Once again, Goldman Sachs (GS) has made every other firm on Wall Street look like a bunch of chumps. In Q3, for example, when firms like Merrill Lynch, Morgan Stanley, and Citigroup were forced to write off billions of losses from dumb-arse mortgage bets, Goldman was apparently on the other side of the trades.
The Times’ Jenny Anderson reports that Goldman has converted the credit crunch into massive profits. This combined with the year’s strong M&A revenue, will likely send Goldman’s bonuses even higher into the stratosphere. Last year’s merely amazing Goldman bonus pool ($623,000 per employee) outraged just about everyone who didn’t work on Wall Street. This year’s will probably send even those who do work on Wall Street around the bend.
Of course, the real losers here won’t be non-Goldman-Wall Street-star employees, who will be paid handsomely–in part so they won’t leave for Goldman. The real losers will be (and already are) non-Goldman Wall Street shareholders. Let the Goldman bonus envy begin.
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