Remember the days when the age of excess on Wall Street were over? We were told the new normal would mean smaller bonsues, reduced egos, no more bottle service and a New York City devastated by the loss of income trickling down from investment bankers to the rest of us.
Well, Goldman may have received that memo but it didn’t care much for it. Because the big bonus is back at 85 Broad, baby.
Staff at Goldman Sachs staff can look forward to the biggest bonus payouts in the firm’s 140-year history after a spectacular first half of the year, sparking concern that the big investment banks which survived the credit crunch will derail financial regulation reforms.
A lack of competition and a surge in revenues from trading foreign currency, bonds and fixed-income products has sent profits at Goldman Sachs soaring, according to insiders at the firm.
Staff in London were briefed last week on the banking and securities company’s prospects and told they could look forward to bumper bonuses if, as predicted, it completed its most profitable year ever. Figures next month detailing the firm’s second-quarter earnings are expected to show a further jump in profits. Warren Buffett, who bought $5bn of the company’s shares in January, has already made a $1bn gain on his investment.