Goldman Sachs to pay biggest bonuses in 140 years
I guess you can file this under “someone’s loss is someone else’s gain.”
According to the Observer newspaper in London, Goldman Sachs is now poised to pay the biggest staff bonuses in the company’s 140-year history. With other investment banks driven out of business, Goldman and other survivors have much less competition and are making record profits.
“Staff in London were briefed last week on the banking and securities company’s prospects and told they could look forward to bumper bonuses if, as predicted, it completed its most profitable year ever,” the Observer reports.
“Barclays Capital, Credit Suisse and Deutsche Bank are among the European firms expected to register bumper profits, along with US banks JP Morgan and Morgan Stanley following the near collapse and government rescue of major trading houses including Citigroup, Merrill Lynch, UBS and Royal Bank of Scotland.
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.
Critics of the bonus culture in the City said the dominance of a few risk-taking investment banks is undermining the efforts of regulators to stabilise the financial system.
Vince Cable, the (British) Liberal Democrat treasury spokesman, said: “The investment banks more than any other institutions created the culture of excessive leverage, excessive risk and excessive bonuses that led to the downfall of the financial system. Now they are cashing in and the same bonus culture has returned. The result must be that we are being pushed to the edge of another crash.”
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179 comments Add your comment
DB, Gwinnettian
June 22nd, 2009
7:37 am
Why? Because we can! now bugger off, groundlings!
Bud Wiser
June 22nd, 2009
7:45 am
“With other investment banks driven out of business, Goldman and other survivors have much less competition and are making record profits.”
Duh.
Suppose that would have worked in America as well for the thousands of banks, auto makers, all failing enterprises, etc., etc., that Obowo propped up with trillions of OUR dollars?
Morons.
Spend your way out of bankruptcy – Economic Failure 1000000001.
Morons.
I Report :-) You Whine :-(
June 22nd, 2009
7:46 am
Most of these people have low base salaries and are paid bonuses according to their job performance.
But I wouldn’t expect some socialist to know that!
eewwww
TnGelding
June 22nd, 2009
7:48 am
The shareholders are being ripped off again. Market cap is down 40% in last two years for GS. I’m thinking the bonuses will be curtailed.
Hank Paulson
June 22nd, 2009
7:48 am
Can’t touch this!
You Americans are idiots.
TnGelding
June 22nd, 2009
7:50 am
That depends on what your definition of low is.
Redneck Convert
June 22nd, 2009
7:51 am
Well, I sure hope Obama takes over other beer warehouses. If my co. can get the others under his control, I might could get enough bonus to buy a new double-wide and a humongous pickup truck. This Private Innerprize can be great if you can get guvmint involved and you’re in a co. that don’t need guvmint help. Have a good day everybody.
I'm ruled by Andy
June 22nd, 2009
7:55 am
The holeshot roadside stand where I work doesn’t pay any bonuses.
ewwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww
Turd Ferguson
June 22nd, 2009
7:55 am
Ah yes…the democrats will be up in arms over this. Crying and whining about bonus’ paid to the undeserving whilst kids are starving in compton and how they work very hard at McDonalds drive-thru and also deserve a bonus.
Tonite the Democrats will be cry cry crying in their pillows because “IT ISNT FAIR…” WAAAAAHHH!!!!!
TnGelding
June 22nd, 2009
8:00 am
Bud Wiser
June 22nd, 2009
7:45 am
GS took “bailout” money as well:
http://www.youtube.com/watch?v=Ek7zc0lJxbM
Paul
June 22nd, 2009
8:02 am
Mrs. Godzilla – ummm, my concerns were with the Obama Administration and the President, specifically, following the law (the one he consponsored).
So, no, my concerns about the checks of the Congress balancing out the Executive’s disregard of lawful process have not been alleviated.
Didja hear Bill Maher this weekend say Democrats are the New Republicans? LOL! How’s the headache now? Migraine level?
