Cafferty File: Goldman Sachs may make its largest bonus payouts ever
From the Cafferty File:
Goldman Sachs is on track to make the biggest bonus payouts in the company’s 140-year history — according to a report in the British newspaper ‘The Guardian’. Goldman staff in London were reportedly told that they could expect record bonuses if the company — as predicted — has its most profitable year ever.The investment bank’s earnings are up for several reasons — including a lack of competition, along with increased revenue from trading foreign currency, bonds and fixed income products.
Just last week Goldman Sachs repaid the government the $10 billion in TARP money it had received — which would leave it free to do whatever it wants. Yet the company is denying these reports about record bonuses, calling them “pure speculation.” They say they won’t know what bonuses will be until the end of December.
But the company’s CEO told lawmakers recently that the firm is obligated to “ensure that compensation reflects the true performance of the firm and motivates proper behavior.”
Critics say the culture of excessive risk and excessive bonuses is what brought down the financial system in the first place. Also, in light of the ongoing recession, record unemployment, foreclosures and a whole range of economic woes… some might wonder if this would be the best time for Goldman to pay out record bonuses.
It’s believed the firm paid $1 million or more to nearly 1,000 bankers last year.
Here’s my question to you: What message would it send if Goldman Sachs makes the biggest bonus payouts in its 140-year history?
Jerry from Toronto writes:
I don’t see an issue with bonuses, what I do see are the greedy not learning any valuable lessons. The next time the market fails do not give them a pass and let them collect $200; the Monopoly money has run out. They can stand in the bread line with the rest of us.
Martin from France writes:
It would send a great message that not all companies are struggling and there is hope ahead! Some companies can manage through these times well. Companies (such as British airways) are asking employees to work for free, take unpaid leave etc when times are tough. We’ve got to expect the reverse — when times are good, reward the staff.
Walter writes:
So Goldman Sachs may have its “most profitable” year ever, leading to the payment of “record” bonuses. Has everyone forgotten about the $13 billion of taxpayer money funneled to Goldman through AIG during the last 9 months? Sure, Goldman paid back the $10 billion of TARP money it took through the front door. But the $13 billion laundered through AIG and taken in the back door would appear to have gone straight to the bottom line.
Steve writes:
Massive bonuses in the face of this difficult recession will further alienate the average, hard-working people who have had to tighten their financial belts, or who may have lost their jobs entirely. If society begins to see most bankers as greedy and out-of-touch with the common person, there is a growing chance that legislation may emerge that limits or penalizes massive compensation and bonuses. Bankers may be biting themselves in the rear end!
Marc from Virginia writes:
It’s still a free country for now. They can pay their execs whatever they want.
Nereida writes:
Goldman Sachs must be doing something right if they paid back their loan and managed to pay off bonuses. I’m currently unemployed and would love to return to New York. Whom should I address my resume to?
I don't think I have ever in my life seen such absolute hubris!! Who in the h*ll do these shmucks think they are??? Anyone else looking for torches and pitchforks??
if? what do you mean if jack? we all know they're going to do it. they don't give a rat's ass about middle america, no one does, bankers, wall street, politicians, no one.
it's these guys that the pope was referring to when he warned of the dangers of moral relativism?
This is the best thing that could have happened for our side! The US public is by, and large, Fat dumb and watching TV. But they're still feral enough to want to kill people like this. Let's sit back and watch the slaughter. Pop corn, anyone?
"I never meant to say that the Conservatives are generally stupid. I meant to say that stupid people are generally Conservative.”
- John Stuart Mill
Buffet made a billion on this deal.
is I should vote for anyone but an incumbent. The Dems in the current Congress are clueless and toothless. The Republicans are worse. The responses I've gotten from Boxer, Feinstein, and Davis on financial issues are unacceptable to date. If they won't reign in rogue corporations like Goldman-Sachs, I'll vote for someone else who might.
I have been doing that for almost thirty years.
I never vote for the incumbent! They are crooks and liars and don't deserve a vote.
republicanism is a mental illness!
By MICHAEL HUDSON at Counterpunch here
It is a long one but it is well worth the read.
Obama wants the Fed as regulator numero uno and Larry Summers wants to be Fed Chief.
What is wrong with this picture?
Glenn Greenwald here
From Summers personal financial disclosure:
.
Greenwald calls the $135,000 from Sachs to Summers an 'advanced bribe' and that'it's paying off in spades'.
An understatement to be sure.
statusquObama, change you can only pretend in
Kudos on calling attention to the Michael Hudson article. It is such a great read. And, really it isn't that long considering the subject at hand (most people could write volumes concerning this economic debacle).
