Zero Bonuses At Goldman?

Tyler Durden's picture

In what is certainly a clear sign of the apocalypse, at least for Wall Streeters, there is now speculation that the holiest of holys, none other than Golman Sachs, may be planning to no bonuses this year following a third quarter which now everyone expects will be the worst for the company in recent history (which is to be expected with the firm's prop trading operation several crippled, although still marginally operational in various other guises). According to The Australian: "Goldman Sachs is planning to slash bonuses to almost zero amid growing expectations that the Wall Street bank is about to slide into the red for only the second time in its history. The market meltdown that began in August has hammered the revenues of all the big global investment banks. Analysts have been slashing their forecasts for Goldman's third-quarter results, due on October 18, with most now expecting it to report a loss." And don't tell Morgan Stanley this but... " Morgan Stanley, its closest rival, could also fall into the red." This means no mas dinero at Times Square-o either. Yet this is nothing compared to the media reaction when mainstream journalism figures out just how many partners and MDs at both Goldman and MS are underwater on loans they have taken out from the company itself in exchange for unvested stock struck at prices anywhere between 50 and 100% higher. Oops.


Goldman's senior executives are determined to prove that the bank can continue to generate bigger returns for shareholders, despite the market turmoil.


They have made an internal commitment to ensure that no more than 35 per cent to 45 per cent of its revenue is paid to staff -- a lower proportion than any other Wall Street bank. The ratio of staff pay to turnover is the key metric used by analysts to determine the efficiency of an investment bank.

Cutting bonuses to the bone is one of the few tools that Goldman can use to keep the ratio under control. It has already cut salaries for its London partners and is also cutting thousands of jobs.However, its third-quarter revenues are expected to have fallen by about half compared with the second quarter, putting the ratio under pressure.

Big salaries were offered to tempt bankers to join firms such as Nomura and Barclays Capital, meaning they are now lumbered with higher fixed costs.

And if you thought #ccupyWallStreet was bad, wait until Wall Street's chief (i.e. always wrong) economists hit Detroit in #OccupyMainStreet: the natural response from Wall Street which will be clueless how to live without a 7 figure bonuses for being perpetually wrong on what America's GDP will be this or even last year.

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bania's picture

donut holes for you!

Fukushima Sam's picture

Naturally, at Goldman "almost zero" means "still more than you make in a year".

Comay Mierda's picture

occupy wall street is being hijacked by communists

traderjoe's picture

Who cares? Any protest is better than no protest. Let the system fail. Fight for liberty, freedom, and self-governance.

AchtungAffen's picture

Communists in the US? Ha! Don't make my ass laugh! You still see the hammer and sickle even on the soup? If only the US had communists, at least they would balance out the crazy right.

HelluvaEngineer's picture

ROTFLMAO at you criminals.

CrashisOptimistic's picture

It gets interesting when Cuomo and Bloomberg have a meeting with them to demand that they pay out huge bonuses.

The tax revenue on those bonuses are all that hold NYC and NY state budgets together.

GeneMarchbanks's picture

It's true, just confirmed. However, all employees get a complimentary 1000 troy oz gold door stopper so it all depends on how you look at it...

Slartebartfast's picture

If and only IF they can get GLD to deliver physical.

Good luck with that boys!

Ruffcut's picture

Being a squid and all, they alot up their multiple sleeves.

doomandbloom's picture

no wonder...loads of these rats are leaving GS in droves!!

Am wondering if they bargained for a joining bonus at their new jobs...

ljag's picture

Wait a second! I thought big bonuses were essential to 'keep the best and the brightest'?

doomandbloom's picture

But if you promise even bigger profits...they will give you joining bonus....

NotApplicable's picture

I'm wondering how much this is directed at 'keeping the best and brightest' out of jail before an election year?

hedgeless_horseman's picture

Goldman Sachs is planning to slash bonuses to almost zero...

"Almost" FTMFW!!!!!!!

junkyardjack's picture

$35 billion is almost zero for Wall Street

hedgeless_horseman's picture

Didn't Liesman almost quit fucking chickens?

tim73's picture

Ha ha...New York City will be soon like Detroit except Detroit will be better off. They still manufacture something other than BS. Back to the 70's...

Smiddywesson's picture

Back to the 70's...heehee, good thing I saved all those disco records.

