The chief executive of Goldman Sachs has highlighted Europe as a key region for the investment bank, as rival firms cut back operations.

Speaking at the Bank of America Merrill Lynch 2012 Banking and Financial Services Conference today, Lloyd Blankfein said: "In more developed markets across Europe, we see an important opportunity for the firm as European debt markets become increasingly active. In leverage finance, for instance, 57% of the issuance since 2010 are bonds, compared to just 15% pre-crisis.