Goldman Sachs, the biggest US investment bank, on Tuesday apologised for its role in the financial crisis and said it would provide $500m over five years  -- or about 2.3 per cent of its estimated bonus and salary pool for 2009 - - to assist 10,000 US small businesses recover from recession.

Lloyd Blankfein, Goldman’s chairman and chief executive, said at a conference in New York that the bank regretted taking part in the cheap credit boom that had fuelled the pre-crisis bubble. “We participated in things that were clearly wrong and have reason to regret,” Blankfein said. “We apologise.”

Blankfein also said he wished he had not told the the London Sunday Times newspaper that Goldman did “God’s work.” He said it was meant as a joke.

The Sunday Times reported that luckily for Blankfein and his firm, "he’s a damn good salesman. He starts with a little humility. He understands that "people are pissed off, mad, and bent out of shape" at bankers’ actions. Goldman played its part in the meltdown that almost destroyed the global financial system. It, like most other banks, lent too much money, made its first quarterly loss for more than a decade last year and ended up taking bail-out cash from Washington. "I know I could slit my wrists and people would cheer," he says. But then, he slowly begins to argue the case for modern banking. "We’re very important," he says, abandoning self-flagellation. "We help companies to grow by helping them to raise capital. Companies that grow create wealth. This, in turn, allows people to have jobs that create more growth and more wealth. It’s a virtuous cycle." To drive home his point, he makes a remarkably bold claim. "We have a social purpose."'

Also on Tuesday, Goldman announced plans to invest $500m over five years in business education, technical assistance and venture capital to assist 10,000 small businesses across the US.

Warren Buffett, a Goldman investor, will co-chair an advisory panel with Dr. Michael Porter of Harvard Business School.

In the third quarter, Goldman Sachs reported that the investment bank had 36 days in which traders made more than $100m.

Tim Geithner, Treasury secretary, will today host a summit with members of Congress, small companies, financial regulators and banks to work on ways to boost lending to the sector

“Small businesses play a vital role in creating jobs and growth in America’s economy,” Lloyd Blankfein said. “We are pleased to work with our partners in this initiative to support small business owners, particularly those in underserved communities.”

“Our recovery is dependent on hard working small business owners across America who will create the jobs that America needs,” Warren Buffett, CEO of his investment holding company Berkshire Hathaway said. “I’m proud to be a part of this innovative program which provides greater access to know-how and capital  -- two ingredients critical to success.”