Now for today’s topic: Goldman Sachs to pay biggest bonuses in 140 years
What do you expect when Democrats take over Congress and the White House?
Bill Maher? Hello?
mike
June 22nd, 2009
8:02 am
Well, as the large bonuses that were paid in previous years were blamed on Bush, surely these same critics will hold Obama accountable for this, particularly as his administration has far more influence over Wall Street than the previous administration.
Paul
June 22nd, 2009
8:03 am
Missed the lead-in sentence above:
[[Unfinished business from when I was away: from the IG firing – Spock Logic Paul, Have your concerns about those checks and balances been addressed to your satisfaction now.]]
Mrs. Godzilla – ummm, my concerns were with the Obama Administration and the President, specifically, following the law (the one he consponsored).
mike
June 22nd, 2009
8:03 am
Paul –
“Didja hear Bill Maher this weekend say Democrats are the New Republicans?”
Well don’t you understand that the only people who are allowed to be rich are Maher and his friends? All other rich people are “greedy”.
I Report :-) You Whine :-(
June 22nd, 2009
8:08 am
Mr. Obama’s June 4 speech in Cairo did not reshape the Islamic landscape. I was in Saudi Arabia when Mr. Obama traveled to Riyadh and Cairo. The earth did not move, life went on as usual. There were countless people puzzled by the presumption of the entire exercise, an outsider walking into sacred matters of their faith. In Saudi Arabia, and in the Arabic commentaries of other lands, there was unease that so complicated an ideological and cultural terrain could be approached with such ease and haste.-WSJ
Yeah, stop butting into their politics, you goons.
jt
June 22nd, 2009
8:11 am
It is dissapointing to see the citizens of Iceland showing more courage than Americans.
I bet you that the “tassle-loafed” crooks shy away from that place.
Regardless, why is this a suprise? Goldman Sachs can invest in even MORE riskier schemes now knowing that the profits are theirs but any loss is the taxpayers.
A damn good gig.
Road Scholar
June 22nd, 2009
8:26 am
Did these same employees pay for the losses they suffered in previous years? Were are the checks (pun) and balances?
I rule Andy
June 22nd, 2009
8:27 am
No need to butt into anybody’s politics, we just need to bomb them into submission, send in some ground troops and sacrifice a couple thousand of our young soldiers, and “plant the seeds of democracy”, then sit back and let them “greet us with flowers”… No?
ewwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww
I rule Andy
June 22nd, 2009
8:29 am
Yes Mike,
And when the mullahs give way to the street protests Obama will go down in history as the president who defeated the Iranian Theocracy…
Joe Matarotz
June 22nd, 2009
8:31 am
The Democraps are doing their best to ignore it but gasoline prices have risen for 54 straight days. Today, gasoline prices dropped three tenths of a cent, breaking the 54 day streak. I’m feelin’ that relief in my wallet already.
Jay, where’s that Bookman indignation calling for the president to do something? Jay? Jay? ANybody in there? I get it. You only blame Republicant administrations. You are just too fair and balanced.
Capitalist at Heart
June 22nd, 2009
8:39 am
Well, it sure is a pleasant surprise to see that our President Obama is actually a Republican. No socialist liberal would ever let the free market system determine how much to pay those folks. Come to think of it, they would not even allow these companies to exist without being at least majority owned by the state.
Bosch
June 22nd, 2009
8:48 am
Paul,
Good morning and:
“What do you expect when Democrats take over Congress and the White House?”
I know that’s a joke.
Um, when Bush gave Goldman their bailout – did he put in stipulations to pay us back?
RW-(the original)
June 22nd, 2009
8:49 am
I guess you can file this under “someone’s loss is someone else’s gain.”
It really would be nice if you used the Wordpress feature that let’s you file stories under various categories.
Bosch
June 22nd, 2009
8:49 am
Joe,
When since the inception of the automobile has gas prices NOT risen during the summer?
