Were Blankfein’s comments on compensation 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?
(Photo courtesy of goldmansachs.com)