By Philip Aldrick
Addressing the influential Treasury Select Committee, Gerald Corrigan, a Goldman Sachs managing director, accepted that the investment bank had "enabled politicians to mask borrowings" through a complex currency transaction in 2001.
The so-called "swap" allowed Greece to conceal some of its debts and meet eurozone limits on government borrowing. Goldman made an estimated £192m in fees on the deal.
"With the benefit of hindsight, it seems very clear that standards of transparency could have been and should have been higher," Mr Corrigan said.
"It is true that currency swaps entered into by Goldman and Greece did produce a small reduction in the debt to GDP ratio at that time."
Michael Fallon, a Conservative MP and deputy chairman of the committee, said: "The effect, as you acknowledge, was to help Greece fiddle the books."
Mr Corrigan replied: "Goldman was by no means the only bank involved in the transactions."
