Goldman Sachs earned $2.7 billion, or $4.93 a share in the quarter just reported. Woah. This easily blows by analyst estimates of $3.49 a share, but what’s new? Goldman always have record profits no matter what you do.
The funny thing is that this time, they are making it off taxpayers dollars. They wanted to pay back TARP, but they are also still issuing debt using FDIC guarantees. That makes them using our money so they can take on more risk. Yikes.
Another interesting point, they are setting aside $6.65 billion for salary, bonuses and benefits. $6.65 billion! This means that an average Goldman employee is going to make $900,000 this year. In an economy where most of us are scared to death about our job, this firm’s employees are AVERAGING almost a million dollars in compensation. Geez.
I know the government is trying to make sure the financial system is making enough money and all, but come on. Maybe it’s time to at least slow down some of these guys. It’s not like Goldman making money will help the financial system at all. We need actual banks to make money and then lend them out to get the credit system moving again. Not Goldman Sachs so employees can get bigger houses and more expensive rug.
Do the right thing here. This is out of control.