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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

Saturday, April 2, 2011

Goldman Sachs's Lloyd Blankfein Gets Pay Raise: Company Earnings Drop 38%

One of Goldman Sachs's so-called changes to compensation was to wait and see whether a bonus was deserved before it was given. So when the bank's earnings decrease by 38%, shouldn't Blankfein take a pay reduction too? These egregious pay hikes exacerbate the imbalances in wealth in the US.

So much for Goldman Sachs's regulatory filing in 2010 to "tie bonuses of top executives more closely to the company's financial performance" in order "to deter risky bets." If that were true, then Blankfein should be getting a 38% cut to match the decrease of 38% in GS's earnings rather than being rewarded by a $5.4 million increase.

Goldman Sachs is all smoke and mirrors; prevarication and hogswallow! Blankfein should be considering how to take Goldman Sachs out of the world of Too Big To Fail. Here's a document on that subject for him to consider.

In the meantime, we can condemn Blankfein's new compensation as described by Halah Touryalai in Forbes:

Goldman Sachs CEO Rakes In $21.7 Million In 2010
by Halah Touryalai -Forbes

Goldman Sachs CEO Lloyd Blankfein received a major hike in his 2010 compensation, according to a proxy statement filed with the U.S. Securities and Exchange Commission today.

Blankfein took in $21.7 million last year which includes his salary, bonus, realized options and stock awards.

That’s a huge bump in pay compared to last year when he received $1.13 million for his work as head of the nation’s 5th largest bank.

The $21.7 million includes a salary of $600,000 and a cash bonus of$5.4 million- Blankfein’s first cash bonus in three years. It also includes $6 million in realized options awards and about $9 million in realized stock stock awards.

The CEO saw a hefty raise even though Goldman posted a drop in profits of 38% and a drop in revenue of 13% in 2010. According to its 2010 earnings report, Goldman’s employees took a 5% hit in salary and bonuses.

Read the entire article here


Anonymous said...

It seems everyone talks out of two sides of their mouths...its the culture...

Buffettgate: Berkshire Hathaway's Problem at the Top

Berkshire Hathaway has a bigger problem than Sokol's actions. Its reputation has revolved around the lip-service paid by Warren Buffett to a high standard of corporate governance. His actions and attitude to this matter raise serious questions for the future of Berkshire Hathaway. The moral tone set at the top is now being publicly questioned as well as his seeming support of Sokol's actions:

Anonymous said...

As per Mr. Buffet, isn't this his highly coveted bank?.ie Wells Fargo and didn't ex goldman exec Robert Steel run Wachovia for a while?

How a big US bank laundered billions from Mexico's murderous drug gangs

As the violence spread, billions of dollars of cartel cash began to seep into the global financial system. But a special investigation by the Observer reveals how the increasingly frantic warnings of one London whistleblower were ignored

On 10 April 2006, a DC-9 jet landed in the port city of Ciudad del Carmen, on the Gulf of Mexico, as the sun was setting. Mexican soldiers, waiting to intercept it, found 128 cases packed with 5.7 tons of cocaine, valued at $100m. But something else – more important and far-reaching – was discovered in the paper trail behind the purchase of the plane by the Sinaloa narco-trafficking cartel.

During a 22-month investigation by agents from the US Drug Enforcement Administration, the Internal Revenue Service and others, it emerged that the cocaine smugglers had bought the plane with money they had laundered through one of the biggest banks in the United States: Wachovia, now part of the giant Wells Fargo.

Anonymous said...

Inside Job, Oscar-Winning Documentary, Now Online (Free)

In late February, Charles Ferguson’s film – Inside Job – won the Academy Award for Best Documentary. And now the film documenting the causes of the 2008 global financial meltdown has made its way online (thanks to the Internet Archive). A corrupt financial industry, its corrosive relationship with politicians, academics and regulators, and the trillions of damage done, it all gets documented in this film that runs a little shy of 2 hours.

Anonymous said...

Inside Job, Oscar-Winning Documentary, Now Online (Free)

Anonymous said...

Of the 1%, by the 1%, for the 1%
Americans have been watching protests against oppressive regimes that concentrate massive wealth in the hands of an elite few. Yet in our own democracy, 1 percent of the people take nearly a quarter of the nation’s income—an inequality even the wealthy will come to regret.

The justification they came up with was called “marginal-productivity theory.” In a nutshell, this theory associated higher incomes with higher productivity and a greater contribution to society. It is a theory that has always been cherished by the rich. Evidence for its validity, however, remains thin. The corporate executives who helped bring on the recession of the past three years—whose contribution to our society, and to their own companies, has been massively negative—went on to receive large bonuses. In some cases, companies were so embarrassed about calling such rewards “performance bonuses” that they felt compelled to change the name to “retention bonuses” (even if the only thing being retained was bad performance).

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