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Surprise: Goldman Sachs to pay out $5 billion more in bonuses for first three months of 2010

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As if to put the icing on the cake, the investment bank Goldman Sachs is set to shell out another $5 billion in bonuses to employees.

What’s more, the bonuses are expected to cover the employees’ work for just the first three months of the year, according to the UK Sunday Times.

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According to the report, bankers will receive remuneration of about $170,000 per person for the firm’s 32,500 employees. Some traders are set to receive millions.

Earlier this year, Goldman’s “junior” bankers were told they’d begin receiving salaries that were double their previous takes.

“It’s made me rethink everything,” a Goldman Sachs employee, “sipping champagne,” told the site. “I like the new structure even better. My monthly take home just went way up.”

In 2009, Goldman set aside a total of $16.7 billion for employee bonuses, which amounted to about $700,000 per employee. Goldman Sachs CEO Lloyd Blankfein received $9 million in restricted stock.

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News of the new bonuses comes as the Securities and Exchange Commission announced that its charging Goldman with civil fraud over a pre-packaged mortgage instrument they say was designed to fail.

Goldman Sachs created the derivative — called Abacus 2007-AC1 — in response to a request from a hedge fund manager who predicted that the housing market would collapse and wanted to bet against it. The trader, John Paulson, later earned $3.7 billion for his wager. Goldman’s practices cost investors $1 billion, according to the filing.

According to the New York Times, which first revealed details of the Abacus case, the instrument was among 25 Goldman created so that clients could bet against the housing market.

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The Times also revealed Monday that top Goldman executives were responsible for overseeing the unit in question, including a role by Goldman CEO Lloyd Blankfein.

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Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.



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‘He wasn’t that bad then’: Former Trump Org insider recalls when Trump shifted to become ‘a joke’ and ‘a cartoon’

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Former Trump Organization insider Barbara Res recalled a time she worked with President Donald Trump when he "wasn't that bad."

MSNBC host Ari Melber began the segment by calling Trump a "snowflake" for getting mad with Denmark for calling his idea of purchasing Greenland "absurd."

"Let's just deal with this real quick. We know it's how he operates: Attack, troll, mock, bully and indignantly complain other people are bullying him," Melber noted. He then welcomed Res to discuss what is happening in Trump's brain.

He asked Res if anything could become an important issue to Trump if it wounds him enough. "Is he a snowflake?"

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Rudy Giuliani sneaked off to meet Ukrainian officials in Madrid about Biden conspiracy theories: report

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On Wednesday, The New York Times reported that President Donald Trump's lawyer Rudy Giuliani secretly traveled to Madrid in recent weeks to meet with a top aide of new Ukrainian President Volodymyr Zelensky to go fishing for dirt on Democrats.

One of the key focuses of Giuliani's phone calls and in-person meetings was to try to dig up evidence that former Vice President Joe Biden acted improperly to remove a Ukrainian prosecutor investigating an energy company his son was invested in — which has been broadly discredited as conspiracy theories. He also tried to hunt for proof that Ukrainian officials colluded with Democrats to hurt Trump's campaign in 2016, a claim which is not supported by evidence.

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At least eight prison officials knew Epstein wasn’t supposed to be left alone — but they did it anyway: report

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On Wednesday, the Washington Post reported that at least eight staffers at the Bureau of Prisons were aware that arrested hedge fund manager Jeffrey Epstein could be a risk to himself if left unsupervised — raising further questions about why exactly guards left him to his own devices on the night that he allegedly hanged himself.

Investigators reportedly believe that at least some of these officials were aware that he had been left alone. It is unclear why nobody intervened, and the Justice Department is continuing with its investigation. Attorney General William Barr recently ordered the removal of the acting director of the Bureau of Prisons.

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