Yes, it turns out that paying partners massive gobs each cash for big short-term profits wasn’t in line with the best interests of the firm. Sorry!
Goldman Sachs (GS) CEO Lloyd Blankfein said in a speech today that, yes, bank compensation was “greedy” and not in line with shareholder interests.
Of course, many will not find it particularly shocking or new to hear Wall Street compensation practices described as “greedy.”
As seen in the image, courtesy of Fox Business, Blankfein was interrupted by protesters demanding their money back.
Of course, Goldman has been saying for a while that it intends to return its TARP cash, so he and the protestors are all on the same page.
Update: WSJ has more on ths speech. In addition to his mea culpa on pay, he criticised the industry for outsourcing risk management and for an overall “lack of scepticism.” He also gave his endorsement to new regulations:
“For policymakers and regulators, it should be clear that self-regulation has its limits,” he said, adding that all pools of capital that may prove burdensome to the marketplace in a time of crisis should be included in the regulatory scheme.
“Yes, that includes large hedge funds and private equity funds.”
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