Goldman Sachs to pay $20 billion bonuses in stock, not cash

Tom Johansmeyer — Fri, 11 Dec 2009 09:40:00 EST

Filed under: JPMorgan Chase (JPM), Goldman Sachs Group (GS), Recession, Financial Crisis

Maybe Goldman Sachs (GS) does care what outsiders think about it. The company has come under plenty of fire this year for its post-financial crisis bonus payments, especially after having accepted TARP money from the government. In order to keep the world off its back, the bank is going to pay managers their annual bonuses in stock this year instead of cash.

And the stock issued will have to be held for five years. So, recipients will have a long-term stake in the company. But it seems they're being compensated for that, too as GS is spending a total of over $20 billion in compensation.

Continue reading Goldman Sachs to pay $20 billion bonuses in stock, not cash

Goldman Sachs to pay $20 billion bonuses in stock, not cash originally appeared on BloggingStocks on Fri, 11 Dec 2009 09:40:00 EST. Please see our terms for use of feeds.

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Second stimulus check gains momentum on Bernanke testimony

Joseph Lazzaro — Tue, 21 Oct 2008 11:45:00 EST

Filed under: Forecasts, Politics, Recession

A second stimulus package would help lessen the effects of a U.S. recession, many economists -- including the Chairman of the Fed -- agree, but whether Congress can pass one by year's end remains an open question.

Fed Chairman Ben Bernanke boosted a second stimulus package's prospects by arguing in Congressional testimony Tuesday that the likelihood of a protracted slowdown stemming from weak U.S. economic fundamentals, aggravated by the financial crisis, convinced him to support a new round of fiscal stimulus, Bloomberg News reported.

Bernanke underscored that he was commenting only on a potential fiscal stimulus package's economic impact/merits: the decision to approve/reject a package and the composition/form of any package remains the decision of Congress.

Second stimulus check ahead?

What are the chances taxpayers will receive a second stimulus check/tax rebate?

Economist David H. Wang told BloggingStocks Tuesday the worsening economy "appears to be shifting the political winds in Washington and they [elected officials] may very well pass a second stimulus package."

"I think the prospects of a $150-$200 billion stimulus package passing are pretty good," Wang said. "The main problem is unemployment. Retail sales are down and businesses are trimming back payrolls, which means unemployment will continue to rise. Rising unemployment is bad news for earnings and for the economy, so any stimulus package that creates jobs would be a help. The stimulus could also provide a refinance provision to allow homeowners to refinance mortgages with Fannie Mae and Freddie Mac at lower rates of, say, 5.5-7%."

Bernanke's testimony occurred on the heels of a White House about-face on a second package. The Bush Administration is now "open to the idea" of a second package, White House Press Secretary Dana Pirino told Bloomberg News Monday.

Continue reading Second stimulus check gains momentum on Bernanke testimony

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