Goldman Readies Record Bonuses

Recession doesn't curb bank's bounty

By Matt Cantor,  Newser Staff

Posted Jun 22, 2009 8:07 AM CDT

(Newser) – A wildly successful first half is pointing to the best year ever for Goldman Sachs, and that means record staff bonuses in the midst of the recession, the Guardian reports. Revenues have soared at the bank, which now has little competition; it promised in April that half of its nearly $2 billion first-quarter profit would go to employees. But some fear Goldman’s bonus plan could be dangerous.

Said a British MP: “Investment banks 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 we are being pushed to the edge of another crash.”

Bank execs testify on Capitol Hill in Washington, Wednesday, Feb. 11, 2009, before the House Financial Services Committee.   (AP Photo/Manuel Balce Ceneta)
A man washes a cobblestone street beneath Goldman Sachs headquarters, center, in New York's financial district, Tuesday, Sept. 16, 2008.   (AP Photo/Mark Lennihan)
In this Sept. 25, 2008 file photo, Lloyd C. Blankfein, CEO of Goldman Sachs, speaks at a luncheon at United Nations headquarters.   (AP Photo/David Karp, file)
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