Goldman Parties Like It's 2007

Bad business is somehow good business for Goldman Sachs, which posted a record $3.44 billion profits last quarter despite a flagging economy. But the giant profits could give way to popular resentment when the bank's employees receive their bonuses. Some $11.4 billion is earmarked for employee compensation so far, meaning that workers would earn an average of $770,000, close to their payouts were before the recession. Because Goldman paid off its loans from the government, it doesn't have the same restrictions on bonuses as other banks. But that doesn't mean the bousus wouldn't present a public-relations disaster. Another issue at hand is that these profits, which come with higher risks than other banks, could encourage its rivals to overextend themselves trying to match Goldman.