Wall Street Folly

Goldman Sachs Group Inc. (GS) has added something new to the laundry list of financial risks it faces: unflattering attention.

In its annual report, the New York company said “adverse publicity” could have “a negative impact on our reputation and on the morale and performance of our employees, which could adversely affect our businesses and results of operations.”

The unusual disclosure in a 12-page section of “risk factors” ranging from rocky financial markets to natural disasters is the latest sign of Goldman’s whipping-boy status among rivals, lawmakers and angry Americans because of the firm’s giant profits……

Warren Buffett has thrown his weight behind Goldman Sachs and its chairman Lloyd Blankfein, arguing the investment bank has a “place in the universe”.

Mr Buffett, who has run the Berkshire Hathaway conglomerate since 1965, dismissed the political and public backlash against Goldman, praising Mr Blankfein and the bank’s business model…..

“I don’t like that,” he said in relation to the size of the fee, “but they have that sort of market position and… Goldman Sachs has a very strong market position. Lloyd Blankfein, you cannot find a better manager.”….

Goldman exceeds trading record - FInancial Times

….Goldman’s 131 $100m-plus trading days during 2009 shattered the bank’s previous high of 90 days. In last year’s 263 trading days, the bank lost money 19 times, Goldman said yesterday in a regulatory filing. The daily losses never exceeded $100m…..

Two of HSBC’s most senior investment bankers were paid more than £9m each last year, despite the public backlash against bonuses, as the bank recorded pre-tax profits of £6.9bn.

Stuart Gulliver, who runs HSBC’s global banking and markets business, received £9.3m, making him the bank’s best paid employee, followed by head of global markets Samir Asaf, who took home a bonus worth more than £9m…..

Tags: Bonuses, Compensation, Goldman Sachs, HSBC, Lloyd Blankfein, Warren Buffett