Just nine months after the US banking system was in meltdown, Wall Street’s biggest surviving securities firm Goldman Sachs has announced an extraordinary rebound.
Its second quarter earnings surged and net profit was almost 2.5 billion euros. This year Goldman’s shares have risen in value by more than three quarters. It got seven billion euros in US government bailout money which has now been paid back so it no longer has restrictions on remuneration. The average pay and bonus package this year at the company is 650,000 euros. The other major US banks report their second quarter results this week, but since the crisis there are fewer of them which means the survivors have less competition. Analysts said that was one factor in Goldman Sachs’ big profits.