Goldman Sachs' reputation has been "tarnished", says Altman

"One of the areas most misunderstood in risk management is reputational risk," says Ed Altman, professor of finance at New York University's Stern business school. "A single event could blow up an institution. "When the most knowledgeable party is also the one structuring and taking positions, that has been argued as going beyond what a prop desk should do," he adds. "It goes beyond inventory accumulation [to help flow trading business]." Prop desks are confronted with conflicts. They…