Again I ask, what ever happened to that American ideal: separation of powers?
Here is a list of elected people taking payoffs to cheat the American people and the amounts of bribes being taken. This is just from health care and insurance.
It is mind boggling to think how much these people are taking from others!
Arlen Specter (R-D- PA- $4,026,933)
Max Baucus (DLC- MT- $2,833,731)
Mitch McConnell (R-KY- $2,758,468)
And when you just go right to Big Insurance, the non-presidential candidates who got the biggest legalized bribes were the 7 senators who have been tasked with the job of killing single-payer:
Ben Nelson (DLC-NE- $1,196,799)
Max Baucus (DLC- MT- $1,184,113)
Joe Lieberman (DLC- CT- $1,036,302)
Arlen Specter (R-D- PA- $1,035,530)
Chuck Schumer (D-NY- $981,400)
Mitch McConnell (R-KY- $929,207)
Chuck Grassley (R-IA- $884,724)
We need to investigate and prosecute these criminals now. Severe jail terms are in order for these criminals!
has been at the center of this crisis as the major player since day one. I think it would behoove anyone writing about them to investigate and publish as many details about their actions, especially since this crisis started.
For one, it's pretty obvious that G-S politically engineered the failure of Lehman Bros. to get rid of them as competitors--which this article glosses over while revealing. And then, of course, there's the deeply incestuous relationship between G-S and Treasury. These actions and relationships are truly egregious and one wonders how deep this goes, and also why neither the MSM or many in the non-MSM are ignoring it, willfully or otherwise.
MY RETIREMENT back on track. George W. Bust and the Iraq War FORCED me back onto the rolls of the gainfully employed. My wife sez I'm gonna have to work for another five years to be back where we shoulda been eight years ago. GOOD... let's all start makin some money again.
but they still have jobs and 401k's. The little lambs have to see the guillotine and hear some screams before they will get off their fat woolly asses.
as soon as they give the record bonuses.
And they should owe $13 billion more if they want to think about getting out of the compensation regulations anyway:
http://www.businessweek.com/investing/wall_st...
If Goldman Sachs CEO Lloyd Blankfein wants to put his money where his mouth is, he won’t stop with just giving back the $10 billion in federal bailout money the investment firm got last autumn. He’ll also offer to return some of the $13 billion it got from the government by way of the AIG bailout.
Who's gonna stop 'em ? Timmy? Benny? Andy? No one is gonna stop 'em. We are screwed no matter what they do, or don't do.Get used to it.
He is starting to worry me and I was a big time supporter. He aint changong anything. Its buisness as usual. He better start living up to his promisses and start kicking some ass.
I keep wondering what it's going to take for the pitchforks to come out.
There's always free cheddar in the mousetrap, baby. - Tom Waits
They didn't take any bailout money and what they got from AIG was what was legally owed them and would have been given them in the event of an AIG bankruptcy.
What are you guys complaining about. They have a perfect right to pay their people what they want.
"They don't care about Middle America," Oh the narcissism. Everyone should care about me. Give it up. I don't care about middle america and since when does a company have any obligation to?
hell didn't G-S just push for the bankruptcy of AIG instead of having their insider henchman whathisname ask the gov for them? OF course! Because the bankruptcy court probably wouldn't have given them whole hog payback would've they?
Sure, they can pay their people whatever they damn well please. They can pay them in golden submarines, guns and their own private islands if they want. In fact, I think that's a great idea.
And no they really don't need to bother with middle America, accept for the fact that its mostly middle america's money that they are getting fat on. Middle America might decide not to put its money with GS or related firms, I dunno.
The problem is that you pricks are so narcisstic that you believe you've got everyone shoved right up your ass, but unfortunately for you, everyone you shoved up there is still asleep.
Your bowels have been really stinking as of late and I'm afraid the portion of Middle America you think is stuck up your backside will soon wake up and rip you and your peeps a new one.
"And no they really don't need to bother with middle America, accept for the fact that its mostly middle america's money that they are getting fat on."
First off, its "except" not "accept."
Secondly. Do you really even know if thats true? Do you know where GS' revenue comes from or is that just a nice rhetorical flourish you thought you'd throw in there for fun?
And if you feel like having sympathy for Middle America just remember who most Mid West states usually vote for.
Except for the brain dead religious kooks in Nebraska, Kansas, and Oklahoma, most of middle America voted against your psychotic GOP fascist heroes.
But by all means, keep on cheering for the assholes who have trashed the country and stolen it blind. The circular firing squad that you and the rest of the GOP voters belong to is getting smaller everyday.
And how do we know where their money came from? Are you freaking serious? Why do you think they needed a bailout? God damn, you wingnuts are dense as lead and absolutely clueless!
