[ by Melanie Gretchen ] Goldman Sachs is prepared for the dissolution of the euro, President Gary Cohn told a group of investors at a conference sponsored by Sanford C. Bernstein & Co..  As Europe's problems continue, Goldman, like other banks, has reduced its exposure to Europe and currently was examining all euro-denominated contracts to understand what the ability to pay in a different currency would be if the euro disappeared. Risk Management: Before the Fall. Amid speculation that Greece may leave the currency, Mr. Cohn responded to questions on array of topics, including whether Goldman would consider selling itself off in parts and the possible rating downgrade by Moody’s Investors Service of a number of big financial companies, including Goldman. "We have gone through contract by contract and position by position to understand what any permutation could be," he told the audience, to answer how Goldman might manage through a breakup of the European Monetary Union. Goldman's Safe. Brad Hintz, the Bernstein analyst who was host of the conference, said Goldman was a "relative winner" when it came to a possible Moody’s downgrade because its rating were not expected to fall as far as many of its rivals. "It’s hard to say winner and downgrade in the same sentence," Mr. Cohn responded, drawing laughter from the audience. A number of senior Wall Street executives have questioned the wisdom of Moody’s threat to cut the ratings of the financial institutions, given the efforts most banks have made to reduce the amount of borrowed money they use to run their operations and increase their capital positions. “The financial services industry is more creditworthy and sound today than it has been in a long period of time,” Mr. Cohn said.  Moody’s is expected to announce its decision on the downgrades by the end of June. Breakup Potential Due to Performance. The Goldman president denied the suggestion that the firm, which is trading well below its book, or breakup, value, should sell off parts of itself to unlock some value for shareholders, noting:  "I would say the vast, vast, vast majority of our businesses at Goldman are enhanced by being part of the global firm." Although Goldman's stock price is depressed, as regulators force banks to end proprietary trading, reduce borrowing, and hold more capital, over the long haul, the firm has successfully managed to meet its target return on equity of around 20%.  Mr. Cohn added: "While we are not in a position to offer a new R.O.E. target today given the significant regulatory uncertainty, our organization remains intensely focused on maximizing risk-adjusted R.O.E.’s through the cycle for the benefit of our shareholders." Client Interests. Indirectly, Mr. Cohn responded to accusations that the firm put its own interests ahead of its clients.  While no question broached the issue, the president's opening remarks focused on the importance of clients to Goldman’s operations, for he mentioned the word 53 times in his comments, and said that over the past year, he had met with over 400 clients in 12 countries.  Such interactions, Mr. Cohn said, reinforces the importance and value of our client franchise.    [Dealbook, 5/31/12].