Goldman Sachs being scrutinized
Government regulators looking into pay practices
NEW YORK – Goldman Sachs Group’s famously gold-plated bonuses are coming with a little something extra this year – unwanted scrutiny from the government.
Just a few weeks after reporting record quarterly profits and a bonus kitty of more than $11 billion, Goldman revealed in a government filing that regulators are looking into how the firm doles out compensation.
The company wouldn’t reveal Wednesday which agencies are examining its pay practices or what exactly they’re investigating.
But some regulators and lawmakers are perturbed that institutions that got government assistance during the financial crisis have turned around so soon after to uncork huge bonuses.
Goldman got $10 billion in aid from the federal government’s Troubled Asset Relief Program last year. And even though it repaid the money plus dividends this year, critics have held up Goldman as a symbol of Wall Street greed.
“It raises suspicion when we’re talking about so much money coming directly (after) a firm bailout by taxpayers,” said Richard Ferlauto, head of corporate governance at the American Federation of State, County and Municipal Employees.
A published report Tuesday said Goldman’s chief executive has instructed employees to mute their conspicuous consumption for fear of whipping up additional public scorn.