Pennsylvanian
June 22nd, 2009
8:50 am
I Rule Andy @ 8:43
That was true during the W administration, but only because W was in the pocket of the oil companies and allowed it to happen. Why hasn’t POTUS Obama stepped in and stopped this annual ripoff? I paid $2.859/gal to fill my little Mustang with premium yesterday. I want action from this administration now. Or they also in the tank with the oil companies?
Bosch
June 22nd, 2009
8:53 am
Pennsylvanian,
What’d ya’ pay this time last year?
Redneck's cuzzin Insane Jane
June 22nd, 2009
8:58 am
Goldman Sachs having a banner year? This is jes like when that turribul storm destroyed the Shrimpin Industry in all of ByYou LaBattry, leaving only Forrest Gump’s boat The JenNAY to collect all the Shrimp!
Capitalist at Heart
June 22nd, 2009
8:59 am
A good CEO does whatever it takes to maintain his salary and bonuses and perks. It’s the capitalist way.
A quarter of U.S. employers have eliminated matching contributions to employee 401(k) retirement plans since September to save money amid the economy’s downturn, according to research released on Monday.
DB, Gwinnettian
June 22nd, 2009
8:59 am
Joe @ 8.31, Penn @ 8.50, to echo what others have posted, yes, gas prices rising in late-spring/early summer is not especially shocking, given historical pricing data I’ve seen.
As for current prices, yeah, the 6/15/09 weekly average was $2.63/gallon. 6/16/008 it was $4.00/gallon; 6/18/07, $2.97; 6/19/06, $2.79… somehow I don’t think people are going to take to the streets over this.
Normal
June 22nd, 2009
9:00 am
Good morning world, and what a wonderful world it is…Our Government has been 100% sucessful in keeping dragons from invading America…That’s one positive thing we should celebrate!!
Sane Jane
June 22nd, 2009
9:00 am
I really have to tip my cap to Redneck Convert. A newfound respect for his craft – it ain’t easy translating one’s language & cultural references into Idjit-speak.
Pennsylvanian
June 22nd, 2009
9:03 am
What does it matter how much I paid last year? Do I get a refund? If POTUS controls prices at the pump, what’s he waiting for?
Bosch
June 22nd, 2009
9:09 am
Pennsylvanian,
Got hyperbole?
Road Scholar
June 22nd, 2009
9:09 am
Pennsylvanian: use regular, or a blend. It’s cheaper! Oh, it’s a FORD; probably have to use high test?
Bosch
June 22nd, 2009
9:10 am
Normal,
And zebras. Notice, there are no wild hoards of zebras running around. Things are good AND I just finished a big bowl of cheesy shrimp grits – so things are even better!
Capitalist at Heart
June 22nd, 2009
9:11 am
What is all this negativity about gasoline prices. How do you folks expect companies like Morgan Stanley and Goldman Sachs to make money anyway. They had to start buying up and even leasing storage facilities to hold their oil purchases and other refined products because there was just so much easy money to be made. That’s the way free markets work, after all. Don’t you folks know anything about commodities trading.
Sane Jane
June 22nd, 2009
9:12 am
Don’t these deadbeats still owe the US 3 billion dollars? (given away courtesy of Hank “I used to run Goldman” Paulson?)
I’m curious why there’s not more outrage. A billion dollars here, a billion dollars there… sooner or later, it adds up to real money!
Sane Jane
June 22nd, 2009
9:13 am
Anybody who drives a Pusstang forfeits their right to yap about gas prices.
Paul
June 22nd, 2009
9:14 am
Hey Bosch
[[What do you expect when Democrats take over Congress and the White House?”
I know that’s a joke.]]
Shhhh… you’ll spoil the fun!
In answer to your question, I do think so. At least, now that things seem to be more stabilized and the stress tests are done the paybacks are occurring.
