The current turmoil in the capital markets is testing Goldman Sachs, but it is also creating historical opportunities for growth, says the bank’s chief executive, Lloyd Blankfein.

Speaking at Merrill Lynch’s annual banking and financial services conference, Mr Blankfein conceded that his firm was not immune from the current downdraft in the markets. Several analysts have predicted that the bank will announce its first loss as a public company when its quarter ends on November 30.