Goldman Sachs Posts Nearly $5 Billion In Profit While Restrains Compensation In Q4

January 21, 2010 by · Leave a Comment
Filed under: Industry News 

Quite a good quarter for the Goldman Sachs boys.  With the amount of bailout they got through AIG via the treasury, you better be able to make money.  We have a huge swing in the markets in 2009 and GS was flush with cash and was able to deploy it and ride the wave up.  I do like they are trying compensation packages to stocks and not cash so the employees goals are aligned with long-term profitability of the firm.

I personally have no problem with a investment bank being profitably, but if we are going to have them unregulated, we need to let them fail when they get to greedy and lets them be rewarded by our markets when they are more clever than the rest, THAT is real capitalism.

New York – Dow Jones – Goldman Sachs Group Inc. (GS) on Thursday delivered its richest quarterly profit in the investment bank’s 140-year history, driven in part because it restrained compensation amid a public outcry about excessive pay.

The most profitable bank on Wall Street capped off a record year with quarterly earnings of nearly $5 billion, an amount that eclipsed the combined returns of rivals JPMorgan Chase & Co. (JPM), Morgan Stanley (MS), Citigroup Inc. (C), and Bank of America Corp. (BAC). It also highlights Goldman’s revival from a financial crisis that toppled some of its competitors.

But the results also revealed that Goldman is being swayed by the intense criticism about gilded pay packages after the government’s massive bailout of the banking industry. It also comes as President Barack Obama proposed on Thursday limits on the size and risk-taking of the nation’s biggest banks, including ending bank’s ability to engage in proprietary trading, hedge funds and private equity.

Shares of Goldman fell in step with other financial stocks, falling 5.6% to $158.34 in early afternoon trading on the New York Stock Exchange. The stock doubled in 2009.

The most-watched topic, compensation, took many on Wall Street by surprise. The bank set aside $16.2 billion for compensation for its employees in 2009, well below the record many expected the firm would announce.

Click Here to Continue Reading

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!