Popping the champagne already?

No matter how hard I try to share your enthusiasm about the Goldman bonuses, I can not help from expressing my rather conservative and old fashioned views on the issue. As I learned about the article decorating the front of the pink financial news paper next to a photo of 9 fighter planes making a colorful fly-by over l’Arc de Triumph, I was not sure if the flyby was a gesture to the French national day or the bonus payouts at Goldman’s.

Indeed is it positive reading that trading and financial activities again is picking up, but there is still a long way to go for the economy as a whole. Companies are still laying off people, unemployment levels are on their peaks and economics analysts are still trying to figure out if we have reached the bottom of the recession.
Furthermore, the pay-out announced by Goldman was not just a little symbolic compensation indicating that potential prosperity is becoming realistic, it was a record-pay out! Bonuses of this scale had not even been issued before the crisis.

Whether the pay-out is a gift to Goldman’s employees for bringing the company through a difficult time, a catch up of previously unallocated bonuses, or a quick maneuver made by management before remuneration ceilings are enforced by the government, I do not know. However I had expected more modesty and prudence from a financial institution, as this industry officially has been recognized as the guilty for the financial crisis.

The vital role of financial institutions to stimulate monetary activity, combined with the rigid and complex financial structures which most regular mortal people find hard to grasp, and short memory of the rest of us, will make yesterday’s article quickly forgotten.

I find it hard to understand how the size of such a pay-out can be justified? Are there no moral emotions triggered by the receivers? What possible consequences can follow this action?

Brendan, I have to agree with you on the fact that there is nothing wrong with executive compensation, especially when management has had positive results and outperformed its competition. At the same time I believe we need to learn how to look past indicators like EPS, Net Income or EBITDA since sometimes they can be misleading and not necessarily be a reflection of reality. In my opinion we need to focus on a more in depth and meticulous analysis, which would include all relevant factors concerning and affecting the wellbeing of the company and maybe move away from the traditional P&L and Balance Sheet as the base for determining compensation. For example, I’m not familiar with GS at all, but from the little I have red I have a few concearns about its 2Q results. The fact that their revenues came mostly from bond, currency and commodity trading (93% higher compared with 2Q 2008) is showing that they have the ability to attack and profit from emerging business opportunities, but at the same time we need to question if this is an extraordinary quarter due to uncommon market factors and also question and analyze if GS deviating from its core business, the second thing is that as there are less players in the bank sector, so is GS just making revenues as a consequence of the closing down of other banks or are their operations really improving, and finally I would expect that the 2009 vs. 2008 comparison could be somehow misleading since 2008, which is the base of the comparison, was over all a bad year. So as a conclusion, I believe that we have to change the base in which compensation is measured, and develop a new and more accurate calculation, where we could include market factors, future growth and firmness of the company, and deviate a little from the usual P&L and Balance Sheet measurement.

Let’s hope that over the next few months we continue to see this kind of headlines and get back on the path towards a healthy economy.

hiiii

wholesale watches

rental property management
http://www.spiralaxis.com/rental-property-management.htm

Search to find UK private tutors in your area for primary, secondary and degree level private or home tuition. UK Tutors provides tutors offering a range of subjects such as English and Maths but also niche subjects like languages. Private tuition for Entrance exams, SATs,GCSEs and A-Levels are all catered for right across the UK.
http://www.uktutors.com

Watch the latest football and soccer highlights.Also watch your favorite soccer teams on live streaming
http://www.footiechampions.com

Information site providing slot reviews on the best and most popular slot machines on the internet.
http://www.slotreviews.com/

Well it’s a very nice site. It’s same as my site. My site mainly deals with Stock Market Reports, News, Analysis and Researches.
http://www.stockmarketsreview.com

Goldman would have gone bankrupt if taxpayers didn’t bail out AIG, which then used billions of the money to cover trades with Goldman. Goldman made trades that were far too risky, the government provided the cash to cover goldman’s bets – and now you want us to be glad they are paying out huge bonuses? Did you miss the massive banking crisis that happened last year?

Download movies in DVD, PDA, iPod quality.
http://www.cimaxmovies.com

Goldman’s bonuses are open to scrutiny because the federal government bailed them out in 3 ways:

1) $100 billion in bailout money to AIG enabled them to pay Goldman $20 billion in insurance claims. The lack of these payments could easily have led to Goldman’s insolvency.

2) The government allowed Goldman’s chief competitor Lehman Brothers fail so they have had less competition.

3) At the height of the crisis, Goldman was quickly converted to a bank holding company which allowed it access to currency from the Treasury and Comptroller of the Currency.

Based on these facts, it is no more valid to lionize Goldman’s recent success than it is to demonize them for leading us into the current recession.

Goldman was able to pay back the $10 billion in emergency money so quickly because you and I, the taxpayer bailed them out in their hour of need. Paying exorbitant bonuses now is not in Goldman’s or the country’s best interest.

well, i did not know that Goldman was giving extra bonuses , that’s amazing,thank you for sharing, if you are looking for lofts toronto at downtown, queen west , log onto urbanopolis.com , thank you

Hosting Review | Best web hosting | Web Host Ratings

http://www.besthostrating.com

Luxury24.org is a wholesale watch business focused on delivering
luxury items at great prices. With over twenty years experience we
pride ourselves on our expert knowledge and professional touch.
There are many popular and prestigious watches in this huge global
market, but one stands out alone in terms of prominence of name,
workmanship and popularity. That name is “Rolex” and is synonymous
with everything associated with style and success.

http://www.luxury24.org

I have no issue with Goldmans or any other IB paying bonuses for success but not for failure. If the credit crunch has taught us anything it is that we should have more transparency when it comes to bankers bonuses and that success should be rewarded but failure should also lead to non payment of bonuses and potentially, being fired.

How can we let bankers get away with this? They have brought the world to a standstill with their mis-management of finances and I am fed up with it, as are many people I speak to.

http://ukloanservices.co.uk/

Gap year travel all over the world from Costa Rica gap years to gap years in Africa teaching english in schools.
http://www.theleap.co.uk

how should you to gain height and grow tall, get rid of man boobs properly and-what-is-the-best treatment for skin warts.We provide a proper solution for this purpose.
http://www.transtarbuilders.com/treatmanboobs_removewarts_growtall.html

watch Kim Kardashian tape ..enjoy !!

http://www.kimkardashiantape.org/

Intelligent Solutions to Lower Data Storage TCO.
http://www.storagezip.com

Find all the components needed for any make and model of Zune Player.///////

http://www.zuneparts.com

healthy…

Your topic Lost in Play: Adapting the Zone of Imagination in the Works of Guy Ben-Ner was interesting when I found it on Monday searching for healthy…

Resource Guy…

Mondays seem to work good for me, I discovered your 引用 – 校团委宣传部新闻中心新闻报送系统 page when looking for group travel insurance on google You can try to please some of the people some of the time, but you’ll never please all of the people all of the time. Oh W…