Best Bank in America Has Best Year Ever Despite Crisis

The best bank in America, Goldman Sachs, once again proves to be the best of the best: 2009 has thus far been GS’ best year ever. This is remarkable because many others banks are in trouble and needed a government bailout desperately earlier this year.

Sadly for the bank it may very well get into trouble with the federal government. Why? Because the higher its profits, the bigger the bonuses its employees will receive. Since this has been a record breaking year so far - and from the looks of it, it will be even better 31 December - it will also award its best employees with record breaking bonuses. This is the exact opposite of what the White House wants.

Staff at Goldman Sachs staff can look forward to the biggest bonus payouts in the firm’s 140-year history after a spectacular first half of the year, sparking concern that the big investment banks which survived the credit crunch will derail financial regulation reforms.

A lack of competition and a surge in revenues from trading foreign currency, bonds and fixed-income products has sent profits at Goldman Sachs soaring, according to insiders at the firm.

Staff in London were briefed last week on the banking and securities company’s prospects and told they could look forward to bumper bonuses if, as predicted, it completed its most profitable year ever. Figures next month detailing the firm’s second-quarter earnings are expected to show a further jump in profits. Warren Buffett, who bought $5bn of the company’s shares in January, has already made a $1bn gain on his investment.

Goldman Sachs is an old fashioned bank. Unlike others, it refuses to take big risks, even during good times. It always acts rationally and calmly. It does not gamble with people’s money. Furthermore, it’s also incredibly independent. It does not let the government dictate it what it should do. It does what it believes to be in the interest of its customers, and that’s that.

As an aside, it’s fantastically ironic to see that Warren Buffett made $1bn in such a short amount of time. Buffett is a Democrat, who constantly says he and other rich people should pay higher taxes, because they pay so little. How about him donating this $1 billion to charity or giving it to the government so it has more ‘wealth’ to ’spread around?’

Meanwhile, GS should act in its own interests, and live up to its obligation with its customers and employees. Obama and other Democrats will undoubtedly cry foul, but those who worked hard while other banks were going bankrupt deserve big financial rewards.

It’s called capitalism. Deal with it.

2009 PoliGazette. All Rights Reserved.

.

Source: PoliGazette RSS Feed