Supposedly.

Goldman Sachs is planning to slash bonuses to almost zero amid growing expectations that the Wall Street bank is about to slide into the red for only the second time in its history…Goldman’s senior executives are determined to prove that the bank can continue to generate bigger returns for shareholders, despite the market turmoil. They have made an internal commitment to ensure that no more than 35 per cent to 45 per cent of its revenue is paid to staff — a lower proportion than any other Wall Street bank. The ratio of staff pay to turnover is the key metric used by analysts to determine the efficiency of an investment bank.

Cutting bonuses to the bone is one of the few tools that Goldman can use to keep the ratio under control. It has already cut salaries for its London partners and is also cutting thousands of jobs. However, its third-quarter revenues are expected to have fallen by about half compared with the second quarter, putting the ratio under pressure.

Bruised Goldman slashes bonuses as they slide into red [The Guardian via ZH]

52 comments (hidden for your protection)
Show all comments ↓

Comments (52)

  1. Posted by Guest | October 3, 2011 at 3:28 PM

    It is truly the end times.

    – Guy who hopes the Occupy Wall Street idiots don't hear about this and think they had anything to do with it

  2. Posted by pazzo83 | October 3, 2011 at 3:35 PM

    We'll see your sliding into the red and raise you a drowning in the red.

    - BAC

  3. Posted by JKarl | October 3, 2011 at 3:39 PM

    Thank you #OccupyWallSt for truly making a difference and fighting the corporate bankster powers that be. It's amazing that within a number of days bank stocks have already began to feel the wrath of the 99%. It's an amazing thing to watch.

  4. Posted by A corporate bankster | October 3, 2011 at 3:45 PM

    #OccupyMyButthole

  5. Posted by Guest | October 3, 2011 at 3:46 PM

    Why don't they just fire compliance, legal counsel, hr and stop all legal and regulatory proceedings against former employees? That should help save some dough.

    - Anonymous

    Posted from Matt's iphone.

  6. Posted by pazzo83 | October 3, 2011 at 3:50 PM

    I agree, it is amazing. Now could you guys get out of the way so my motorcade can pull up and take me to my sea plane parked on the East River?

    - L Blankfein

  7. Posted by guest | October 3, 2011 at 3:54 PM

    Oh please. Go tell one of them that she's gotten through to you and she's special and different. At least then you can stay in her parents' basement when your midtown $3K/month place is too expensive.

  8. Posted by Wow | October 3, 2011 at 4:02 PM

    Lloyd let me know if you need some more TARP money to pay bonuses this year.

    - Henry Paulson

  9. Posted by guest | October 3, 2011 at 4:04 PM

    "…when your midtown $3K/month place is too expensive. If it sounds like I know what I'm talking about it's because I do."

    fixed that for you.

  10. Posted by pazzo83 | October 3, 2011 at 4:04 PM

    I might be able to arrange something as well. You know where to reach me.

    - B Bernanke

  11. Posted by Your Accountant | October 3, 2011 at 4:07 PM

    The good news is that you're still 10-15 bucks in the money on those 2008 restricted stock bonus shares!

  12. Posted by Alt_EST | October 3, 2011 at 4:09 PM

    Your new bonus is the inflated sense of self-esteem, perceived moral superiority, and general feeling of being better, smarter, and faster than anyone else.

  13. Posted by UBS | October 3, 2011 at 4:09 PM

    I'll see your raise, and call …. dammit, where's the life preserver, I can't tread water and hold chips at the same time!

  14. Posted by Bandersnatch | October 3, 2011 at 4:10 PM

    Inconceivable!
    - Guy that looks like LB

  15. Posted by Guest | October 3, 2011 at 4:13 PM

    Restricted stock =/= Stock Options

  16. Posted by Guest | October 3, 2011 at 4:14 PM

    What exactly is a bankster? Do they wear trenchcoats and carry tommyguns? Do they have ironically cute knicknames given their penchant for violence and follow perjorative sentences with the interrogative "see?"

  17. Posted by Mexi_Cant | October 3, 2011 at 4:15 PM

    How do they afford new Honda Civic's every year if they don't get bonuses? I don't get it.

    -UBS Quant M.D.

  18. Posted by pazzo83 | October 3, 2011 at 4:16 PM

    He forgot to sign it "Arthur Andersen"

  19. Posted by Guest | October 3, 2011 at 4:24 PM

    Sucks to suck

  20. Posted by PermaGuestII | October 3, 2011 at 4:27 PM

    Chips should be served with beer, or at most white wine, but not red.

    -former BSC risk manager

  21. Posted by Guest | October 3, 2011 at 4:33 PM

    No bonuses is the KNI, I have always just been a little ahead of the curve.

    -Ossy G.

  22. Posted by abacus | October 3, 2011 at 4:57 PM

    I'll emergere unscathed from this.

    Fabs

  23. Posted by Guest | October 3, 2011 at 5:04 PM

    Telling children of parents with multiple degrees to screw you in the butt is the NKI

  24. Posted by TOF | October 3, 2011 at 5:39 PM

    I like my bonus like I like my women…

    Extremely thin and full of hopes and dreams.