Fast forward: paybacks are a fact of life, financial controls have some effect (RW-the original – I understand one control requires institutions that originate mortgages to keep at least part of the mortgage for the life of the loan instead of selling them all off – that’s gotta be a good thing, right?) US automakers are making money and the gov’t leaves them alone, the Bush national security policies continue…
and disgruntled Dems dump Obama, who runs on the Rep ticket.
I’m just not in much of a serious mood. Too much fun spillover from Father’s Day.
Hey, that Krauthammer thread (for the record, I think he’s a tad bit too forceful on the Iran thing, but the Pres could do more to state American values without naming sides)… did anyone wonder why, if the protesters don’t care all that much what we think, did anyone answer why their signs are in English?
RW-(the original)
June 22nd, 2009
9:15 am
So after years of wailing about Bush and his oil cronies sticking it to us and being told to elect Democrats to put an end to that the Democrat answer now is that this is just normal?
Let’s hope the electorate starts to remember these things.
Bosch,
I’m regretting this even as I type, but what the he!! happened with those grass hockey scores yesterday that let the US team move on?
Paul
June 22nd, 2009
9:16 am
Bosch
Good mood – all that, plus, tonight Texas takes on some team from someplace called Louisiana in the College World Series. The last game of the semis was great.
oldmac
June 22nd, 2009
9:16 am
Hey bedwetters, while the poor car company bosses and the union thugs where trying to get hooked up to the “big teat,” the GS guys rolled up their sleeves and made the best of it. Just because it’s over YOUR paygrade doesn’t make it wrong. My dad always told me not to look in someone else pocket.
BJ
Bosch
June 22nd, 2009
9:17 am
Paul,
So, Goldman IS paying us back? If so, then I personally have no problem with bonuses, but if I were a stockholder, I’d be very cautious as to how they are throwing around the money.
NotObama
June 22nd, 2009
9:17 am
Hey someone has to make the big bucks in order to pay the oppressive taxes Obama and crew have proposed. What are we up to 13 days and 12 trillion spent? We can’t afford this now, let alone without the EVIL rich, Jay.
Normal
June 22nd, 2009
9:17 am
Bosch…We gotta get our good feelin’ where ever we can, otherwise all of these whiners will cramp our high…Just sayin’. Cheesey shrimp grits for breakfast, huh…dammit, now that’s southern!
Pennsylvanian
June 22nd, 2009
9:18 am
Pusstang? My, my, I thought ladies hated the P word. Stock Mustangs run happily on regular, but who wants a stock Mustang? For the record, I am not complaining about gasoline prices. I can afford it. I wanna see POTUS do something about it.
Sane Jane
June 22nd, 2009
9:19 am
In unrelated news, while watching the 30-year-old comedy fave “Trading Places” for the umpteenth time this weekend, the classic “sell the contracts high before you buy’em low” switcheroo with Frozen Concentrated Orange Juice bit FINALLY made sense to me! I understand now!
Only stupid me was impeded by not realizing you can sell a contract before you’ve actually bought it.
Bosch
June 22nd, 2009
9:21 am
RW,
I’m as dumbfounded as you are. I couldn’t believe it. I should have more confidence in the home team. Dusty would probably say that if I loved my country more, I would have the confidence needed.
I really couldn’t believe it, it happened EXACTLY as mathematically as it could – but I’m really glad they move on. All I’ve got to say is BRING ON SPAIN!!!
DB, Gwinnettian
June 22nd, 2009
9:22 am
Pennsy gave us:
If POTUS controls prices at the pump, what’s he waiting for?
RW said:
So after years of wailing about Bush and his oil cronies sticking it to us and being told to elect Democrats to put an end to that
Setting aside the straw-mannish nature of these posts, and that neither of you have provided a single example of someone claiming (or even “wailing!”) that the POTUS personally controls gasoline prices—you do recognize the difference between 4 dollars per gallon and $2.63, yes?
Sane Jane
June 22nd, 2009
9:22 am
Just teasin’ ya, PA.
And for the record, it’s the C U Next Tuesday word that gets us all riled up.