A shareholder derivative complaint filed by Security Police and Fire Professionals of America Retirement Fund and Judith A. Miller Living Trust is accusing Goldman Sachs Group Inc. executives of breaching their fiduciary duties for failing to modify the investment firm’s compensation policies according to the best interests of shareholders.
Goldman’s usual policy is to place 44-48% of its net revenue in employee compensation, which includes bonuses. The plaintiffs say these breaches were even greater this year because of federal funding that the investment bank received in 2008 and 2009. According to the complaint, this means that although the firm's revenues are not related to employee performance, Goldman executives are still being rewarded for corporate performance.
Goldman Sachs was the recipient of a $10 billion TARP loan. Pension fund officials claim the investment firm’s revenue for the year can largely be attributed to taxpayer money. In 2008, Goldman generated $29 billion in cash by issuing debts that the Federal Deposit Insurance Company had insured. It then obtained money from contractual counterparties that got their assets from taxpayers.
http://www.stockbrokerfraudblog.com/2009/12/goldman_sachs_executives_sued.htmlWhy did Goldman need taxpayer money at all?
Why didn't they dig into their own executive's pockets to bail out the company?
Why did Goldman need the AIG pass through money?
Who's looking out for taxpayers?
Why did Goldman get any money from taxpayers?
Anyone check the financials before writing all those taxpayer checks?
How is it possible that AIG and all those counterparties got screwed? Who sold them on those derivative and other financial products?
Just doesn't make sense, unless you're Goldman Sachs.
Who's looking out for taxpayers?
