Yesterday Germany, Today UK, Tomorrow The World: Goldman's Response To Lawsuits By Everyone - Q1 Stub Bonuses!

Tyler Durden's picture

As expected, the line of people preparing to sue Goldman is now longer than the posers who bought the iPad on launch day. Reuters reports that British Prime Minister Gordon Brown, who himself has been in hot water over his much lamented decision to sell UK's gold despite protests from the BOE and likely under the guidance of Goldman and JPM, wants an investigation into the Goldman affair by the FSA, and is saying that impacted UK banks will be considering legal action. Furthermore, GB slammed Goldman after the TimesOnline reported that Goldman will pay $5.6 billion in bonuses for just three months work, including 600 million pounds for London-based staff. Among other things, the ratings-strapped politician, who as recently as ten years ago was doing the bidding precisely of Goldman and its cronies when dumping the gold stash, accused the bank of "moral bankruptcy." We assume is referring to Chapter 11. Of course, that would imply that Brown's hypocrisy should be sufficient for immediate Chapter 7 liquidation proceedings.

From Reuters:

Brown, who is fighting an election campaign, piled pressure on Wall Street's most powerful bank, accusing it of "moral bankruptcy" over reported plans to pay big bonuses.

"I want a special investigation done into the entanglement of Goldman Sachs and the companies there with other banks and what happened," Brown told BBC television.

"There are hundreds of millions of pounds have been traded here and it looks as if people were misled about what happened. I want the Financial Services Authority (FSA) to investigate it immediately," he said.

"I know that the banks themselves will be considering legal action," Brown said, apparently referring to European banks that lost money on the product marketed by Goldman Sachs.

"We will work with the Securities and Exchange Commission in the United States," he said.

A spokeswoman for the FSA declined comment. "We would never confirm or deny we are investigating anybody," she said.

And here is the latest confirmation that Goldman is pursuing nothing less than a first derivative of accelerated wealth transfer before the world ends: the Times of London has discovered that the firm is paying an unprecedented stub bonus of $5.6 billion for the first quarter. Goldman knows its days are numbered so it will pay off as much as it possibly can to its employees before the walls come crashing down. From TimesOnline.

GOLDMAN SACHS, the world’s biggest investment bank that is now assailed by accusations of fraud, is poised to reignite controversy over bankers’ bonuses by paying its staff more than £3.5 billion for just three months’ work.

The bumper payouts will equate to about £110,000 a head for the firm’s 32,500 employees worldwide, with a handful of top traders expected to be in line for multi-million-pound bonuses.

Close to £600m is expected to be paid to the group’s 5,500 London-based staff for the first three months of this year. This is on a par with their remuneration in 2007, the last year of the boom.

The revelation of the enormous pay deals comes as Goldman prepares for a legal battle with the US government. The group was sued on Friday by the Securities and Exchange Commission, the Wall Street regulator, over claims it defrauded investors of $1 billion. Goldman denies the charges.

It appears that despite concerns that this is nothing but a staged pr campaign, the end could very well be in sight for Goldman.

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Fritz's picture

Goldman is a bucket shop.

BlackBeard's picture

and Gordon Brown is a sperm receptacle.

doublethink's picture


Blame it on the weather.


(Reuters) - The air travel chaos caused by a huge ash cloud from an Icelandic volcano has blown through to Asia, with hotels from Beijing to Singapore straining to accommodate thousands of stranded passengers.


It's global after all.

sushi's picture

Looks like GS will be bailing out Greece, France, GD, UK, SP.

Pity about poor Iceland though. All they can do is blow smoke.

Troy Ounce's picture

Europe wants the cash but got the ash.



sweet ebony diamond's picture

ok. i am never going to attempt humour again after reading this:

THE LLOYD’s Prayer
Our Chairman,
Who Art At Goldman,
Blankfein Be Thy Name.
The Rally’s Come. God’s Work Be Done
On Earth As There’s No Fear Of Correction.
Give Us This Day Our Daily Gains,
And Bankrupt Our Competitors
As You Taught Lehman and Bear Their Lessons.
And Bring Us Not Under Indictment.
For Thine Is The Treasury,
The House And The Senate
Forever and Ever.


doublethink's picture


Goldman knows its days are numbered so it will pay off as much as it possibly can to its employees before the walls come crashing down.


The entire firm is "going limited." Just wait for more lawsuits...from shareholders! Godspeed, Goldman Sachs.


rubearish10's picture

Let's calm down now. Since many GS employees are Partners, they get paid quarterly K-1's. TD, are you sure this is an unnatural payroll event?

