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.
Staff in London were briefed last week on the banking and securities company's prospects and told they could look forward to bumper bonuses if, as predicted, it completed its most profitable year ever. Figures next month detailing the firm's second-quarter earnings are expected to show a further jump in profits. Warren Buffett, who bought $5bn of the company's shares in January, has already made a $1bn gain on his investment.
Goldman is expected to be the biggest winner in the race for revenues that, in 2006, reached £186bn across the entire industry. While this figure is expected to fall to £160bn in 2009, it will be split among a smaller number of firms.
Barclays Capital, Credit Suisse and Deutsche Bank are among the European firms expected to register bumper profits, along with US banks JP Morgan and Morgan Stanley following the near collapse and government rescue of major trading houses including Citigroup, Merrill Lynch, UBS and Royal Bank of Scotland.
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1 comment:
Why would anyone be surprise when the US Treasury was open to Goldman Sachs to steal as much as they wanted. Appointing Goldman Sachs CEO Hank Paulson who knows nothing about Economy but knew how to follow directions. Notice how no one in the press or the Law Makers will tell the truth about how the White House gave Trillions of dollars to Goldman Sachs. Now what's funny is we gave Goldman Sachs a bailout to add to the bonus money that is being given out to those who went along with the 8 year crime. Yes as we see millions of Americans without a job and Republicans say it's all President Obama's fault. Well Goldman Sachs and other Wall Street Business are laughing their butts of at how easy it was to steal from the US taxpayers. Who know Americans might wont a corrupt President again and vote a Republican like Rush Limbaugh as President in 2012.
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