Goldman Sachs held too much debt leading up to crisis

Goldman Sachs had too much debt leading up to the 2008 financial crisis, the head of the investment bank said Tuesday night. 

Because of the economic collapse, firms will probably operate more conservatively into the future but legislation is still needed to end the 'too big to fail' mentality, CEO Lloyd Blankfein told lawmakers on the Senate Permanent Subcommittee on Investigations. 

"With the benefit of hindsight we were too leveraged," he said. Goldman Sachs has cut its ratio of debt to equity in half since they accepted help from the federal government, he said. 

He advocated requiring firms to hold more capital and liquidity, especially because most financial companies and their actions are interconnected. 

"Some additional legislation is warranted," he said and, "I would like to be helpful."

Blankfein said he will spend the rest of his life and career in "fear" and "anxiety" of another financial collapse. 

Accepting bailout money from the Troubled Asset Relief Program was "embarrassing situation then and now," he said.  

But he insisted Goldman wasn't waiting for government money and probably wouldn't have failed because his firm managed to get financing from investor Warren Buffett a few weeks before the bailout came along.