Main Street

It’s Business as Usual on Wall Street

First quarter 2010 earnings reports have been rolling in from the big Wall Street banks, and thus far the combined profits from the four largest topped $15 billion.

This morning Goldman Sachs, which has been accused of securities fraud by the Securities and Exchange Commission (SEC), reported its first quarter earnings at $3.46 billion.

With its results, Goldman became the fourth major bank to report this quarter, all benefiting from hefty trading profits. JPMorgan reported a profit of $3.3 billion, Bank of America earned $4.2 billion and Citigroup $4.4 billion. (emphasis added)

“Hefty trading profits” indeed. The New York Times reports:

In the first quarter, the bank’s bond, commodities and currency trading once again bolstered the results.

In addition, Goldman said it had set aside 43 percent of revenue in the first quarter for employee salaries and bonuses, down from 50 percent for the period a year ago.

In a statement, the chief executive, Lloyd C. Blankfein said that the results reflected “more signs of growth across the economy and the strength of our client franchise.”

Like I said, business as usual. Need I add that these are the same firms that were allowed to run amok, building a house of cards on top of asset bubbles which, when it all came down, tossed 8 million Americans out of work, 7 million out of their homes and virtually destroyed the income security of generations of Americans?

And just what “signs of growth” does Mr. Lloyd C. Blankfein see “reflected” in these “earnings”? I’d venture to say it’s the growth in what’s lining his and his fellow bankers’ pockets.

Just check out the banksters’ case studies at the AFL-CIO’s Executive PayWatch 2010. Really – check it out.

Want to know how to fund a real jobs-growth recovery?
Three little words: Tax the Banks!

Tags: bank bonuses, Wall Street Reform