comprised of:

1) Fixed Income, Currency and Commodities Client Execution.

Includes client execution activities related to making markets in interest rate products, credit products, mortgages, currencies and commodities. Goldman Sachs generate market-making revenues in these activities in three ways:

- In large, highly liquid markets (such as markets for U.S. Treasury bills or certain mortgage pass-through certificates), execute a high volume of transactions for clients for modest spreads and fees.

- In less liquid markets (such as mid-cap corporate bonds, growth market currencies or certain non-agency mortgage-backed securities), execute transactions for clients for spreads and fees that are generally somewhat larger.

- Structure and execute transactions involving customized or tailor-made products that address clients’ risk exposures, investment objectives or other complex needs (such as a jet fuel hedge for an airline).

Activities in mortgages include commercial mortgage-related securities, loans and derivatives, residential mortgage-related securities, loans and derivatives (including U.S. government agency – issued collateralized mortgage obligations, other prime, subprime and Alt-A securities and loans),and other asset-backed securities, loans and derivatives.

2) Equities.

Includes client execution activities related to making markets in equity products and commissions and fees from executing and clearing institutional client transactions on major stock, options and futures exchanges worldwide, as well as over-the-counter transactions. Equities also includes securities services business, which provides financing, securities lending and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds and foundations, and generates revenues primarily in the form of interest rate spreads or fees.

3) Commissions and Fees makes money by conducting transactions on stocks, options, and futures on behalf of institutional clients.

4) Securities Services earns fees by providing financing, lending, as well as clearing and settlement of securities for clients.

Institutional Client Services makes markets and facilitates client transactions in fixed income, equity, currency and commodity products. In addition, make markets in and clear client transactions on major stock, options and futures exchanges worldwide. Market makers provide liquidity and play a critical role in price discovery, which contributes to the overall efficiency of the capital markets. Willingness to make markets, commit capital and take risk in a broad range of products is crucial to client relationships.