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Bruised Goldman Slashes Bonuses As They Slide Into Red

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GOLDMAN Sachs is planning to slash bonuses to almost zero amid growing expectations that the Wall Street bank is about to slide into the red for only the second time in its history.

The market meltdown that began in August has hammered the revenues of all the big global investment banks.

Analysts have been slashing their forecasts for Goldman's third-quarter results, due on October 18, with most now expecting it to report a loss.

Morgan Stanley, its closest rival, could also fall into the red.

Goldman's senior executives are determined to prove that the bank can continue to generate bigger returns for shareholders, despite the market turmoil.

They have made an internal commitment to ensure that no more than 35 per cent to 45 per cent of its revenue is paid to staff -- a lower proportion than any other Wall Street bank. The ratio of staff pay to turnover is the key metric used by analysts to determine the efficiency of an investment bank.

Cutting bonuses to the bone is one of the few tools that Goldman can use to keep the ratio under control. It has already cut salaries for its London partners and is also cutting thousands of jobs.

Either the Giant squid is in trouble or this is a great leak to announce a small profit in a few weeks time.

They won't be happy with the Bernanke, if only he'd committed to more QE the bankers could have had a bonus.

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They're obviously worried about being attacked by pitch-forks.

Obama's the only person keeping the lynch mob at bay.

Bankers shun Obama

"You take the number of people making a million dollars or over on Wall Street and you can fill a very large auditorium," Mr Buffett said. "I think the president felt, 'My God, look at all the things we did for business, and they're unappreciative, and I'm all that stands between them and the pitchforks'."American anger against Wall Street continues to grow, with hundreds of anti-capitalist activists being arrested over the weekend as they marched against "corporate greed".

The protesters were arrested on Brooklyn Bridge for blocking traffic as the protests organised by the Occupy Wall Street campaign entered a second week.

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Blankfein needs to up the ante - turning up at the next fed reserve meeting wearing an explosive vest may do the trick.

"You've seen the bust, now see the boom' snarled the bonus deprived Investment banker as he pulled the switch on a billion dollar derivatives debt bomb. :lol:

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FUD - they know they are loathed and that there is growing Public anger in the US against them and all the Public money they have got.

They are beginning a FUD campaign IMPO to try and make out that they are suffering hard times.

The bonuses will come.

It will be interesting to see if it sparks off protests over here......

(Oh hang on....strictly cum dancing is about to start; lets watch that instead)

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Must be great being a share holder in GS knowing that 45 percent of profits go on bonuses before dividends.

Quite a lot of GS's big shareholders are big firms whose bosses, when looking to justify big deals for themselves, find it more than a little handy to be able to point at the big bucks being raked in at GS.

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Either the Giant squid is in trouble or this is a great leak to announce a small profit in a few weeks time.

They won't be happy with the Bernanke, if only he'd committed to more QE the bankers could have had a bonus.

...well there is a bit of logic here in the sub heading ...nobody gets a bonus if the company is in the red....British Tax Payers Owned Banks ...please note..... :rolleyes:

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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