Goldman Under Fire (Again): Ponzi Bonuses?

[WhiskeyGirl]

Goldman Under Fire (Again): Ponzi Bonuses?

Are we seeing once again the same game being played that WaMu played in the spring of 2007 - and which started me writing Tickers?

I didn’t follow these things in 2007, I was ignorant.  I wonder how many companies do these things?

In his lawsuit (PDF), Brown states that Goldman Sachs gave out $4.82 billion in bonuses in 2008, despite earnings of only $2.32 billion that year.  The lawsuit alleges that the company spent 259 percent of its income in the first quarter of 2009 on compensation.

The underpants bomber and Obama seem to have displaced this story in the news. 

How do I get a job at a great place like that?  One that gets a little help from taxpayers and AIG and give out popular salaries and bonuses, even in a bad year?

This is a bit different, in that nobody is (yet) claiming that Goldman (GS : 174.31, -3.36) doesn't have the money.  What's being alleged here is that they have effectively pilfered the public Treasury and then paid that out as bonuses, rather than doing with it as Treasury intended and their shareholders were entitled to, which is to use the capital to rebuild the firm's foundation and strengthen it against future potential losses.

Who’s looking out for taxpayers?  Geithner?  Barney?  Obama?

Read more here - http://www.istockanalyst.com/article/viewarticle/articleid/3767685

Maybe Goldman employees should form a union and pay union dues to insulate themselves?