Blog on the Run: Reloaded

Monday, June 22, 2009 8:25 pm

The chair will now entertain a motion …

Filed under: I want my money back. — Lex @ 8:25 pm
Tags: ,

… to plow Goldman Sachs under and then to salt the furrows so that nothing ever grows there again, because these are not the “green shoots” we need:

Staff at Goldman Sachs staff can look forward to the biggest bonus payouts in the firm’s 140-year history after a spectacular first half of the year, sparking concern that the big investment banks which survived the credit crunch will derail financial regulation reforms.

A lack of competition and a surge in revenues from trading foreign currency, bonds and fixed-income products has sent profits at Goldman Sachs soaring, according to insiders at the firm. …

In April, Goldman said it would set aside half of its £1.2bn first-quarter profit to reward staff, much of it in bonuses. It is believed to have paid 973 bankers $1m or more last year, while this year’s payouts are on track to be the highest for most of the bank’s 28,000 staff, including about 5,400 in London.

Critics of the bonus culture in [London] said the dominance of a few risk-taking investment banks is undermining the efforts of regulators to stabilise the financial system.

Vince Cable, the Liberal Democrat treasury spokesman, said: “The investment banks more than any other institutions created the culture of excessive leverage, excessive risk and excessive bonuses that led to the downfall of the financial system. Now they are cashing in and the same bonus culture has returned. The result must be that we are being pushed to the edge of another crash.” …

Until the release of its first quarter profits in April, it seemed inconceivable that a firm owing the US government $10bn would be looking to break all-time records in 2009. …

Last week, the firm predicted that President Barack Obama’s government could issue $3.25tn of debt before September, almost four times last year’s sum. Goldman, a prime broker of US government bonds, is expected to make hundreds of millions of dollars in profits from selling and dealing in the bonds.

So not only did Goldman Sachs help create our current financial clustermess, not only did its alumni in government help it to survive at the expense of rivals, it’s now poised, with major competitors having been knocked off, to take a big cut out of the tax money Americans are spending to clean up the mess it itself made.

The chair rules that the motion carries by acclamation.

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