Combination photograph of Wall Street bank executives testifying before House Financial Services Committee on Capitol Hill in Washington, February 11, 2009.  Top row (L-R), are: Bank of New York's Robert Kelly, JPMorgan Chase's Jamie Dimon, Goldman Sachs' Lloyd Blankfein and Wells Fargo's John Stumpf. Bottom row (L-R), are: CitiGroup's Vikram Pandit, Morgan Stanley's John Mack, Bank of America's Ken Lewis and State Street's Ronald Logue.  By Edward Taylor

FRANKFURT, Sept 9 (Reuters) – The head of U.S. bank Goldman Sachs said on Wednesday that anger over bankers’ pay was “understandable and appropriate”, and that greater scrutiny of trade in complex instruments was needed to keep banks in check.   But with the banking sector bouncing back from the financial crisis, regulatory overkill could choke off economic growth, Lloyd Blankfein told an industry conference in Germany’s financial hub.

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