Goldman Readies Record Bonuses
Recession doesn't curb bank's bounty
By Matt Cantor, Newser User
Posted Jun 22, 2009 8:07 AM CDT
Bank execs testify on Capitol Hill in Washington, Wednesday, Feb. 11, 2009, before the House Financial Services Committee.   (AP Photo/Manuel Balce Ceneta)

(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.”

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Observer
Jun 22, 2009 4:28 AM CDT
Skunks do not change their stripes. I live on commissions so I appreciate the bonus model but the scale of the financial bonuses is extreme. How much value is created when these guys M&A their way across the universe. Sometimes none. MOre often they take away wealth and give back nothing. How many giant mergers have actually destroyed wealth - too many to count. But the Bankers got their fees anyway. I should be selling yachts.