Tuesday, July 14, 2009

Goldman Sachs Profit & Bonus Bonanza!

Goldman Sachs reported net income of $2.7 billion and net earnings of $3.44 billion. They set aside $6.65 billion in compensation for the second quarter. Bonus pay isn't a fraction of profits, it's a multiple. Quarterly bonuses are 2.46 times net income and nearly double net earnings.

Greed is back on Wall Street. It has some people worried. Higher risk means higher reward, at least until one makes the wrong bets. Isn't that what happened last September?