Mae Kadoodie's picture

Anyone catch Turbo Timmah on Meet the Press this morning?  Clearly he has no interest in seeing his Wall St buds prosecuted:

Paladin en passant's picture

Might we assume Timmy is a tool? A tool being used by someone else.

The Merchant of Venice's picture

It's rather poetic to see MTP ask Geithner about the reforms while he tells his own version of history of leverage in which he was a critical member of the "hide the decline" team.  Timmy can't get out from under the Summer's Bitch cloud.


Oh wait, he can because David Gregory never asks Tim about his role at the Department of Treasury.

He was only the Under Secretary of the Treasury for International Affairs during the push to regulate derivatives in the United States.

anony's picture

Naw, his greater fear along with that of  Lord Blankfein, summers,greespan,orszag,friedman,fuld,frank,shumer,fink,bernanke,netanyahu,rubin,

and other members of the Tribe, is a world wide escalation of anti-jewish sentiment, a backlash that would rival germany in 1939.


cbaba's picture

Totally agree with you .

Jewish bankers did similar things in germany and controlled all banking system. thats why maniac Hitler was able to get support of other germans to kill many innocent jews.

Nobody whats to talk and discuss this issue, i know its a taboo, its a genocide, but if we discuss this issue, we will understand whats going on in US and also England and European bankins system which is full of fraud and cotrolled by jewish bankers/AKA Rotshilds.


Mitchman's picture

It takes a special idiot to speak about "Jewish Bankers " in this day and age.  Touree is not only not a Jewish banker but also has roots in one of the most anti-semitic countries (France) in the world.  Not too many Yids at Morgan Stanley or at JPM for that matter but I don't see any crosses burning at 270 Park Avenue these days.


You're a fucking idiot.

ZeroPower's picture

Wow, just wow.

You took one person's comment you had a beef with and turned it into a 'WALL STREET IS ANTI-SEMETIC' thing. Moronic at the very least.

sweet ebony diamond's picture

Fuck off with the Jewish thing. Banksters come in all types. Dictators come in all types.

Citizen of an IKEA World's picture

Hey cdaba, look behind you...

It's a Jew!  And I think he's a banker!




Cookie's picture

Best weekend news for a long time....Goldman Sucks and chokes!!!

Crab Cake's picture

Anyone for Black Monday?

"I want a special investigation done into the entanglement of Goldman Sachs and the companies there with other banks and what happened," Brown told BBC television.

Brown may very well may wish for a "special" investigation, but much like 9/11 and 7/7 I doubt anyone in officialdom really wants answers. 

Heads must roll.  It's up to the governments to choose whether this is a figurative or literal statement. 

No taxation without representation.  Anyone here feel "represented", particularly in the areas of politics and monetary policy?  Thought not.

"Those who make peaceful revolution impossible will make violent revolution inevitable." John F. Kennedy

So what's it going to be?  Are our so called representatives cops or criminals.  I advise them to choose very very carefully. 

Rage Against The Machine: Take The Power Back

Zombie Investor's picture

Let me know when they bring charges against JPM. 

A Nanny Moose's picture

Let our benefactors' renew their populist vote buying fervor.

Goldman will be fined, might even be broken up. Those who really suffered as a result of this mess, those with underwater mortgages, those with no jobs, will see not one red cent (unless some civil litigation occurs). One-Time fines will go instead, to permanently create some new debt education program, or bureaucratic watchdog to watch the watchdogs, who are watching the market. The promise, of course is to ensure that this "never happens again."

Competition and productivity will suffer. Jobs, wealth, and working conditions will evaporate into the pockets of the bureaucrats, and the politically adept.


Crab Cake's picture

The promise, of course is to ensure that this "never happens again."

I wish them luck with that, as the set pieces for the next act of this drama are being wheeled in as we speak.  In my estimation we are about to take another swing around the deflationary spiral; very very soon.  Many peoples eyes have been opened, many know  that this country, this world, has a disease.  There will be blood when those who shout never again's hands are stained with undeniable guilt.  The internet doesn't forget, and we are watching.

A Man without Qualities's picture

Brown always stick to the line that it was "a crisis that originated in America", and while the mortgages may have been issued in the US, the majority of the securitization and especially the synthetic CDO game was very much based in the UK.  The UK regulators were as much asleep at the wheel on this (frankly the FSA lacks people of sufficient intelligence to see the scam going on.)  So, what is he going to do?  RBS paid cash to buy ABN, and they paid far too much for another badly managed firm .  

If he wants to attack the moral bankruptcy in finance, he should be as much concerned about those who bought the shit without understanding it, because they didn't really care if it blew up at a later date.  

