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