informationliberation
The news you're not supposed to know...




Austrian Economics: Understand Economics, Understand the World
The Century of the Self: The Untold History of Controlling the Masses Through the Manipulation of Unconscious Desires
The Disappearing Male: From Virility to Sterility

The Obama Deception: The Mask Comes Off
Operation Gladio: The Hidden History of U.S. Sponsored False Flag Terrorism in EuropeThe New American Century: The Untold History of The Project for the New American Century
(more)
Article posted Jan 10 2010, 7:13 PM Category: Politics/Corruption Source: Raw Story Print

Lawsuit: Goldman Sachs bonuses bigger than its earnings

By Daniel Tencer

A lawsuit filed against investment bank Goldman Sachs by a shareholder alleges that the company spent more money on corporate bonuses than it earned in 2008.

Shareholder Ken Brown's lawsuit is one of two suits filed against the company this week over its controversial decision to hand out billions of dollars in bonuses even after it was accused of playing a central role in the financial collapse of 2008 and receiving $10 billion in direct aid from the US government.

In his lawsuit (PDF), Brown states that Goldman Sachs gave out $4.82 billion in bonuses in 2008, despite earnings of only $2.32 billion that year. The lawsuit alleges that the company spent 259 percent of its income in the first quarter of 2009 on compensation.

Goldman Sachs handed out $16.7 billion in compensation in the first nine months of 2009, according to Bloomberg news service, and that figure may reach $22 billion for the entire year. Brown's suit says the company typically sets aside 44 percent of its net revenue for employees.

“Payment of this exorbitant amount of compensation, which has little to do with Goldman Sachs’s performance, and was financed in large part with government bailout and taxpayer money, is a waste of the company’s assets and a breach of duty and loyalty," Brown asserts in the suit.

Brown's suit asks the court to order the company to return the bonus money to company coffers.

In another lawsuit, filed Thursday, an Illinois pension fund that is a Goldman shareholder demanded that Goldman return some of the compensation it has handed out since the financial collapse. The Central Laborers' Pension Fund wants compensation for damages to shareholders from the company's compensation spending.

Reuters reports:
The lawsuit contends that Goldman's revenue for the year was artificially inflated by government bailouts of the banking industry and the insurer American International Group Inc, as well as a change in Goldman's fiscal year.

Such sums, and Goldman's practice of continuing to pay out nearly 50 percent of net revenue as compensation, show "scant regard" for the interests of shareholders, it said.
Both lawsuits "are completely without merit," Goldman Sachs spokesman Michael DuVally told Bloomberg news.

Goldman Sachs has paid back the $10 billion it received in direct aid from taxpayers, meaning the company is not bound by government compensation limits. But the $10 billion figure doesn't include the billions more the company received thanks to pressure by the Fed on insurance giant AIG to pay all of its debts to Goldman -- and other AIG creditors -- in full.

On Thursday, it was revealed that during the financial crisis, the New York Fed -- then run by current Treasury Secretary Tim Geithner -- tried to cover up its demand that AIG use taxpayers' money to compensate Goldman Sachs.





Latest Politics/Corruption
- New Gun Study Misses the Point on Self-Defense, and Uses Bad Data to Boot
- Piers Morgan: Jail White People Who Use the N-Word
- Old Enough to Die For the Government, But Not Old Enough to Smoke Cigarettes
- Karl Rove: Only Way To Stop The Violence Is To Repeal Second Amendment
- Obama Calls for Gun Control in Wake of Church Shooting, Says Such Mass Killings Unique to America
- Hack Of Federal Gov't Employee Info Is Much, Much Worse Than Originally Stated: Unencrypted Social Security Numbers Leaked
- Obama Goes Full Stalin: Tells Secret Court To Ignore Law He Signed 4 Hours Earlier, Extend Illegal NSA Surveillance
- The NYTimes Plays Its Role In 'Keeping Fear Alive' With Pure Fearmongering Over PATRIOT Act Renewal









No Comments Posted Add Comment


Add Comment
Name
Comment

* No HTML


Verification *
Please Enter the Verification Code Seen Below
 


PLEASE NOTE
Please see our About Page, our Disclaimer, and our Comments Policy.


FAIR USE NOTICE
This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the DMCA and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.

About Us - Disclaimer - Privacy Policy



Advanced Search
Username:

Password:

Remember Me
Forgot Password?
Register

Cop Kills Man with Patrol Car While Speeding & Looking at Laptop, Flexes Blue Privilege – No Charges - 07/03Cop Tells Woman There's "No Excuse" For Parking The Wrong Way, Says It's Against The Law To Film Him - 07/03NYPD Cops Terrified of New Bills that Will Stop them from Choking and Illegally Searching People - 07/03Why Not an 'Independence From the State' Day? - 07/03Chicago Institutes New "Amusement Tax" On Netflix, Streaming Services - 07/02The Real Untold Story Of Government's Takedown of Silk Road - 07/03Florida Man Sentenced to 8 Months for Driving Away from Interior Border Patrol Checkpoint Too Quickly - 07/03TSA Asks America To LOL At Traveler Who Had $75,000 Taken From Him By Federal Agents - 07/02

Man Follows Speeding Cop, Finds Out He Was Speeding To Buy PeanutsMission Creeps: Homeland Security Agents Confiscate Women's Panties For 'Copyright Infringement'Cop Shoots Couple's Dog, Threatens Jail For Trying To Save Dog's LifeSWAT Team Shoots Teen Girl & Her Dog During Pot Raid On Wrong HomeDurham, NC Cop Testifies Faking 911 Calls To Enter Homes Is "Official Policy"Indiana Sheriff Says US A "War Zone" To Justify New MRAP Military VehicleTampa Cops Surveil Pot Dealer, Catch Him Selling Pot, Raid His Home & Kill Him"You Just Shot An Unarmed Man!": Witness Says Police Shot His Friend With His Hands Up
(more)

 
Top