This morning there is both good and bad news for Goldman.
The good news is that Goldman traders turned in a mind-boggling perfect quarter, according to Bloomberg, meaning Goldman profited every day last quarter for the first time ever. That’s got to feel awesome after all that happened last month, though really it just makes it seem like the game is rigged.
Couldn’t they have purposely lost money on a couple of days?
Meanwhile there’s also a report in the Financial Times saying that Goldman execs are freaking out about Goldman’s cutting back the number of employees named partner this year or demoting a number of people.
Here’s the concern: Goldman usually has around 400 partners total and names close to 100 new partners every other year. The turnover rate required for those numbers just hasn’t happened recently (the turnover rate is currently down around 20% according to the FT), apparently for two reasons.
One, few left because hadn’t been a ton of jobs elsewhere. Two, Goldman has done a lot better than other firms in the past few years so there’s little desire to leave, especially when everyone at Goldman is rallying around the firm in support during tough times.
Ironically, keeping the number of partners close to 400 is said to be crucial to maintaining the firm’s tight-knit atmosphere. But demoting a large number this year might reverse that effect if the number of partners demoted suddenly jumps 20%.
Maybe the firm’s apparent rock star performance last quarter not to mention last Wednesday) means they have room for more partners.