Goldman reviews conflict-of-interest policies

(Reuters) - Goldman Sachs Group Inc is reviewing conflict-of-interest policies and procedures for investment bankers in light of a recent controversy over a Goldman-advised deal.

The review comes after Goldman was criticized for advising El Paso Corp on its planned sale to Kinder Morgan Inc even though Goldman had a multibillion-dollar stake in the acquirer and its top energy banker held a $340,000 personal stake in Kinder Morgan.

"We regret the El Paso Board wasn't aware of the investment and are reviewing our policies and procedures related to bankers' investments and how they are disclosed with the goal of strengthening them," Goldman said in a statement on Friday.

The review was first reported by The Wall Street Journal, which said Goldman investment bankers may be required to disclose personal financial holdings to clients.

The Wall Street divisions of other banks, including Barclays Plc , Bank of America Corp and Citigroup Inc , are also reviewing how they manage conflicts on investment banking deals, the Journal reported, citing unnamed people familiar with the matter.

Representatives for Citigroup, Bank of America and Morgan Stanley declined to comment. A spokesperson for Barclays could not immediately be reached for comment.