A successful first half of the year at Goldman Sachs suggests that the bank holding company could pay out record bonuses at year-end, according to the Guardian. The banker, which recently paid back federal Troubled Asset Relief Program (TARP) funding, has said its outlook shows that profits as well as bonuses will reach a new peak at the end of 2009.
Goldman, which recorded a Q1 2009 net income total of $1.8 billion, has benefited from a lack of competition in the once-thriving banking sector, as well as revenues generated from lucrative currency trading. July will see the release of the firm’s second-quarter profits, which are expected to be impressive.
Goldman has told staff that they will receive record bonus hikes should the firm continue its run of profit. Company CEO Lloyd Blankfein said in a letter tot lawmakers last week that Goldman must “ensure that compensation reflects the true performance of the firm and motivates proper behavior.”
Staff numbers at Goldman total approximately 28,000; over 900 employees were paid bonuses of $1 million or more last year, in spite of the recession.