If Only Goldman Would Admit How Much They Owe Us, People Wouldn't Hate Them So Much

Was it fair, commentators kept asking, that barely a year after the taxpayers had essentially saved the financial system, this firm that took government capital should now be paying multimillion-dollar bonuses? Was it right?…

In private, Goldman executives are scornful of the sentiment behind this question. Their view, in essence, is that they should be applauded for being able to pay such big bonuses, because it means their business is successful. People who want them to pay less, they believe, want them to fail…

But it’s worth taking a moment now to count the various ways Goldman depended on the government’s good will both during and after the crisis. It was a lot more than just the TARP money [which Goldman has paid back]. In fact, those bonuses that Goldman executives are about to pull down owe a fair amount to us taxpayers. Goldman’s failure to even concede that point is a large part of the reason the firm is under such scrutiny now.

Read the whole thing >

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.