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Scunnered

Goldman To Make Record Bonus Payout

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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.

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.

...

David Williams, an investment banking analyst at Fox Pitt Kelton, said: "This year is shaping up to be the best year ever for investment banks, or at least those that have emerged relatively unscathed from the credit crisis.

"These banks are intermediaries in the bond markets where governments and companies are raising billions of pounds of new money. There is also a lack of competition that means they can charge huge sums for doing business."

...

Full story: http://www.guardian.co.uk/business/2009/ju...-bonus-payments.

Makes you glad to be alive, doesn't it?

Edited by Scunnered

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Guest DissipatedYouthIsValuable

So.

Governments around the World drop new money into banks and markets and Goldman somehow manages to hoover up most of this new money?

Viva capitalismo.

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Time to oil the tumbrils, check the lampposts, test the ropes and brush up on one's French?

Ah! ça ira, ça ira, ça ira 	Ah! It'll be fine, It'll be fine, It'll be fineles aristocrates à la lanterne! 	aristocrats to the lamp-postAh! ça ira, ça ira, ça ira 	Ah! It'll be fine, It'll be fine, It'll be fineles aristocrates on les pendra! 	the aristocrats, we'll hang them!Si on n’ les pend pas 	If we don't hang themOn les rompra 	We'll break themSi on n’ les rompt pas 	If we don't break themOn les brûlera. 	We'll burn themAh! ça ira, ça ira, ça ira 	Ah! It'll be fine, It'll be fine, It'll be fineles aristocrates à la lanterne! 	aristocrats to the lamp-postAh! ça ira, ça ira, ça ira 	Ah! It'll be fine, It'll be fine, It'll be fineles aristocrates on les pendra! 	the aristocrats, we'll hang them!Nous n’avions plus ni nobles, ni prêtres, 	We have no more nobles nor priestsAh ! ça ira, ça ira, ça ira, 	Ah! It'll be fine, It'll be fine, It'll be fineL’égalité partout régnera. 	Equality will reign everywhereL’esclave autrichien le suivra, 	The Austrian slave shall follow himAh ! ça ira, ça ira, ça ira, 	Ah! It'll be fine, It'll be fine, It'll be fineEt leur infernale clique 	And their infernal cliqueAu diable s’envolera. 	Shall go to hellAh! ça ira, ça ira, ça ira 	Ah! It'll be fine, It'll be fine, It'll be fineles aristocrates à la lanterne! 	aristocrats to the lamp-postAh! ça ira, ça ira, ça ira 	Ah! It'll be fine, It'll be fine, It'll be fineles aristocrates on les pendra! 	the aristocrats, we'll hang them!Et quand on les aura tous pendus 	And when we'll have hung them allOn leur fichera la pelle au cul 	We'll stuff a spade up their arrris.

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They can't loose when there are the market, if I did not have a faint hope that justice will prevail their shares are the biggest one way bet in history. :ph34r:

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So.

Governments around the World drop new money into banks and markets and Goldman somehow manages to hoover up most of this new money?

Viva capitalismo.

I could be wrong, but I kind of thought that they were one of the main culprits in causing the crisis in the first place. Now they're making unprecedented profits due to the very problems they contributed to? Nice work.

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One would have thought they would have been a little discreet, all things considered.

They are rather leaning from the windows and crying "we've got all the money".

Still, I guess I'll not do anything about it.

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Goldman Sachs IS the US treasury department. I suppose it's all in day's work for the masters of the universe to reward themselves big fat bonuses.

What happened to all the toxic assets?

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Most of the competition gets taken out. Lehmans Bros, Merryl Lynch, Bear Stearns.

Ofcourse they are going to be make record profits.

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Which single company gave the most to Obamarama's election campaign?

Maybe Lehman should have done the same, then they would have been most favoured.

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i suppose it is, well, several months now since they GS was bailed out by taxpayers. so only fair that its hard-working staff were given the opportunity to reap the rewards.

The thing is, they do nothing productive. They are quite literally shovelling Government paper around, so basically the same as the IRS or HMRC.

So, they buy some Government paper (with Government printed/electronic money) then sell on said Government paper for more Government printed/electronic money.

I tell you what, give me all the paper and I'll put it up on ebay.

The whole thing is a con. Because the system is rigged with fiat money, the Government and GS are allowed to mix up the fake sorry I mean fiat money with the money that is supposed to be used within the real economy to measure the value of real economic activity.

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Which single company gave the most to Obamarama's election campaign?

Maybe Lehman should have done the same, then they would have been most favoured.

Its the US though, bribing politicians is legal and regarded as "free speech". Even for an entity that isn't a person. That Lehman didn't back the right horse to the required degree reflects more badly on their judgement than it does on Goldman Sachs. You have to play by the rules of the game.

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Which single company gave the most to Obamarama's election campaign?

Maybe Lehman should have done the same, then they would have been most favoured.

Lehman were taken out even before Obama got into power.

I know an IT guy who got cut 15% in his rate at GS last year. He was well pissed off.

Wonder if they will put his rate back up when he comes to renew..

Edited by Mammon

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They are quite literally shovelling Government paper around, so basically the same as the IRS or HMRC.

err, no.

as a general question to everyone - Goldman didn't actually get bailed out, did they? (honestly, correct me if I'm wrong)

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err, no.

as a general question to everyone - Goldman didn't actually get bailed out, did they? (honestly, correct me if I'm wrong)

They got AIG bailout money indirectly. Although they were not the only bank to benefit.

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They got AIG bailout money indirectly. Although they were not the only bank to benefit.

Oh dear - Obama-corporatism...

Ron Paul sounds a better bet by the day...

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Just to be clear

They were directly responsible for the financial crisis in part

- they sold toxic assets to investors

- they simultaeneously shorted those same assets

They were directly responsible for corrupting the US Government and Federal Reserve

- Paulson successfully lobbied for abolishing leverage limits in 2004 while Goldman CEO

- Paulson went on to work for GS at the Treasury, all the while leaving his $700m fortune to a blind trust run by GS.

- Liddy got parachuted from the GS board to run AIG by Paulson. His salary and incentives were $0, but he retained over $1m in GS shares. Therefore he was financially incentivised to maximise GS shareholder value, not AIG shareholder value, while working as AIG chief

- Some Fed Reserve Board of New York Governor, another GS director, increased his GS shareholding from the AIG bailout onwards, while part retaining responsibility for overseeing the AIG bailout

They raped the US taxpayer

- with the non-returnable payment of around $12bn made to GS from a taxpayer loan through the giant money laundering machine that is AIG

And their senior executives remain free from prosecution through infiltrating the regulators and lawmakers via campaign contributions, money and placement of GS alumni

These senior executives are criminals who bought the law. They have corrupted the body politic. I imagine there will be dancing on the streets if they end up swinging from lampposts. Justice needs to be served.

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(...)

These senior executives are criminals who bought the law. They have corrupted the body politic. I imagine there will be dancing on the streets if they end up swinging from lampposts. Justice needs to be served.

Very few people have any idea what has happened.

Even here there is confusion.

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They got AIG bailout money indirectly. Although they were not the only bank to benefit.

Exactly.

The general pattern in the market is:

Bank that makes bad decisions, gets to claim on insurance from insurer that made bad decisions. Without the insurer being bailed out the bank would have tanked.

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