$140 billion payday for Wall Street
Filed under: Economy, Earnings, Goldman Sachs
Workers at major Wall Street firms will make as much as $140 billion this year, and the reaction from the public and Congress can already be predicted. According to an exclusive report in The Wall Street Journal, "Workers at 23 top investment banks, hedge funds, asset managers and stock and commodities exchanges can expect to earn even more than they did the peak year of 2007."
Wall Street executives will make the case that many firms like Goldman Sachs (GS) will produce record annual profit results for their shareholders, and that their stock prices have handily outperformed the market. But the board of directors approving the pay might have been better off delaying some of the payouts for a year, or reducing them in the name of self-preservation. Nothing is more likely to anger Congress and the Administration than headlines announcing that the average Goldman employee will make $700,000, which means its executives will make many times that.
Financial firms will advance the argument that they have to give out rich pay packages to keep their best workers. The issue that raises, of course, is where will all those people go to pursue their riches? There are only so many hedge funds and private equity firms, and many are not hiring because of the wounds they experienced during the credit crisis.
The hearings over Wall Street salaries will almost certainly start in Congress by the end of the year. Compensation is the perfect target for lawmakers to attack as a sign to voters that they are prepared to rip down the old system where the rich get richer. There is nothing wrong with being wealthy unless it is during one of the great economic downturns in U.S. history.
Douglas A. McIntyre is an editor at 24/7 Wall St.



























Reader Comments (Page 1 of 6)
10-14-2009 @ 7:38AM
Ken said...
I can not wait to see what our present congress does about this. Most likely nothing. This is the perfect reason all those in Washington need to go and be replaced. It is also time to introduce a third party since the present two parties are corrupt.
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10-14-2009 @ 12:03PM
John said...
Goldman Sachs was the second highest contributor to the Obama campaign and his administration is full of ex GS employees. You think Obama is going to clean up the abuses?
10-14-2009 @ 1:58PM
Mike said...
How in the hell do you think Goldman Sachs, and the banks and the other investment firms have realized billions of dollars of profit during a steep recession?????? Huh?? Its call a balance transfer. THEY HAVE TRANSFERRED YOUR BALANCE TO THEIR ACCOUNTS.
10-15-2009 @ 1:47PM
al brow said...
Understand that the current form of gov't is under the control of those on welfare, entitlements, gov't contracts & gov't employment, which constitutes a majority, Therefore any candidate who oppose this system will lose & the winner will be the one who promises them more. Obama knew this.
A 3rd party will only confuse the system and the majority will still rule.
Infortunately, because of the dumbing down programs the majority are too politically ignorant to uinderstand what the ultimate costs of these handouts will be.
it will alway be true that " there's no dsuch thing as a free lunch"
10-14-2009 @ 7:33PM
Roger said...
You are so right about needing a third party and it needs to be based on it being illegal to take money, meals or gifts from lobbies ... including election funding. These crooks on both sides of the isles are simply greedy incompetents who have no allegiance to the people they represent besides the ones who throw money at them! Bush and his incompetents Socialized Wall Street, Banking and big corporate America simply to protect the wealthy and their capitalistic greed of the almighty profit line. What do you expect from money hungry greedy incompetents who only become politicians to make more money and be well connected. It should also be against the law for an elected or appointed government official to EVER become a lobbyist and make money off of the connections they made while working for the people of this country! Yes ... both isles are full of incompetence and greed and will be as long as we allow them to police themselves. Time for a ballot initiative brought by the people to take the greed out of our government!
10-14-2009 @ 7:30PM
CadillacColinCody said...
Ken you are absolutely correct. The thieves on Wall St. will continue to rip us off big time and yet stay out of prison--but not forever.......hell awaits though long delayed.
The Constitution Party looks to be a good alternative for those of us who believe in our Constitution. Obama really believes it has serious flaws because it prohibits people like him not having been born in the US from becoming president. In spite of the election results, Obama is not actually our legal president as long as the Constitution as written prohibits his being so. You can be entirely certain that he desires nothing more than to rewrite that and other portions of our sacred founding document in spite of his inaugural oath to uphold it (as written).
