Goldman Sachs chairman and chief executive Lloyd Blankfein has defended the financial health of the biggest banks, arguing that investors haven’t accounted fully for the steps the industry has taken to fortify their balance sheets in the years since the financial crisis.

The additional capital Goldman Sachs and other banks have stockpiled may drag down their returns, but "the silver lining is that it represents a substantial increase in safety and soundness, as intended by the regulators," Blankfein, the bank's chairman and chief executive, said on February 9 during a presentation at the Credit Suisse Financial Services Conference.