How Goldman Can Rehabilitate Itself: Go Private
October 16, 2009
I have to say, I'm underwhelmed by the ideas the company is tossing around so far. Per this morning's Times piece: Goldman said Thursday that it would donate $200 million to its charitable foundation (that figure represents 6 percent of its third-quarter profit, or about six days of earnings). Rumors are swirling on Wall Street that Goldman might donate even more money to charity, perhaps as much as $1 billion, in an effort to defuse public resentment directed at the bank. Mr. Blankfein has even urged his free-spending bankers to be mindful of conspicuous consumption.
Is Tarp Scaring Off Goldman's Best And Brightest?
April 14, 2009
That's certainly the line Goldman CEO Lloyd Blankfein is pushing. Thanks to the strings attached to the TARP (i.e., bailout) money they've received, banks like Goldman face restrictions on how much they can pay their 25 best-compensated employees (more or less). As I understand them, the restrictions don't limit pay per se, but do limit the size of a bonus to one third of overall compensation, which is meaningful since that's where most of these guys make their money.