Were Blankfein’s comments on compensation self serving?

September 10, 2009

Lloyd BlankfeinGoldman Sachs CEO Lloyd Blankfein’s recent comments on compensation may seem like a call for responsibility in the financial services industry, but they may also be self serving. 

Speaking at a conference in Frankfurt on Wednesday, Blankfein said that financial institutions that lose money should not pay outsized bonuses. 

That seems fairly reasonable, but if Wall Street really did embrace that policy, Goldman could benefit. Look at this year: so far Goldman has earned $5.2 billion, while Morgan Stanley has lost $1.8 billion. If Morgan Stanley refrained from paying big bonuses, which bank would be well positioned to hire its top talent?  

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All of the Wall St investment banking houses including Goldman would now be belly up had it not been for the US taxpayers and those future obligations placed upon generations to follow. We still don\’t know if many institutions are solvent because their books are cooked with fantasy numbers and not marked to market. These banks and bankers all deserve to be taxed at 90% and the proceeds reinvested into the USA infrastructure.

Frankly I find the entire concept of Wall Street and their self dealing, self serving activities to be counterproductive to the USA. Their DNA of greed needs to be stripped from the culture of the USA. They’ve been able to pay themselves exorbitantly for essentially doing deal making but providing nothing of real worth. At the same time they are stealing the most intelligent and productive talent in the USA, that should be used in research and design and the development of tangible products.

Posted by Thomas B. | Report as abusive

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