Tuesday, October 18, 2011

Goldman Sachs Loses Money... Bonuses Will Be Smaller This year

GS reported its 2nd public loss, $428 million, compared with a $1.7 billion profit a year ago. The loss is 84 cents a share, worse than analysts’ predictions of a loss of 16 cents,

NYT: "The quarterly loss is likely to translate into smaller bonuses for Goldman’s roughly 30,000 employees. So far this year, the firm set aside $10.01 billion to pay compensation and benefits, down 24 percent for the same period in 2010. Firms accrue compensation all year and pay it out in the fourth quarter".

Why would a company that loses so much money pay bonuses?

Net revenue in the business that trades bonds, currencies and commodities was $1.73B, down a whopping 36 from a year earlier.

The stock rose on the news! The chart however, continues to be dreadful:

Stumble Upon Toolbar

No comments:

Financial TV

Blog Archive

// adding Google analytics