Goldman Sachs Group Inc is on pace to make record bonus payouts after a robust first half,the Guardian newspaper reported on Sunday. Goldman staff in London were briefed on the outlook and told they could look forward to the bonus hikes if the company registers its most profitable year ever,the report said. The surge in projected profit can be attributed to a lack of competition and increased revenue from trading foreign currency,bonds and fixed-income products,the newspaper said,citing insiders at the firm.
Bonuses have been a point of contention between the Obama administration and Wall Street,which last fall endured a credit crisis that paralyzed the financial markets. The US Treasury responded with the Troubled Asset Relief Program,which made $700 billion in loans available to banks. Goldman Sachs received $10 billion from TARP,which it repaid last week.
In letters to lawmakers last week,Goldman CEO Lloyd Blankfein said the firm is obligated to ensure that compensation reflects the true performance of the firm and motivates proper behavior. A Goldman Sachs spokesman in New York was not immediately available to comment on Monday.
Earlier,Goldman Sachs Group Inc said on Tuesday its second-quarter profit easily surpassed expectations as profit was buoyed by strength in its trading and underwriting businesses.
Long considered one of the strongest banks in the financial sector,analysts widely expected Goldmans profit to continue its rebound. Goldman posted a quarterly loss during the final quarter of 2008 amid the mushrooming credit crisis before returning to profitability in the first three months of 2009.
Ex-GM CEO gets $10 mn in retirement
detroit: Former General Motors Corp chairman and CEO Rick Wagoner will retire August 1 with a pension and benefit package the automaker valued at more than $10 million. Wagoner,56,who was ousted by the Obama administration on March 30,will get $1.64 million in benefits annually for each of the next five years,plus an annual pension of $74,030 for the rest of his life,according to company documents filed Tuesday with the US Securities and Exchange Commission. AP