    -UBS employees in general

  25. Posted by Butthead | October 3, 2011 at 5:50 PM

    I hate things that suck.

  26. Posted by MeVC | October 3, 2011 at 6:00 PM

    Jean-Luc Picard is in charge now.

  27. Posted by Sergei | October 3, 2011 at 6:19 PM

    In Soviet Russia, bonus is you not get cut to bone.

  28. Posted by celestus | October 3, 2011 at 6:35 PM

    So first years get to work 80 hour weeks for narrowly more than their buddies in consulting? Ouch, ouch, ouch.

  29. Posted by Sergei | October 3, 2011 at 7:03 PM

    Goldman in essence is betting a lot of their people won't go elsewhere, they may not want to go to other places on the sell side but some of them may be able to make more money on the buy side

  30. Posted by Best is yet to come | October 3, 2011 at 7:09 PM

    Yeah, and after that -when everyone realizes FS ROEs are going to flatline at 5% for the next 25 years, you will have to go look for a job in the real world and you will be treated like a mass-murderer with congenital herpes. And that's assuming you are an attractive tall blonde with with and charm.

  31. Posted by Guest | October 3, 2011 at 7:14 PM

    Damn it feels good to be a bankster

  32. Posted by Ragnar | October 3, 2011 at 7:40 PM

    Or even worse, Taibbi.

  33. Posted by guest | October 3, 2011 at 9:16 PM

    GAWDAMIT! why couldn't we back a politician who would keep the status quo get me that bearded little GIMP on the phone RIGHT NOW!

    Looser Blankfienk

  34. Posted by guest | October 3, 2011 at 9:32 PM

    Bankster: any AHOLE sitting in front of a screen clicking a mouse to earn a living. When the Bankster bets wrong they then go crying to their bought off politicians and get welfare for the rich, they are no better than the masses of Maloofs in the Ghetto getting welfare. They are DESTROYING the USA. We who are fighting the Banksters have God, Gold and if the first 2 don't work out, GUNS (plus lots of ammo) for the Banksters/Maloofs who are like LEACHES on the once great society that the USA once was. FIAT currencies are fast dying throughout the world, the king currency is the USD and the people who prepare properly will survive this failed experiment. The Banksters will end up in the same boat as all the Maloofs, sitting on their asses and crying for handouts that will never arrive, this is not what created America, the people of "Flyover" land will survive like thay always have, enjoy what you had, you WRECKED a great system and now CHANGE will come, there is no HOPE left for many of us.

  35. Posted by Guest | October 3, 2011 at 9:52 PM

    Wrong website, Daily Kos is over that way

  36. Posted by guest | October 3, 2011 at 10:33 PM

    No real bankers use the mouse.

  37. Posted by Beast from the east | October 3, 2011 at 10:58 PM

    No bonuses are definitely going to make it harder to do God's work.

    - LB

  38. Posted by ETFDude | October 3, 2011 at 11:26 PM

    Yah maaan, you tell your Daddy what you think about him and his bankster job that was more important than your little league games.

  39. Posted by BlipBlop | October 4, 2011 at 12:16 AM

    So by your first definition, everyone is a "bankerster" seeing as how anyone with a job has to use a computer to perform their job.

  40. Posted by BlipBlop | October 4, 2011 at 12:18 AM

    FUCK!

    -K 2 the Ball

  41. Posted by dbdt | October 4, 2011 at 2:16 AM

    As are HuffPo and RS

  42. Posted by former WS intern | October 4, 2011 at 2:50 AM

    The real world sucks fellas! Welcome back!

  43. Posted by TheBunnyOfDoom | October 4, 2011 at 5:53 AM

    God I hate those a**hole banksters at google and facebook…Clicking their mouses, and sitting in front of their screens. Jerks.

  44. Posted by God | October 4, 2011 at 7:18 AM

    Do my work bitch!

  45. Posted by observer | October 4, 2011 at 7:27 AM

    When does GS start sucking as much as other firms are supposed to?

  46. Posted by HFguy | October 4, 2011 at 8:27 AM

    factually incorrect. You can not front run yourself on buy side.

  47. Posted by Cut Me | October 4, 2011 at 9:08 AM

    Yes. Yes it does.
    -P. North

  48. Posted by guest | October 4, 2011 at 9:11 AM

    ^This man knows what he's talking about.

    -A to A

  49. Posted by ScottyDoesKnow | October 4, 2011 at 10:00 AM

    You don't have God on your side…only I do!

    - Lloyd

  50. Posted by Ben | October 10, 2011 at 10:49 PM

    The government wishes it could give more TARP money to Goldman. It was the best investment they ever made at over a 30% return in only a few months. And everyone seems to forget that both Goldman and JPMorgan didn't want the money–Paulson forced them to take it so that the others would not feel a "stigma" for doing so: http://www.msnbc.msn.com/id/30750868/ns/business-

  51. Posted by Bristol Airport Hotels | April 19, 2012 at 5:15 AM

    Yld2Cq Thanks so much for the article. Will read on…

  52. Posted by cheap bookmarking service | September 20, 2012 at 4:13 PM

    r4Xydb Thanks-a-mundo for the blog.Thanks Again. Will read on…