Isn’t it interesting that yet again – the first story we see on this is in the British press. I guess it wouldn’t look to good for Pres. Obama if it was reported here.
Well according to an article in the Guardian, Goldman Sachs is looking to pay out bonuses – the largest in their history. How? Why? Didn’t they receive $10bn in US taxpayer bailouts? Why yes they did. But they are the President’s friends. What seems to be missing in this article is why they aren’t REQUIRED to payback the $10bn before taking huge profits?
After all, weren’t there bus loads of ACORN people driving by AIG’s employees’ houses threatening them and picketing? Why the double standard here?
Don’t get me wrong. I am all for bonuses. All for paying people for their hard work. But GS, it seems, was in on a money maker from the start (easy to know when W.Buffet sinks $5bn into your company).
But why was it a sure money maker?
- “This year is shaping up to be the best year ever for investment banks, or at least those that have emerged relatively unscathed from the credit crisis.
“These banks are intermediaries in the bond markets where governments and companies are raising billions of pounds of new money. There is also a lack of competition that means they can charge huge sums for doing business.”
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.