15 July 2009

Staff at Goldman Sachs to receive $770,000

US investment bank Goldman Sachs is set to pay staff a whopping pay packet of $770,000, in a story that reads as though it came from another world before recession tohttp://www.blogger.com/img/blank.gifok hold. But no, indeed the story is from today - the bank reported extremely healthy earnings for the second quarter. Earnings so good, even the most upbeat analysts were surprised.

The second quarter earnings were largely thanks to strong revenue growth from and currencies, underwriting fees from capital raisings and fixed income.

The bank apparently recognises the fragility of the market as a whole but has already paid back $10 billion of taxpayer funds - so some might argue that they are right to enjoy the profits.

However, US congress is less than impressed with what they call "bonus culture" and what, they believe, leads to financial risk taking .....which ultimately leads to banking disasters such as this one.

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