Blorf's picture

Executives vow to prop up stock price at expense of bonuses?  Didn't Tyler say that many of the executives took out loans against their stock/warrants when it was in the 160s?  I guess they are just eating their own now.

They should just keep looting the shareholders and take it private at 50 bucks.

b_thunder's picture

Poll:  What comes next

A) TARP 2.0

B) QE 3

C) Both


mjk0259's picture

Both - followed by QE4 QE5 and TARP 3.0 and TARP4.0 plus Euro TARP and then Asia TARP - to be paid for by eliminating Social Security and Medicaid and compulsory "community service" from everyone.

JW n FL's picture



To Little, too fucking late..

I want their heads, ALL OF THEM!

Nothing less than Blood will undo what has been done.


POMO is the Bonus that just keeps on giving transaction fees.

JW n FL's picture



MSNBC's Dylan Ratigan on The Federal Reserve, Media Censorship, Bilderberg @ #occupywallstreet

Uploaded by on Oct 3, 2011

It's Time to GET MONEY OUT of politics. Learn more at

Help We Are Change produce more videos like this and continue our coverage of #occupywallstreet

JW n FL's picture



for those of you that will not take the time to watch this..

I will say that "IF?" Dylan is real.. and not a band aide..

and he keeps pushing his agenda / amendment.. he will be having a car accident, mugging and / or heart attack and most likely all at the same time.

that is how good his idea is for us, the People.



WTF? no bonus? no more money to steal? how can this be?

Smiddywesson's picture

If you don't get a bonus for doing God's work then nobody should.  It's just being fair.

snowball777's picture

Good start, but we want handcuffs and hard jailtime.

reader2010's picture

Fuck em. Jubilee!

dwdollar's picture

Damn, you know shit is about to hit the fan when God doesn't pay his employees enough.  /sarc

lapedochild's picture

exactly... this is pure blasphemy!

TradingJoe's picture

ISM came out and we were almost green :))) me think every upward move, WILL BE SOLD!

On GS, would not surprise me to see Ukranin Hockers having a "discount day", for old times sake :)))!

azzhatter's picture

I think they should receive death sentences instead

snowball777's picture

They should be sentenced to cleaning every truckstop restroom in America until death...with their tongues.

Esso's picture

Don't forget their families.

Nits make lice.

flattrader's picture

Yes, we must think of the children.

Won't someone think of the children?

buzzsaw99's picture

hank paulson got three quarters of a billion tax free bitchez. they should give up bank holding company status, take the company private, and freaking prop trade 'til they drop. What's that you say? They can't do that? Oh, I see...

tim73's picture

These traditional stock markets really do not offer anything meaningful for companies anymore. IPO costs a fortune and all those laws and rules are ridicilous to follow, needing an army of lawyers AND accountants. Usually from one of the awfully expensive big fours which together wrote those stupid laws in the first place. Good for them, bad for everybody else. 

PaperBear's picture

Couldn’t happen to a less deserving bunch.

Sophist Economicus's picture

But, but, how can this be?   I mean, aren't they manipulating everything and always on the right side of the trade?    LOL

buzzsaw99's picture

Yes, they are. when they lose they become a bank holding company. privatize gains, socialize losses.

Sophist Economicus's picture

I agree,  the incestuous wall street/washington relationship has got to go.    But when I read some of the TPTB comments, I just LOL.    Without the deliberate and direct collusion with government (who are supposed to represent OUR interest), "TPTB" couldn't find their ass with their two hands either...

DeadOnArrival's picture

I'm curious to know what Bernie Madoff is thinking about all this.  We can only hope that very soon he'll have more bankster buddies coming over for more than just a visit!

Problem Is's picture

Bernie on Lloyd:

"And they call me a fucking crook..."

slaughterer's picture

What?  No perp walk for GS yet?

Quinvarius's picture

You can tell the "expert network" takedown closed off a lot of leaks.  All the big cheaters have been blowing up without their leak pipeline.  Soros, GS, Pimpco, JPM, total suckage without inside knowledge of Fed actions.

Sudden Debt's picture



Why don't they just fire the working staff and transfer their salaries to the bonusses of the traders?

It's pretty easy:

1. Wait untill it's friday

2. Delete all access card to the building on saturday

3. Take a 2 week vacation to let the dust settle down


DavidC's picture

Sudden Debt,
Brilliant! And very funny!


Rainman's picture

Residential fire sales coming to the Hamptons. Pigmen caravans migrating to the West. Glorious news.