Big bonuses...the Return!

After reading the news this week I've asked myself whether the big bankers have really felt the crisis? Wondering if the word "humility" has ever been taught in their minds. Goldman Sachs especially, has taken the attention of the financial media after reporting a significant profit in the last quarter. of course, media and not only were divided regarding the big compensation plan that big banks will give to their employee at the end of the year, focusing with attention to Goldman. While the world's recovery seems to see the light at the end of the tunnel, Goldman seems to be much further enjoying already their bonuses in a "Hawaiian island".
Even though Goldman has performed extremely well after crisis that affected the global financial system even better than its prime competitors, it is not realistic that after the biggest financial crisis in recent history one of the biggest investment bank gives a $20 billion in compensation. The comments of the CEO Blankfein and chief financial office of Goldman was that "Due to the extremely well performance throughout the crisis of our employees they deserve this kind of compensation to keep them happy to be with us". Adding that "we are very aware of what is going on in the world". The question to ask here is "Were you aware before the crisis commenced"? Obviously, politicians and general public view disagree towards this type of compensation, (bearing in mind the help Goldman received by the taxpayers during the crisis when it needed government's help) Making them reflecting about how such paychecks can bounce back so quickly despite the good profit made.

Media analysis:

The Wall Street Journal reflects its view by showing the whole situation with detailed numbers stating Goldman's comments and external points of view. it referred to the good moment of wall street which helped Goldman to build assurance on its performance. Despite stating that it has played a role in causing the meltdown which then has been helped by the government and also despite the regulatory scrutiny of Wall Street's pay culture.

Reuters explained especially the way it got to earn those big big profits. and how Goldman will distribute the compensations despite the general critical view. It also wrote who will get the biggest payouts from Goldman, such as currency, commodities and fixed income traders. In addition, it stated as well as the Wall Street Journal the donation made by Goldman to the charity Goldman foundation of $200 millions.


Bloomberg's point of view was the most "interesting" article to read. In fact, the writer was clearly against this exaggerated compensation. His analysis is very critical about the matter and i think that rarely you can read such a criticized article. The writer pointed out in 5 points on how the amount of the compensation should be spent instead. And I think that the 5 points made were absolutely fair either for the general reader and for the shareholder right. He explains how the CEO of Goldman should move towards a believable behaviour. He then admits that Goldman was the only one in paying back the help $10 billion made by the government, which main competitors did not yet pay back like Citygroup and Bank of America. to conclude his point of view he ended up saying "The pay culture may change on the rest of Wall Street. Not at Goldman Sachs".

My conclusion is that Bloomberg's writer was definitely the most exciting to read due to his critical view and opinion about the matter and how wall street is not reacting as it should to this matter. Although The Wall Street Journal and Reuters gave a balanced opinion in regard giving many exterior opinion about the fact, whereas the Bloomberg's did not. It depends from which kind of readers we have in front, But personally I'd o for the Bloomberg's view due to his passion that put in his article.


REFERENCES:
-Reuters site:
http://www.reuters.com/article/financialsSector/idUSN1531732720091015

-Bloomberg site:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a6arFvXkIf_8

-Wall street Journal printed copy