Goldman Sachs reports profits and huge bonuses

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We support reforms to the financial marketplace that protect consumers from unscrupulous banks and lenders.

By Consumers Union on Wednesday, July 15th, 2009

Guest Blogger Arone Silverman

Goldman Sachs just released profits of $3.44 billion, blowing away all of the most optimistic expectations. With the added profits, the financial mogul has announced it will set aside $11.9 billion for employee bonuses in the first half of 2009. That’s nearly $400,000 each, on average, for its roughly 29,400 employees and temporary workers. That level of per-worker compensation is close to what it was in mid-2007, when Wall Street was booming.

It’s discouraging to know that during a time when the U.S. is going through a serious recession – effecting millions of Americans – and the government is dealt with bailing out the financial industry due to poor regulation, the very people that spend countless dollars to lobby against consumer protections in congress is rewarding it’s staff for the past year. These are the very same people who fight to keep predatory lending practices in place and put the consumer at a financial disadvantage.

There’s no doubt that during a recession, showing a huge profit can be a great thing. But, the whole situation is soured when the profit is recycled into an institution that continues to engage in the same deceptive tactics that drove people from their homes and pushed businesses into bankruptcy. This is why we need a Consumer Financial Protection Agency. (CFPA)

Consumers Union is working to ensure that the government’s financial intervention and regulatory restructuring during this growing financial crisis includes protections for taxpayers and consumers. An essential piece of this plan is the Consumer Financial Protection Agency which will have the authority and accountability to make sure that consumer protection regulations are written fairly and enforced vigorously.

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