Below are some standards (other than avoiding embarrassment, that is) that Goldman Sachs might consider before giving away those bonuses. These are the right lessons to learn:
1. Not lobbying for lax regulatory standards;
2. Abstaining from making any campaign contributions for favors from politicians;
3. Making sure Goldman guys refrain from any "public" service that they may feel like contributing especially in Treasury, in the SEC, in the CFTC or any other regulatory body;
4. Getting rid of "dark pools" of derivatives or at least putting them on exhanges;
5. Not speculating on food, oil or any other commodites that they do not own;
6. Not committing fraud through securitization;
7. Not looking for tax loopholes or using foreign tax havens;
8. Avoiding obtaining or using insider information and HFT;
9. Making sure conflicts of interest do not favor Goldman;
10. Being honest, upright and transparent in all dealings.
New Standard for Goldman Sachs Bonuses: Don't Embarrass the FirmRead the whole article here
By Eamon Murphy - Daily Finance
. . . .
But Goldman bankers have a new criterion to consider when striving for a big reward at bonus time -- a standard that even its CEO and chairman Lloyd Blankfein has memorably struggled with in recent years: Citing a company report, Bloomberg reports that "the firm is reviewing employees' efforts to protect its reputation and win clients' trust."
This directive is coming from the management of a bank whose leader once told the Senate "I don't believe there is any obligation" to inform investors when the firm has taken a position against a product it's selling. Only in finance.
According to Bloomberg, Blankfein himself "led 23 three-hour sessions in 2011 and 2012 with partners and managing directors that stressed personal accountability and included a case study about communications within the firm and with clients." In a statement, Blankfein said the company's business standards committee -- created in May 2010 after a cluster of particularly disastrous transactions led to a lawsuit by the Securities and Exchange Commission, and the Senate hearing referenced above -- "is part of a much larger, ongoing commitment to learn the right lessons from recent experiences."