Goldman Sachs staff to share $3.8bn in third quarter

Staff at US investment bank Goldman Sachs are to share US$3.8bn (€2.75bn) in pay and bonuses put by for the third quarter, the group revealed today.

Staff at US investment bank Goldman Sachs are to share US$3.8bn (€2.75bn) in pay and bonuses put by for the third quarter, the group revealed today.

The haul brings the total value of the pot earmarked so far for the first nine months of the year to $13.1bn (€9.5bn), although this is a 21% decline on a year earlier.

The figures came as Goldman posted net income of $1.7bn (€1.23bn) in the three months to September 30, up from $453m (€328.3m) in the second quarter.

This was down 43% on a year earlier, but better than expected in the market.

The third quarter staff pay and bonus bill - which includes salaries, estimated performance related payouts and payroll expenses - is broadly flat on the previous three months.

But it does mean Goldman's 35,400 workers are now in line for an average $370,056 (€268,184) each so far this year.

Last month the bank was hit by a £17.5m (€19.9m) fine by the UK Financial Services Authority for failing to tell the regulator that trader Fabrice Tourre was under investigation when he took up a job at the bank's London office in 2008.

The New York-based group, considered one of the strongest investment banks, saw trading revenues drop to $6.3bn (€4.5bn) in the three months to September 30 from $10bn (€7.24bn) a year earlier.

Goldman historically has had strong revenue from its fixed income, currency and commodities trading business that has exceeded market forecasts.

But the bank said the third quarter figures reflected lower results in each of the division's major businesses, including lower revenues in credit products.

Revenues in its investment banking unit were up, however, from $899m (€651.6m) to $1.1bn (€797.3m).

TUC General Secretary Brendan Barber said: "This latest round of bonuses make a mockery of the idea that we're all in this together. While millions face losing their jobs or having their public services slashed, those who caused the mess are back to bonuses as usual.

"If banks can afford to pay for this champagne lifestyle they can afford to pay some more tax, and spare the rest of us from eye-watering cuts."

Figures also out today from Bank of America showed the group made a loss of $7.3bn (€5.3bn) in the third quarter, as a result of changes to bank card transaction fees.

The company took a one-off charge of $10.4bn (€7.5bn) as a result of changes to card rules, wiping out what would have been a $3.1bn (2.24bn) profit for the third quarter.

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