Sunday, July 19, 2009

The Crisis Is Over and We Can Continue on Our Merry Ways

At least Goldman Sachs thinks so, to judge by its reported decision to pay the largest bonuses in its history. What has it been? 9 months since the economic world was ending? Now, things are back to normal and the money is rolling in again. Goldman has proven once again that it is more important than our government as the administration seems content with the status quo ante and is unwilling to really confront the compensation issues that played a major role in the crash.

Lucian Bebchuk has an excellent article as to the problems associated with the compensation structure of Goldman and its ilk. He echoes my concern relative to compensation issues and proposes some sensible reforms in the area.

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