NEW YORK, NY -- Amidst the turmoil of investor fear and bankruptcy protection filings, Goldman Sachs stands strong as the knight in shining armour of the world's economic crisis--in the only important economy, at least. This champion of investment banks has just reported a very promising $3.44 billion in profits, from total net revenues of $13.8bln, of which a notable $6.65 billion went towards pay and bonuses for employees.
The WTF welcomes this move from Goldman Sachs and the altruistic intentions behind it. Having successfully paid off its last instalment of a $10-billion bail-out loan from the US government, Goldman Sachs has every right to reward its employees by distributing half of all of its revenue among its employees' salaries.
After all, it would be bad news for the competitiveness of its rival banks if Goldman Sachs retained a larger portion of its earnings towards its coffers and investment initiatives, to be used for potential further profits and gain. This holds especially true in the present sluggish retail markets: no point in investing in upstart firms and other new job opportunities when all those businesses are going to fail in the coming months anyways because people are losing jobs and spending less. Instead, it is a much more financially sound investment to distribute that money among the managers and investors at Goldman Sachs so they can purchase more luxury goods such as motorboats and new cars, which are almost guaranteed to last at least 10 years.
In the end, it is consumer spending that will revive the economy and the WTF proudly applauds Goldman Sachs for taking a big step in the right direction.
Related reading: http://news.bbc.co.uk/2/hi/business/8149762.stm
Tuesday, July 14, 2009
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