GoldmanSachs666 Message Board

According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Tuesday, September 28, 2010

Goldman Sachs Remuneration Experiment

Goldman Sachs salaries for 2010 are not out of sync with other Wall Street salaries (the bonuses at GS are wondrously large, of course, being in the range of $392,00 per employee in the first half of this year) but GS has been targeted for an experiment. What if GS had to lay off half of its workers and instead employ off shore workers, like some corporations have done, in order to save money?

Operation: Reverse Squeeze - Target Goldman Sachs

This post was written by vbierschwale on September 26, 2010
Posted Under: Operation Reverse Squeeze - from Keep America at Work

Lets look at one of my favorites, which is Goldman Sachs.

According to this site that you can read by clicking here, Goldman Sachs has 34,100 employees.

Now if the average salary were $75,000 like most companies and they laid off 17,050 employees so that they could send their jobs offshore and make themselves more profitable, this company would have just trimmed 12 Billion 787 Million 500 Thousand off of their payroll which would make them substantially more profitable and make those paltry salaries and bonuses of the top executives worth while, wouldn’t you say?

However we know that no company is able to trim its workforce by 50 percent, so lets use a 10 percent calculation which is more doable.

This means that they would send offshore 3,410 jobs at an average salary of 75,000 which means the company would save 2 Billion 557 Million 500 Thousand dollars which still is not chump change.

However, just to be safe, lets figure that they hire six employees for every employee they laid off at a salary of 6,000 each.

So now we have just hired 20,460 employees and we are paying them each 6,000 which works out to be 122 Million 760 Thousand Dollars.

So now we have a total of 20,460 employees plus the original 30.690 (had 34,100 and we laid off 3,410) for a total of 51,150 employees for a total savings of 2 Billion 434 Million 740 Thousand Dollars.

Pretty smart, right?

Sure it is devastating Americas communities, but who cares?

Now lets look at it a different way.

Lets say that we pay the lowest employee a salary of $50,000 per year and we pay the vice presidents a salary of $100,000 per year and the CEO a salary of $150,000 per year, and believe me, there are plenty of well qualified people that could step into these positions and do what is right for America and make you, the shareholders a profit.

So lets go back to that page and look at what the top 4 employees make.

Do you realize that they make close to 200 Million Dollars and we haven’t even begun to look at the rest?

Do you realize how much more profitable your shares would be if you were not giving all of the profit to these people?

Perhaps you should be thinking about reducing their salaries to the $150,000 and below level and putting more of that money in your pocket, because after all, whether through a 401K or direct ownership, you actually are the owner of that company which means you should be getting the lions share of the profits and imagine how much more profitable that company would be if you weren’t subsidizing a bunch of prima donnas that are doing everything to destroy the country you love and call home.

Read article here


Anonymous said...

The secret to their success....the emperors(Munger, Buffett, Blankfein etc) are wearing no clothes

Here is the flow of money:

1. Banks mark up their junk paper to full value.
2. This mark up was accounted for in the prop trading accounts.
3. Because it was a mark up there was no cash income but only a balance sheet change and artificial prop trading department profit.
4. Major sickening bonuses were paid to all members of these firms because it was the last draw from the well.
5. TARP money came into the firms to pay for the bonuses.

Anonymous said...

This is the policy of your government and your Fed folks.

Intentional policy.

Utter destitution and possible death for many Americans - 25% or better of the population - for the purpose of protecting Manhattan NY, otherwise known as "Wall Street."

Anonymous said...

Fraud is rampant because they want it...they need it....

Where Are All the Prosecutions From the Crisis?

At a hearing before the Senate Judiciary Committee last week, Senator Ted Kaufman of Delaware summed up the frustration on Capitol Hill with the lack of any identifiable villains for the financial troubles of the last two years. “We have seen very little in the way of senior officer or boardroom-level prosecutions of the people on Wall Street who brought this country to the brink of financial ruin,” Mr. Kaufman said. “Why is that?”

One possible reason for the lack of prosecutions involving senior executives is the Supreme Court’s ruling in Skilling v. United States, involving Jeffrey K. Skilling, the former chief executive of Enron, that limits the right of honest services provision, 18 U.S.C. § 1346, for criminal fraud prosecutions to just those cases involving bribes and kickbacks. It is now impossible to pursue cases against corporate executives for questionable conduct that involved some measure of dishonesty that caused harm to the company unless it also resulted in the person lining his or her own pocket.

Anonymous said...

Guess bonuses will be fine.............

FASB to Fold on Mark to Market

This makes a joke of:

-The companies who wrote the letters
-The SEC
-The accounting profession
-FinReg, as it is proving to be a toothless set of regulations
-The US Treasury. (they did not write a letter)
-The Federal Reserve (who also did not write a letter) the Fed has been pushing on this issue and will not step up to the plate when necessary.

The banks are all afraid of MTM. They want to be able to hide an asset on their books that is worth 50 cents on the dollar and maintain it at 100 cents. When FASB blesses this insanity the banks will just abuse the rule to hide more junk.

Anonymous said...

How many slices did Goldman take?????????

Earlier today, Hope Yen at the Associated Press ran a story noting that income inequality reached a record gap; 14.5 to 1 vs. vs. 1968’s low of 7.7 to 1. (Translation: for every slice of pie a poor person has, someone making over $100,000 has 14.5 slices).

The sad fact is these figures are growing period. The sadder fact is that though this is nothing new, now, it is taking place in a country that has proven it can create trillions of dollars in a Washington minute, when the banking system needs help, but can't figure out how to create a more equitable economy.

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