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From: 

Subject: Goldman Sachs ready to hand out £7bn salaryand bonus package...
afte r its £6bn b ail-out

 

Goldman Sachs ready to hand out £7bn salary and bonus package... after its
£6bn bail-out

 

http://tinyurl.com/6cqew3 




Goldman Sachs ready to hand out £7bn salary and bonus package... after its
£6bn bail-out


By Simon
<http://www.dailymail.co.uk/home/search.html?s=y&authornamef=Simon+Duke>
Duke
Last updated at 8:55 AM on 30th October 2008

*
<http://www.dailymail.co.uk/news/worldnews/article-1081624/Goldman-Sachs-rea
dy-hand-7BILLION-salary-bonus-package--6bn-bail-out.html#comments> Comments
(109) 
*
<http://www.dailymail.co.uk/news/worldnews/article-1081624/Goldman-Sachs-rea
dy-hand-7BILLION-salary-bonus-package--6bn-bail-out.html> Add to My Stories 

Goldman Sachs HQ

U.S. investment bank Goldman Sachs HQ which has set aside £7bn for bonuses
and salaries this year 

Goldman Sachs is on course to pay its top City bankers multimillion-pound
bonuses - despite asking the U.S. government for an emergency bail-out. 

The struggling Wall Street bank has set aside £7billion for salaries and
2008 year-end bonuses, it emerged yesterday. 

Each of the firm's 443 partners is on course to pocket an average Christmas
bonus of more than £3million. 

The size of the pay pool comfortably dwarfs the £6.1billion lifeline which
the U.S. government is throwing to Goldman as part of its £430billion
bail-out. 

As Washington pours money into the bank, the cash will immediately be
channelled to Goldman's already well-heeled employees. 

News of the firm's largesse will revive the anger over the 'rewards for
failure' culture endemic in the world of high finance. 

The same bankers who have brought the global economy to its knees seem to
pocketing the same kind of rewards they got during the boom years. 

Gordon Brown has vowed to crack down on the culture of greed in the City as
part of his £500billion bail-out of the UK banking industry. 

But that won't affect the estimated 100 London partners working at Goldman
Sachs's London headquarters. 

The firm - known as Golden Sacks for the bumper bonuses it pay its top
bankers - is expected to cut the payouts by a third this year. However,
profits are 

falling much faster. Earnings have plunged 47 per cent so far this year amid
the worst financial crisis since the Great Depression. 

This has wiped more than 50 per cent off the company's market value.

 


More...


*       Two
<http://www.dailymail.co.uk/news/article-1081605/Two-million-savers-face-poo
rer-retirements-Standard-Life-slashes-customer-payouts-increases-exit-penalt
ies.html>  million savers face poorer retirements after Standard Life
slashes customer payouts 
*       Cuts
<http://www.dailymail.co.uk/news/article-1081600/Darling-hints-surprise-tax-
cuts-Labour-moves-outflank-Tories-recession.html>  and tax rises to follow
recession ... but only after election, hints Darling 
*       FTSE
<http://www.dailymail.co.uk/news/article-1081387/FTSE-closes-8-1-best-day-tr
ading-US-cuts-rate.html>  closes 8.1% up in third best day of trading ever 
*       Volkswagen
<http://www.dailymail.co.uk/news/article-1081442/Volkswagen-shares-halve-Por
sches-12-6bn-sting-costs-bungling-hedge-funds-billions.html>  shares halve
after Porsche's '£12.6bn sting' costs bungling hedge funds billions 
*       World's
<http://www.dailymail.co.uk/news/worldnews/article-1081732/Worlds-biggest-ai
rline-created-Delta-buys-Northwest-1-6bn.html>  biggest airline created
after Delta buys Northwest for £1.6bn 

The news comes after it was revealed that even bankers working for collapsed
Wall Street giant, Lehman Brothers, could receive huge payouts. 

Its 10,000 U.S. staff are expected to share a £1.5billion bonus pool. The
payouts were agreed as part of the rescue takeover of Lehman's American arm
by Barclays last month. 

The blockbuster handouts caused consternation among London employees of the
firm, many of whom have now lost their jobs. 

Even workers at the nationalised Northern Rock will scoop bonuses worth up
to £50million over the next three years. 

The extraordinary handouts include more than £400,000 for Rock's boss, Gary
Hoffman, who is likely to become Britain's best-paid public sector worker. 

The majority of Northern Rock's 4,000 workers will receive four separate
bonus payments - the first of 

which will be made next March. Staff will get an extra 10 per cent on top of
their basic salary. 

Lloyds TSB also intends to pay its employees bonuses despite taking a £5.5
billion emergency cash injection from the taxpayer. 

News of Goldman's bonus plan came as the firm promoted 92 of its bankers to
partner level. A quarter are based in Fleet Street, London. 

Partnership is the holy grail of the investment banking world as the
exclusive club shares around a fifth of the firm's total bonus pool. 

New York Attorney General Andrew Cuomo last night warned that Wall Street
firms taking government-money risk breaking the law if they hand the cash
straight back to employees. 

Cash-strapped workers are being penalised by pay rises which are far below
the soaring cost of living, research reveals today. 

Despite inflation soaring to a 16-year-high of 5.2 per cent, the average
worker got a pay rise of just 3.8 per cent in September. 

The research, from the pay specialists Incomes Data Services, highlights the
financial problems facing millions of workers. 

Most of their household bills, particularly food and fuel, are rocketing by
up to 35 per cent. However, their meagre pay rise does not begin to cover
the extra cost. 

The majority of the 50 pay settlements investigated by IDS were in the
private sector covering around 1.1million employees. 

They range from just 2 per cent for workers at the BBC to 5.3 per cent for
workers at a firm of dockyard workers. 

Incomes Data Services warned pay rises are likely to fall even further over
the coming year as inflation is expected to drop sharply. 

Economists predict inflation will fall below the Government's 2 per cent
target next year.

 

 

 

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