Goldman Sachs finds $5bn for pay and bonuses amid fraud investigation

[babylonsister]

Goldman Sachs finds $5bn for pay and bonuses amid fraud investigation

Goldman staff will benefit from almost half the investment bank's first-quarter revenues

* Ruth Sunderland
* The Observer, Sunday 18 April 2010


Goldman Sachs is expected to earmark about $5bn (£3bn) for staff pay and bonuses this week, days after being accused of securities fraud by the US regulators, fuelling the controversy over bankers' rewards in the teeth of the financial crisis.

Chief executive Lloyd Blankfein is expected to unveil revenues of $11bn for the first quarter of this year on Tuesday, up from $9.4bn in the same period of 2009. About 47% of that will go into a "compensation pool" for bosses and employees.

The bank, along with Fabrice Tourre, one of its vice presidents, is the subject of a civil fraud complaint by the US Securities and Exchange Commission (SEC). It denies the accusations and is understood to believe they are the result of a politically motivated witch-hunt – timed to coincide with a drive by President Obama to get tough on banks, and to come just ahead of its results.

The bank has been aware of the SEC's investigation for two years but had not spoken to investigators since September 2009 and is thought to have been taken by surprise by last week's events. Tourre has been interviewed by Goldman's internal compliance department but is still employed by the bank and has not been suspended.

more...

http://www.guardian.co.uk/business/2010/apr/18/goldman-sachs-pay-bonuses

[Initech]

1. Times like this I'm really beginning to see why the Bolsheviks revolted.

[Uben]

2. Good

...then they'll have no problem paying a $50 billion fine for fraud

[chollybocker]

3. Just cleaning out the petty cash jar, before the Feds start auditing.