Always, always, always remember that Satan is a deceiver and the author of all lies. His people control our society now...our government, our "churches," our educational establishment, our entertainment industry, our medical establishment, our news and communications industry and our international business and financial leaders. That is why it is so terribly difficult to find the truth about anything nowadays. The powers-that-be follow their leader, the father of all lies, and try to deceive everyone all the time about everything. Sadly, they have been spectacularly successful thus far.
The war going on in our nation is not fundamentally cultural as is so often assumed. It is rather at heart spiritual, and, therefore, can only be won by fighting on that level first. This means that we must have a great spiritual awakening like that in Charles G. Finney's time or ultimately perish, becoming a nation of penurious surfs. Read these great books, "The Road to Surfdom" and "Finney's Memoirs" if you would like to understand all this much better.
10-14-2009 @ 9:02PM
Adele H. said...
I have said for decades now that we need a three party system. Having two parties who basically vote according to party is doing nothing for this country or it's citizens. Most Americans are not purely Democrat or Republican but lie somewhere in between the two parties, agreeing and disagreeing with each party, depending on the topic, and possibly have a few original ideas of their own. Why must it be only either/or? The average American is way too quiet and complacent. We need to raise our voices against the extremists of both parties and let them know we've had enough of "politics as usual" and are sick and tired of listening to their ranting and raving.
10-17-2009 @ 8:00AM
ken a said...
replace with who?...more self interest peoples..who are owned by the filthy rich...just look up george carlin on who owns america...on you tube....its all there in a nut shell.
10-14-2009 @ 7:53AM
Van said...
Let the tumbrels roll.
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10-14-2009 @ 8:20AM
Richard Staniunas said...
Maybe Bin Laden was right about these capitalist financiers
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10-14-2009 @ 8:21AM
david said...
Thank god we had to bail out wall street and all the too big to fail banks. Record after record profits for there shareholders. Wow, what a diffrence one year makes. I wish all these people had to work for money instead of investing money....
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10-14-2009 @ 8:35AM
john said...
Hell I could make a quick million. Without Glass-Steagall who could'nt. Pull out a check create money out of thin air Invest it in anything If it makes money cool I profit if it tanks bummer put it off on the taxpayer.
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10-14-2009 @ 12:11PM
Ken said...
You are right. Just like any animal you do not bite the hand that feeds you. This is why all in Washington have to go too much corruption. This type of business practice has been going on for too long .
10-14-2009 @ 8:38AM
O640 said...
Well yes, everybody should be able to Grasso other peoples money!
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10-14-2009 @ 8:41AM
Meanstr said...
Hey it's gambling ,The fools pay the market thinking they can get rich the brokers get a piece on each trade ,People lost trillions the brokers had theirs in their pocket Now the people who helped them get the Trillions get their cut.A Trillion dollars does not get up and walk away someone has it.Simple math you pay a hundard for a stock next day it is worth twenty five .Someone has put sevevty five in their pocket it just did not fade away.
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10-14-2009 @ 1:10PM
mickey said...
I agree. Everyone says the money has been "lost". Not true, it just changed ownership. You did lose your money in your 401K. Your money is now owned by someone on Wall St. who was on the other end of your misfortune. Then, they used your money to pay their mortgage payment. So now a third person has the money, the Wall St. guy has his mortgage paid and a place to live, but what do you have? Nothing.
10-14-2009 @ 7:30PM
RICH said...
WOOOOOOO HOOOOO WE GOT MORE SUCKERS MONEY,LETS DIVI IT UP
10-14-2009 @ 8:44AM
dang1067 said...
FVCKING parasitic ROBBERS!!!! And they say we're in economic depression and you got these FVCKING Wall Street parasitic ROBBERS making $140 Billion$$$$!!!! I want my fvcking NUKE now!!!! I want to drop it at the center of Wall Street and Goldman Sachs!!!! SCVMS!!!
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10-14-2009 @ 8:47AM
Joe said...
Read "America for Sale" by Jerome Corsi to learn what's really going on.
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10-14-2009 @ 11:03AM
THogue7464 said...
It is time for the US to have a going out of business sale.