What the buyers were too dumb to understand, but the likes of Pellegrini did was buying a CDO linked to RMBS was essentially selling a put on the US housing market for a few nickels.  JP wanted to take the risk because it was very cheap optionality.


rubearish10's picture

Let's calm down now. Since many GS employees are Partners, they get paid quarterly K-1's, don't they? TD, are you sure this is an unnatural payroll event?

lilimarlene1's picture

Well done, Bill! Sound's a little low, though.

williambanzai7's picture

Tnx--Did you try sliding the volume control on the utube screen?

anony's picture

Goldamn Sucks, Inc  is nothing more than a corporate shell.

The real human detritus that inhabits that shell, that concocts all this fraud will simply leave the shell and re-surface in another shell should GS be made to dissolve.

Ever try to stamp out cucarachas?


mrhonkytonk1948's picture

Exactly.  That's why we need DOJ to make this down low and personal.  The problem is the sociopaths, not the name on the sign. 

sheeple's picture

It appears that despite concerns that this is nothing but a staged pr campaign, the end could very well be in sight for Goldman.


Den of Thieves sequal

pitz's picture

If these Goldman people are unlawfully enriched, then the government ought to go after each Goldman Sachs employee individually, for all of their salary + bonuses, for the past decade. 

My industry (technology) has been destroyed because of these people, and the malinvestment they have induced.

sheeple's picture


General engineering jobs have been destroyed in America ...

Problem Is's picture

Gordon Brown... Quite a Resume

* Tony Blair toady

* Barry Obummer impersonator in white face...

John McCloy's picture

  Will they investigate to see what kind of pressure the Paulson and GS funds were putting on financials and housing with naked shorting? For those kind of moves to be occuring on Bear, Wamu etc it must have been intentional to induce a quicker payout.

Apocalypse Now's picture


  • Was GS given the heads up on date of SEC action?
    • Expiration Friday
    • Could have shorted their own stock & index on inside information
  •  Which insurance company insures GS for Directors & Officers insurance?
    • This usually provides Errors & Omissions coverage
    • This would be the company to short (is it AIG???)
  •  Which companies wrote a CDO like product on GS?
    • Credit rating would now be under serious pressure which would boost CDO's
  •  Could Goldman Sachs be the next international bankers bailout?
    • This is the AIG model - use it as a conduit to bailout the int banking franchise
    • Based on bad PR GS would not last long with customers distrusting
    • Allow large lawsuits to bailout international bankers through insurance
      • Again, if AIG or another insurance co. has a huge insurance exposure to D&O



exportbank's picture

Goldman will bonus every penny and every equity scrap out to management this quarter. Slap a big enough penalty on them and you'll own the company and all the yet uncovered crap.. Win-Win for the "new" GS2 that then opens a week later - 

SheepDog-One's picture

Sure looks to me like everyone from Bear Stearns to Greece to Bank of England can now elbow each other out of the way to pile onto the GS fraud bandwagon. An avalanche starts with the addition of just 1 snowflake.

I think its a turning point, this crap has gone on way too long already. 

leftcoastfool's picture

I hope you're right.  In a sane world the crooks at the top of GS would be held PERSONALLY liable for any criminal activity perpetrated by the company.  Sadly, the best we can hope for is to have enough vermin... I mean attorneys... sue them into oblivion!  That will still be better than the status quo...

justbuygold's picture

You have to laugh at this ...

"The head of JPMorgan Chase in a German newspaper interview on Sunday turned against the possibility of stricter bank regulation and asked for better access for bankers to politicians".

....are you kidding me ! Dimon is tied to the hip with Washington polititans, the FED, the Treasury, etc.....and he wants more ???


Pure Evil's picture

Well, might as well give it all away in bonuses instead of having to give it back to all the losers that got shafted.

Pure Evil's picture

If Goldman goes down who will be the next boogeyman?

Where will we go to assemble and brandish our tourches and pitchforks and display our collective rage and invective against the financial Frankenstein of the 21st centruy?

If the great beast is to be served up as calamari on thousands of Japanese plates then who is to be responsible for the toxic sludge stored in the Vampire Squids ink sac?

The master criminal may go down in infamy, but it will be with the full knowledge that fools like sheep exist to be sheared.

wallstreetnobody's picture

Goldman is paying those massive stub bonuses for an obvious reason - they're afraid they're going to experience a mass exodus of their bankers.  The only reason to be afraid of that is if they expect much more in the way of lawsuits from both investors and federal regulators.  Of course any effort by the government to limit Goldman's pay or increase taxes on their bonuses will simply get the inbred portion of the population up in arms, even though 99% of them would benefit.

dark pools of soros's picture

snakes left among snakes will eat snakes