Saturday, July 17, 2010

A handslap for Goldman Sachs

The SEC slapped Goldman Sachs' hand with a $550 million dollar settlement on a fraud charges, that it misled investors about collateralized debt obligations re subprime mortgages.

You have to understand, that is chump change to GS-- their BONUS money pool was TRIMMED to $16 BILLION last year.                                          
                                                                                    The average bonus $ @ SC is $500,000.
The average pay of a GS employee is $498,000

With a  $45 billion dollar profit margin in 2009, the $550 million is 1.2% of their income.

POP QUIZ: Who do you think will take that financial hit?

Look for the answer in your  401K quarterly report.



Utah Savage said...

I will never do business with GS or a company that does business with GS. That may make it hard for me to do any business at all, since they are embeded deep into the fabric of our economy. For instance, my home and auto insurance is with Farmers, and I can't pay off my insurance for the year, so it's made in auto-deductions from my checking account. GS does their billing, so I'm giving them money in a very back door way. Once my reverse mortgage goes through I'll pay my homeowners and auto insurance off for the year rather than let GS anywhere near my money.

Jerry Critter said...

$550 million sounds like a big number. If it was my income or your income it would be a big number. But you are right. When you make BILLIONS in profit and $550 million is about the salary of your average employee, $550 million is nothing. You don't even feel it. So you have to fire one person to maintain your profits. GS will not even blink at $550 million.

It is chump change and we are the chumps.

nonnie9999 said...

and how much you wanna bet they get to take the settlement off as a deduction on their taxes? that is, if they actually pay any taxes.

Fran said...

Hi Utah~ Goldman has had an insidious hold on this country (ever see Michael Moore's film Capitalism a Love Story? He gives an historical glimpse of how Goldman has had their hand in the Federal treasury & the Government for many decades now. They should be made to finance all those peoples mortgages- those who wound up with the short end of the stick & lost their homes. Forget the fancy financial lingo about what they did-- they put hardworking people out of their homes. They got sloppy & greedy & sold pie in the sky mortgages, not using the strict income to purchase ratio... let people get deeply in debt with balloon payment schemes & variable rate mortgages-- low low payments today-- but soon too high to afford. That's not just sleazy business... it is criminal behavior- because they knowingly tricked people into these loans.

This fine is an insult to us all- and especially now struggling to live without a home.

Jerry~ Yesssss! A big sounding number, but I attempted to put it in perspective.
We sure did get chumped.

Nonnie~ A tax write off-- now you are thinking like a Wall street banker. = O