I equate Goldman Sachs to a rapist who has the audacity to leave a $20 on the garbage can in the alley after he's had his way with you. You kids with me? I certainly hope so.
First we hear that Goldman is on track to pay record bonuses this year after paying off their TARP cash, and now what? Record trading revenue? When does it end? Seriously! I'm almost out of words on this.
Goldman Sachs Group Inc. is on track to beat its 2007 trading-revenue record, enabling it to boost compensation by an estimated 64 percent from last year, according to Bank of America Corp. analyst Guy Moszkowski.
Goldman Sachs has “unmatched risk-taking/risk-management skills in a market that strongly rewards these because of decline in competitor risk appetite,” Moszkowski wrote in a note to investors today. The New York-based firm “appears on track to accrue significantly more comp than ‘08, despite little change in headcount.”
Six months ago, Goldman Sachs was supported by $10 billion from the U.S. Treasury and relied on government guarantees to issue debt. Moszkowski predicts the company will reap $26.45 billion from trading this year, a gain from $25.36 billion in 2007 when the firm shattered Wall Street profit records.
Moszkowski said the firm will set aside 44.2 percent of total revenue to pay compensation and benefits, letting it pay workers $17.92 billion compared with $10.9 billion last year. Goldman Sachs had 27,898 employees at the end of March. If that number remains unchanged and Moszkowski’s compensation estimate is correct, it would mean an average of $642,447 per employee.
So who exactly is rewarding Goldman's behavior? Icing traders in the open market with their firehose of doom and somehow this equates to record trading revenues? I don't get it, I just don't get it.
Speechless. Just speechless.
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