After reporting
blowout earnings last week,
Goldman Sachs (NYSE: GS) said it has set
aside close to $17 billion for employee compensation so far
this year (or about
halfits net revenue). It's no surprise that Goldman
now finds itself in the crosshairs of public outrage.
It's a familiar gripe: In the last year controversy has
surrounded bonuses at
AIG (NYSE: AIG) and
Bank of America 's (NYSE: BAC) Merrill Lynch
unit.
Citigroup (NYSE: C) avoided having to dish
out millions to a star trader by
selling its Phibrounit to
Occidental Petroleum (NYSE: OXY).
But according to one of Goldman's international advisors,
the bonuses are something we have to "tolerate." Brian
Griffiths
arguedthis week that pay inequality helps achieve
"greater prosperity and opportunity for all." The spending,
he claims, will also help stimulate the economy.
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This article was originally published as
Wall Street Bonuses: Good for America?on
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