Loan Modification

Goldman bonuses largest in firm?s 140-year history

By Morgan

The Guardian is reporting that Goldman Sachs staff can expect the largest bonuses in the firm’s 140 year history as the investment bank has leveraged (pun intended) dwindling competition and the brokering of US debt issuances to massive first quarter profits. The bank, on track for a $2.5+ billion profit will be doling out large chunks to the bankers that helped rake in the cash.

Funny, how a bank that recently owed $10 billion to the US government and defined the corporate excess that sent Wall Street into a tailspin is now readying itself for massive bonuses.  I wonder what they’re doing in the PR department?  Sweating bullets is my guess.

This ridiculous profiteering and payout adds a bunch of credibility to the TARP as elaborate ruse to protect Citibank theory that’s been bandied about as of late.

I’m just glad so much has changed.  Sigh.

From the article:

Staff at Goldman Sachs staff can look forward to the biggest bonus payouts in the firm’s 140-year history after a spectacular first half of the year, sparking concern that the big investment banks which survived the credit crunch will derail financial regulation reforms.

A lack of competition and a surge in revenues from trading foreign currency, bonds and fixed-income products has sent profits at Goldman Sachs soaring, according to insiders at the firm.

…

In April, Goldman said it would set aside half of its £1.2bn first-quarter profit to reward staff, much of it in bonuses. It is believed to have paid 973 bankers $1m or more last year, while this year’s payouts are on track to be the highest for most of the bank’s 28,000 staff, including about 5,400 in London.

Full post as published by Blown Mortgage on June 22, 2009 (boomark / email).