Goldman to make record bonus payout

total trash. my friend's team at GS IBD's TMT had 12 people, 7 just got laid off over the last two months. small number of groups are making money. a majority of them are still struggling...

Now Real Estate will go up forever!! Buy now or be priced out forever!!

- President Alpine292

wow..how times have changed. Noah any comment?

I have learned to never doubt Buffet. Remember when Buffets Goldman warrants were under. Everyone is like Buffet is done! As always he is the winner in the end. Look at him now.

Anyone who believes that the investment banks will do the right thing voluntarity is only deluding themselves.

WHat are you talking about with Buffet? No one thought he was done - everyone thought he'd inked a fabulous deal ... the terms of which no one else would ever be able to structure.

OK, how is this total trash? Just because your friend's team sucks, doesn't invalidate the hard facts presented in the article. Actually, given the culling of competition (Lehman, gone... Bear, gone... ML, gone...) it shouldn't really come as any surprise that the remaining financial institutions who were stonger than the pack should have bumper profits. Money, which is essentially a gov't loan, enters the system through large, multinational financial institutions - that is why they are joined so closely at the hip. With the issuance of record amounts of "money", it would stand to reason that institutions with the largest global reach benefit greatly.

What this does for RE is anyone's guess, but I for one predict a strong Spring '10.

still doesnt matter..even with 5 or 7 banks making money, you are still talking about a significantly reduced number of people. the people at the major banks who are still getting paid are the same ones that have been getting paid all along. theyve alreay made thier purchases..or maybe you can count on a few upgrades here and there. sorry kids..keep on reachin. maybe those shares of dr. koop.com will come back

Not really. Goldman is Goldman and look at how the fed engineered the system for banks and has been IBs to make tons of money to recapitalize! Accounting tricks and all. Nobody should be shocked here. I never denied this, and publicly discussed how banks were having a great quarter back in March. It was engineered that way to earn their way a bit out of this mess.

I dont think this will be across the board and sweeping regulatory changes are coming, so expect lower bonuses and higher salaries and less incentive by traders because their upside will be far limited when comparing to the years of 2004-2007 or so before this mess cratered. I see this as a non event, but perhaps media will exxagerate it as it usually does

How has competition been culled?

Barclay's kept most of Lehman employees - specifically, IB was kept almost completely in tact. BAC also kept most of ML IB staff. There was little overlap for the acquirers in terms of products and geography. There was more integration with JPM and Bear, but that was done almost 9 months ago.

The earnings are coming directly from the Fed - cost of capital for all banks are artificially low and lending rates, while lower, aren't down as much - thus allowing banks to earn from the spread.

Trading and banking are not responsible for this. I agree with urbandigs.

Not surprised that Goldman found a way to make some money.

But, seems like most of you missed the HUGE line here..

"Goldman Sachs said it reviewed its bonus scheme last year and switched from a system of guaranteed rewards that were paid over three years to variable payments that tied staff to the firm."

And, of course... the little matter of the recession worsening...

http://www.streeteasy.com/nyc/talk/discussion/12336-world-bank-recession-has-worsened

Goldman Disputes Bonus Report

"..."If the reporter thinks we're going to have the best year ever, he must be psychic," van Praag wrote in an email message to TheStreet.com, noting the bank hasn't even finished its second quarter...."

As a public company it is literally impossible that the events in TOP could or woudl have taken place. Never, no way, no how.

http://www.thestreet.com/_yahoo/story/10523080/1/goldman-disputes-bonus-report.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

Noah,
The media is all over it as you hinted. The "record bonus" headline is on Yahoo's homepage for all the world to read. It's all about perception.

Goldman Sachs controls the government, Paulson and Geitner are insiders who are helping their pals get rich. We should remember that not only is insider information generated and used by the likes of a Goldman Sachs (working two sides of trades, and paying the fees of the "independent" bond analysts ) but its influence amongst the coterie of large bank owners of the "Federal " Reserve is also enormous. This private ability to know and to direct "governmental" monetary and fiscal policy is then a Fed insider%u2019s dream, and bond dealer%u2019s paradise.
How much a Goldman Sachs and its brethren profit off their positions as Fed insiders, stockholders and, as with Goldman, whose "former" personel serving as the Secretaries of the Treasury" is unknown. This is largely because we are kept from looking, and the private Fed is exempt from the Freedom Of Information Act. Paulson eliminated Goldmans main competitor when they let Lehman die!!!!