Your not very bright, are you?
Rush Limbaugh is what a smart person thinks a stupid bigot sounds like.
...they didn't take any bailout money. They were a counterparty to AIG but they were only one of many. Even in the event of a bankruptcy they would still have been paid. now they are profitable and paying their people as they have a perfect right to do.
And why do you think they are psychotic GOP assholes. All demographic data showed that people who work in finance in New York voted heavily Democratic. You're not making much sense. And you have no idea who the major investors are in G-S you;re just spinning a bunch of populist garbage to no end and with as many personal insults thwon in as you can muster.
You people behave exactly like the commenters at Malkin's blog, Redstate, and Free Republic. You think the Freepers are extreme? There are people here advocating using snipers and starting riots. And I'm psychotic?
... maybe if you troll hard enough, GS may offer you that janitorial position you always wanted.
Keep at it!
sad deluded troll - I'm certain its a captain of industry (Oh sorry, I forgot, we no longer HAVE American industry!) who posts blog comments, in between tee times and tea times, and romps on the polo field...sad indeed
Wow. I have officially burned out on all of the financial mongo-big behemoth company swallowing up all of our money, giving it all to a few lucky people then . . .
Crap -- I can't even muster the energy to finish the comment. I'm due for a new mattress. I'm sure I can keep the old one instead of throwing it out -- it's the kind with the metal springs in it, so there's plenty of storage space. No one will know to look there . . right?
I kinda want to know what the hell it is that Goldman Sachs actually MAKES. They're having such a profitable year? From WHAT? Selling WHAT? Doing WHAT? Producing WHAT? Where is all that money coming from?
I learned a little factoid today that rather surprised me. Y'know those pilots who managed to land that Airbus on the Hudson River with not a single loss of life and only two people injured? Did you know that the F/O on that flight is only making half the salary he used to make, and works a second job just to maintain his ordinary middle class life? Captain Skiles (who had been downgraded to First Officer due to company cutbacks and pilot furloughs) testified before Congress after that amazing landing at just how hard it's gotten to make a living as an airline pilot. A bloody airline pilot, fer chrissake! There are ex-pilots making more money driving Greyhound busses, no exaggeration. http://www.youtube.com/watch?v=NKQesBlgw1Q
In 2007, William Douglas Parker, the CEO of US Airlines, the company that owns the plane Capt's Sullenberger and Skiles ditched into the Hudson, made $4,257,105 in total compensation, down from his previous year's income of $5,873,343. This year, it dropped a further 28%, the poor, poor man. The pilots of Flight 1549 saved the lives of 155 people through years of experience and skill. Whatever they're paying these guys, they've earned every penny and probably deserve a lot more. So just what the hell did William Douglas Parker do to warrant a pay package of over four million dollars?
That's just one company, one fairly small insignificant company compared to something as monolithic as Goldman Sachs. And at least I know what US Air does - it flies planes. I can't say I have the faintest idea as to what Goldman Sachs does.
I don't have a degree in economics or business, so no doubt the exact nature of how this vast corporation (which employs less than 25,000 people, by the way) can generate literally billions of dollars in profits while vast majority of America and the rest of the world struggles just to keep their roofs over their heads and food in their mouths while they watch their children's futures slip further and further away will always remain a complete mystery to me; I have a better chance of understanding quantum particle physics than the arcane - and largely, I suspect, corrupt - world of finance.
But I do understand anger. The sort of gut-deep irrational take-no-prisoners anger that cost Marie Antoinette her head. And I'm feeling far too much of it right now...
They produce e-mails that say they are worth like - a gagillion dollars!
Then they get e-mails back saying that's like - totally awesome!
That allows them to then produce $25,000,000 bonuses for themselves for a job well done. Because only super-genuises like them can perform these tasks that require other worldly skills and brains.
Rush Limbaugh is what a smart person thinks a stupid bigot sounds like.
... they create money out of thin air. The hard work seems to come from having to make other people believe that money is real.
That basically is capitalism: Make money out of thin air, and make other people work real hard to fill in the gap in credit you just created. It's a pretty sweet gig if you can get it...
Nada! zip! Nothing tangible. They "make" 0's and 1's in a computer - that is it - nothing more. They are a pox and a pestilence. Were you to ask them to "make" something, they would stare at you with dull and dead eyes. The "company" is run by just more pasty faced old cancer ridden white men. So a pox on their house!
All wealth is created by production of goods amd services. Goldmann-Sachs does not produce anything. Only thing they "produce" is debt. Real Estate debt, that's about it. For economy, they are deadweigth loss.
... was no accident.
