Goldman Sachs Likely to Post Huge Profits, Analysts Say
By GRAHAM BOWLEY and JENNY ANDERSON
Most of Wall Street, and America, is still waiting for an economic recovery. Then there is Goldman Sachs.
Up and down Wall Street, analysts and traders are buzzing that Goldman, which only recently paid back its government bailout money, will report blowout profits from trading on Tuesday.
Analysts predict the bank earned a profit of more than $2 billion in the March-June period, because of its trading prowess across world markets. If they are right, the bank’s rivals will once again be left to wonder exactly how Goldman, long the envy of Wall Street, could have rebounded so drastically only months after the nation’s financial industry was shaken to its foundations.
The obsessive speculation has already begun, along with banter about how Goldman’s rapid return to minting money will be perceived by lawmakers and taxpayers who aided Goldman with a multibillion-dollar cushion last fall.
“They exist, and others don’t, and taxpayers made it possible,” said one industry consultant, who, like many people interviewed for this article, declined to be named for fear of jeopardizing business relationships.
Startling, too, is how much of its revenue Goldman is expected to share with its employees. Analysts estimate that the bank will set aside enough money to pay a total of $18 billion in compensation and benefits this year to its 28,000 employees, or more than $600,000 an employee. Top producers stand to earn millions.
On The American Conservative's blog, Dennis Dale noted this last week:
From Bloomberg, Johnathan Weil reports a US prosecutor says a stolen Goldman Sachs computer program capable of manipulating global markets may fall into the wrong hands (wrong being other than the world’s most powerful investment bank). About the first of this month Goldman notified authorities that former employee Sergey Aleynikov, not content with post-its and paper clips, ripped off the program in his last week working for the company. He was arrested getting off a plane in Newark on July 3.