Goldman Sachs suffered losses of $393 million dollars in the third quarter of 2011 revealing a significant turn for the worse for the investment bank.
The loss of profits in the third quarter was also accompanied with a haircut in bonuses and 'staff compensatory' fundÂ allocation with only $1.58 billion dollars for the staff facing extreme financial hardship *cough*.
This 59% drop in the fund for staff compensation allocation in the third quarter compared to the same time period last year will do little to alleviate the sentiment towards the bank which has former employees embedded in the highest advisory positions in central banks around the world.
The total assets of Goldman Sachs have increased in value (depending on whether you count derivatives and debt as value) from June's 2011 $937 billion to September's $949 billion and global core excess liquidity remained the same between the second and third quarter standing at $164 billion.
The end of the press release by Goldman Sachs also contained a gem of a comment which will I am sure inspire confidence in the company as investors slowly accept the fact that the world economy is in a depression and America cannot pay off it's debt.
“However, we believe the strength of both our client franchise and our balance sheet positions us well for when economies and markets improve.”……based on current market sentiment, Goldman should be in fine form in about another 300 years.
At this rate of loss the Goldman Sachs Chief Executive Lloyd Blankfein and other senior employees may have to endure levels of poverty not suffered by individuals of privilege since Ramesses II took a look in the treasury and decided to spruce up Egypt with a bit of building work.
Pi-Ramesses Blankfein coming to Wall Street, of course that is a silly suggestion made in jest, after all we know that the Goldman Sachs losses will be reflected in Blankfein's paycheck…….don't we?