Corruption favors the wealthy.
They don't give a shit about what we think, and the Obama administration won't do a damn thing about it. Little Timmy and Larry the derivatives guy will see to that; and Obama will listen to their bullshit at his own peril.
How about 94% marginal tax rates after the first five million? That would effectively put an end to this bullshit, just like it use to before the psychotic republicans and bluedogs screwed the pooch.
Rush Limbaugh is what a smart person thinks a stupid bigot sounds like.
Hmmm...I wonder if the revolving door between Wall street and the US government had anything to do with this.
Do you think Bernanke, Paulson, Geithner, Summers, Greenspan, or Kashkari would know anything about this? Maybe...possibly?
I knew the moment that Obama chose Geithner and Summers we would be screwed. Both of these people created the situation in which we find ourselves.
as is on the Pentagoon. Only that one has two stops from the "goon" Whats behind door number 1 Monty? Well, ex General, you have won an all expense paid trip to the golf course, working for a major MIC player, where you will play golf and party and bring in contracts from your old DoD cronies! And if you choose door number 2, (although you will have to wait a few years) is a nice cushy goverment job!! Yeah, I used to work alot of DoD and Iv'e seen this over and over and over again... So on the commercial side, their is one less door -but its the same process. Blech!
Your question: " What message would it send if Goldman Sachs makes the biggest bonus payouts in its 140-year history?"
The answer: The money it funneled into Obama's campaign was well spent.
To me, this is infuriating. But its sooo, "Obama". Fix the banking mess without "Fixing the banking mess" create new regulations that don't put back the old regulations that caused the whole mess, and foreclosure help without helping those in foreclosure. Next is: climate legislation without addressing climate change or carbon emissions, and health care that is still "too expensive and unattainable." ANYBODY NOTICING A PATTERN HERE?? Hey guys, wake up! Obama is NOT OUR MAN!
If he continues down this republican-lite path he has chosen, I won't vote for him again.
Rush Limbaugh is what a smart person thinks a stupid bigot sounds like.
I would not lose any sleep at all if Goldman Sachs burned down to the ground and the fascist ceo's experienced mob justice...nope...wouldn't lose ANY sleep.
"Martin from France writes:
It would send a great message that not all companies are struggling and there is hope ahead! Some companies can manage through these times well. Companies (such as British airways) are asking employees to work for free, take unpaid leave etc when times are tough. We’ve got to expect the reverse — when times are good, reward the staff."
Umm they aren't struggling because they are dirty thieves. Yeah let's reward them while all the honest businesses shut down. *rolls eyes*
that is friggin DUMB as hell, lol!
Stop the stupid. It hurts. They get 25 billion in bailouts in order to survive, and now we should reward them?
But auto workers who worked their asses off in factories for 30 years just need to deal with the fact they are going to lose everything because.....well, that's just the breaks.
Where and how did they make this money? Buying back dirt cheap stocks that lost all of their value because of companies like Goldman Sachs? This is so disgusting, that I know it must be true. Because you could not make this bullshit up.
Rush Limbaugh is what a smart person thinks a stupid bigot sounds like.
http://www.youtube.com/watch?v=IWO4JxM3nDc
I think we need some snipers set up outside Maiden Lane, Nuff Said!
Goldman Sachs paid back the TARP funds. If they still have enough money to pay out bonuses, that's THEIR BUSINESS! NOT YOURS! Obviously what they are doing is working and they are successful at it, which only shows that Capitalism Works. If you assume that just because somebody is a successful CEO they are a crook, you are an ignorant jealous asshole and belong in some communist regime, not here.
23 billion minus 10 billion equals 13 billion of tax payer money laundered into executive bonuses.
Take a remedial math class before you try your hand at Econ 101.
There should be a crooks and liars award.
1. If we are a free country, and an enterprise is a legally operating entity, then only management and shareholders get a say in compensation. Do I hear people fussing about rock stars, movie stars, football players or basketball players? Then shut up already.
2. Please make a chart that shows who with Goldman Sachs connections is also connected to this administration. Then widen it to just include Wall Street and Bank moguls. Then fuss some more.
Eat The Rich
Pensioners 'kidnap and torture' financial adviser
http://www.telegraph.co.uk/news/worldnews/eur...
You folks might want to read this! Goldman Sachs has been a criminal enterprise for a very long time. Now , with all of graduates from this enterprise in the government they have some real protective JUICE.
My previous post stands! There is no way that these bums are going to be punished with their bought & paid for friends in congress to protect them.
And oh I forgot, the news media is compliant and fixated on bullshit.
Pay no attention to the man behind the curtain as we get robbed in broad daylight.
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