In mid-2010 Goldman Sachs was a senior adviser to the NTMA on the recapitalisation of the Irish Banks, following their poor performance in stress-tests.
Goldman Sachs is supposed to be monitored by the Federal Reserve Board – one of the most powerful and secretive institutions in the US. In 2012 a recently-hired employee at the FSB, Carmen Segarra was so alarmed by what she witnessed inside the Fed she obtained a tiny camera and began making secret recordings.
At this time the FRB in New York was trying to portray itself as a strong regulator, flowing from the banking meltdown of 2008. As part of its efforts to reform, the FRB commissioned a highly confidential report, written by Columbia Professor David Beim, that sought to identify why the US Regulator (FRB) failed in the years leading up to the 2008 crisis.
2-years ago, in 2013 Goldman Sachs Group announced that it was surrendering its Banking Licence back to the Financial Regulator, regulatory requirements were too onerous for this Global Banking Group. Even though this Group handed back its Banking Licence, it still managed to pay over a dividend of $50 Million to its parent firm.
2-months ago, in November 2014. Mark Carney the Bank of England Governor was commenting on the $4.3 Billion fines that had been imposed on Banks for the proven manipulation of Foreign Exchange markets. Mr Carney stated that Bankers’ salaries and their bonuses should be threatened if the offending Banks flout the new rules. These new rules restricted Bankers’ bonuses to 100% of their salaries, or alternatively to 200% (if shareholder approval ratified same).
However this week (January 2015) it was revealed that £367 Million was given as bonuses to 121 London-based members of bank staffs. Goldman Sachs was described as having “breathtaking arrogance” in its bonus-paying activities.
Goldman Sachs paid its top 121 London bankers about £3 million pounds (€3.8 million) on average in 2013, far exceeding pay-outs at other leading banks.
The remuneration figures mean that Goldman was easily the highest paying of 13 leading US, British, Swiss and Japanese banks in 2013.
Goldman, Citigroup and Credit Suisse all reported their 2013 remuneration figures in the past week, just before the year-end EU disclosures’ deadline.