The problem with Goldman (GS) bonuses: Beyond the generic problem that bonuses are usually based on an un-risk-adjusted IRR, the problem with bonus for banks in general, and Goldman in particular, is that the government is backing short-term bank borrowing, and so banks can borrow at very depressed rates and make a lot of money on spreads. This seems more like playing the government than playing the market.
By Richard K. Green|Nov 9, 2009, 2:43 PM
- Share:
- Buzz
- Stumble it!
- Buzz
- How Health Reform May Play Out: 75% Odds of Enactment; 25% Odds of Failure
- Greek PM: Greece One Step From Being Unable to Borrow
- Cintas: How High Will It Go?
- The Mason-Dixon Line in Health Care Reform: Economists Edition
- Why Am I Not Surprised, Again?
- Gold Role Reversal: Central Banks Now Net Gold Buyers
Leave a Reply
Advertisement
- tom .. http://www.youtube.com/watch?v =11WlFlO_mDg Dollar, Paul Krugman Krugman is a moron.
- looking for free luch .. But what would Greece be without the euro? It is great to criticize the...
- CrisisMaven .. This “fear of deflation” is largely nonsensical. Deflation does not...
- TaosJohn .. Interesting. Yet today when it seems likely that this stinking bill will pass,...
- Chris Lane .. “Arctic sea-ice loss is accelerating beyond the worst case scenarios of model...
- Gary .. That’s a very thoughtful response so let try to be the same as devil’s...
- pgb .. Enough with Madoff already. I saw there’s now a Madoff coloring book on Amazon.
- RW .. I’m pretty sure Lawmakers knew China has been manipulating currency for a while. Just...





