Goldman Sachs and other banks pay out more in bonuses then they earn

08/03/2009 • Goldman Sachs 666

In this recent article, Some U.S. bank pay "unmoored" from performance: Cuomo By Grant McCool of Reuters, Jul 30, 2009 7:22pm the reporter makes the comment, ..."bonuses for Goldman Sachs Group Inc, Morgan Stanley and JPMorgan Chase & Co were "substantially greater" than the banks' net income." Goldman earned $2.3 billion, paid out $4.8 billion in bonuses and received $10 billion in TARP funding,... How is it any company can pay out more in bonuses then they earn? One way is to use taxpayer money. New York's AG, Cuomo is on the right path in this investigation but the outcome of his efforts are yet to be seen or heard. But Goldman Sachs is not alone in this. Yet it is very possible from reading Michael Lewis' book "Liars Poker" that they may have invented the concept of overpaying people and then found ways to justify it which in turn they possibly shared with the others in their "club". Is it a coincidence that Pa