Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page:

From The Socialist newspaper, 21 October 2009

Laughing all the way to the bank

US BANK Goldman Sachs is on track to pay $22 billion in salaries and bonuses this year, an average of $700,000 for each of its 31,700 employees. This is more than the record payout in 2007 at the height of the financial stock market bubble.

John Sharpe

Last year Goldman Sachs paid out over $4 billion in bonuses. 953 employees each received an eye-watering million dollars or more and 78 executives each got a stratospheric $5 million or more.

Because the bank has repaid the $10 billion bailout it took from the US government, it is no longer subject to the pay restrictions that have been imposed on the likes of Bank of America and Citigroup.

Wall Street banks are forecast to pay out a record $140 billion in bonuses this year.

Given the furore over bankers' bonuses, Goldman Sachs did concede that it would curb bonuses to UK staff from next year - without giving too much detail!

At the G20 summit in Pittsburgh in September world leaders agreed to introduce rules limiting bankers' pay and many banks, including Goldman, signed up to its implementation. They did not agree though, under pressure from the US and UK, to set caps (limits) on bonuses.

But even these 'light touch' regulations are proving too much. The US Federal Reserve claim that they are " example...and not binding..." While the head of Barclays, Marcus Aguis, believes they are "susceptible to interpretation".

A "compensation consultant" told The New York Times: "I definitely think they should be doing something about it... They have got to arrange the chairs on the deck so that things look different". As the NYT wryly observed, "as long as it does not involve actually cutting pay."

After governments around the world launched the biggest bailout in history to save the financial system from complete collapse, workers are now faced with plenty of 'caps' - pay freezes, pay cuts, job cuts, cuts in services, etc. Goldman executives think they have a "public relations problem" and are "perplexed by the resentment directed at their bank"! Your heart bleeds for them.

  • Average (London) City pay increased 3% to 52,142 between August and September this year despite pay freezes imposed on millions of other workers.
  • Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.

    In The Socialist 21 October 2009:

    Postal workers must win

    Post - a battle that mass strike action can win

    War and occupation

    Afghanistan: Troops out!

    Afghanistan - end the bloody occupation


    Protests at the BBC: No to the far-right, racist BNP

    WDL racists chased out of town

    International socialist news and analysis

    Sri Lanka protest: Shut down the prison camps! journalist refused entry into China

    Socialist Party news and analysis

    Tommy Sheridan - a socialist fighter on a worker's wage

    Laughing all the way to the bank

    Fast news

    Socialist Party workplace news

    FBU strike to defend fire service

    Leeds bin workers fight on

    Giant energy company hounds unemployed electrician

    First bus drivers give bosses a 'fright'

    400 jobs under threat at Leeds

    Striking at London Metropolitan


    Primary education: Report slams government policy

    Political representation

    Union activists discuss pulling the plug on Labour

    Conference on political representation

    Socialist Party reviews

    The Greatest Show on Earth: The evidence for Evolution

    Hard Times by Charles Dickens, reviewed by Linda Taaffe

    Marxist analysis: history

    When Britain's spies backed Mussolini


    Home   |   The Socialist 21 October 2009   |   Join the Socialist Party

    Subscribe   |   Donate  

    Related links:


    triangleTories torn - bin them now

    triangleDefuse the consumer debt time bomb: nationalise the banks!

    triangleBarclays finally charged for having hands in till

    triangleCampaign launch: "rip-off bosses and greedy bankers - enough is enough!"

    triangleTop banks post 67% of profits in tax havens - nationalise the banks!


    triangleArriva North West bus drivers strike over pay

    triangleRoyal Mail bosses block strike - back postal workers

    triangleNorth London hospital workers fight cuts and job losses

    triangleUnite local government sector plans strike ballot


    triangleCity bosses' 40m bonuses as Number of food banks hits 2,000

    triangleStop the 54,000 yearly maternity sackings


    triangleObesity epidemic: end food market anarchy

    triangleSwansea Socialist Party: Mother Jones - A US labour pioneer

    Goldman Sachs:

    triangleTrump victory: Failure of the Democrat establishment


    triangleHousing crisis: Corbyn's positive measures blanked by Labour's right

    Reports and campaigns

    Reports and campaigns


    North West

    Arriva North West bus drivers strike over pay


    Democratic rights

    Conference on state spies: who's watching who?



    Striking back against sackers' charter at Leeds Uni


    Royal Mail

    Royal Mail bosses block strike - back postal workers



    Balloting members on the pay cap



    'Dazzling' Bad Art show points to socialist future



    Sheffield Labour council threatens peaceful protesters with prison


    South West Wales

    Hundreds turn out for rally aimed at removing west Wales Tory MP



    Uprising to save the NHS!



    Can you donate to the Socialism 2017 appeal?


    East London

    No cuts - hands off King George A&E!


    North London

    North London hospital workers fight cuts and job losses



    Nationalise to save jobs at BAE Systems



    Schools "can't go any further" - stop the cuts: set deficit budgets now



    Socialist Students 'welcome' Hillary Clinton to Swansea

    triangleMore Reports and campaigns articles...

    Join the Socialist Party
    Subscribe to Socialist Party publications
    Donate to the Socialist Party

    triangle19 Oct Arriva North West bus drivers strike over pay

    triangle18 Oct Russia, October 1917: When workers took power

    triangle18 Oct Tories torn - bin them now

    triangle18 Oct Royal Mail bosses block strike - back postal workers

    triangle18 Oct Balloting members on the pay cap

    triangle13 Oct The end of the Tories?

    triangle11 Oct Nasty party out the Tories

    More ...

    triangle21 Oct Birmingham: NSSN Solidarity Forum

    triangle23 Oct Chesterfield Socialist Party: The continuing struggle for abortion rights

    triangle24 Oct Liverpool Socialist Party: The October Russian Revolution 100 years ago to the day

    triangle25 Oct Salford Socialist Party: The October 1917 Russian revolution

    More ...

    Socialist Party Facebook page
    Socialist Party on Twitter
    Visit us on Youtube



    October 2017

    September 2017

    August 2017

    July 2017

    June 2017

    May 2017

    April 2017

    March 2017

    February 2017

    January 2017




















    SP RSS feed RSS

    Platform setting: = No platform choice