The Activists Editorial Collective | Reader Supported News | January 25 2012

OPINION | Goldman Sachs has heeded the advice of a political statement attributed to Law professor William Black, “the highest return on assets is always a political contribution.” It is widely known that Goldman Sachs dictates legislation, oversight and enforcement upon the United States economy; simultaneously preforming the roles of the SEC, Congress as well as the Federal Reserve. In 2009 Goldman Sachs had the most profitable year in its history, and this post-crisis record was available because of the charter set up by Henry Paulson (the Treasure Secretary that was previously CEO of the bank the legislation is bailing out) and Timothy Geithner. Both names ring synonymous with Goldman Sachs even though the latter has never been directly employed in the banking industry. The recognition of Goldman Sachs influence on the Executive Branch is found in Michelle Malkin’s April 2010 article, “All the President’s Goldman Sachs Men.” The article illuminates Goldman’s cozy relationship with the Obama Administration noting his financial strategists consist of Larry Summers, Timothy Geithner, Gary Gensler and Mark Patterson.

Setting aside mortgage fraud, dangerous derivatives, and insider trading (among the ever growing list of criminal allegations against Goldman Sachs) the bonuses awarded post-bailout reveal rampant corruption. However, the problem is not Goldman Sachs, JP Morgan nor Bank of America. The problem is the political structure, particularly the financial arm of the US Government, sustains and solely serves the banks as opposed to its constituents. Goldman Sachs collapsed the economy and drove the country into a recession while doling out executive bonuses at a rate that was double the corporation’s yearly earnings. Another recession is guaranteed by the greed and corruption of the only individuals with the political power to stop it. The United States Treasury is Goldman Sachs.

Breakdown of Goldman Sachs 2008 bonuses from the Attorney General’s report

Tarp funds received: $10 Billion

2008 Earnings: $2.3 billion, or $4.47 a share.

2008 total bonuses: $4.82 billion (includes $2.24 billion in cash)

• The top four received a combined $45.9 million
• The next four received a combined $40.81 million.
• The next six received a combined $56.40 million.
• Number of individuals that received more than $10 million: 6.
• Number that received more than $8 million: 21.
• Number that received more than $5 million: 78.
• Number that received more than $4 million: 95.
• Number that received more than $3 million: 212.
• Number that received more than $2 million: 391.
• Number that received at least $1 million: 953.

Related articles

• Goldman Sachs Group Crushes Estimates (dailyfinance.com)
• Goldman Sachs slammed for paying £240K bonuses to all its bankers (thesun.co.uk)
• Goldman Sachs, Morgan Stanley cut at J.P. Morgan (marketwatch.com)