By paying the bonuses, Mr. Viniar said, the bank was trying to make a difficult “trade-off” between “being fair to our people who have done a remarkable job” and “also what’s going on in the world.”
“We are very focused on what is going on in the world,” he said. “We are focused on the economic climate. We are focused on what is going on with other people.”
Goldman Earns $3.19 Billion in Quarter
By GRAHAM BOWLEY and MATTHEW SALTMARSH
Just a year after surviving the financial crisis with billions in federal aid, the banking giant Goldman Sachs reported results Thursday that topped expectations and promptly went on the defensive about its bonuses.
In part to allay criticism of its profits and bonuses, Goldman announced a $200 million contribution to its foundation, which promotes education.
The bank said that it earned $3.19 billion in the third quarter, powered by mergers and acquisitions fees and equities trading. Revenue was $12.37 billion.
The earnings of $5.25 a share easily exceeded analysts’ estimates of $4.18 a share or $2.34 billion. Earnings in the corresponding quarter a year ago were $845 million on revenue of $6 billion.
“Although the world continues to face serious economic challenges, we are seeing improving conditions and evidence of stabilization, even growth, across a number of sectors,” the chief executive, Lloyd C. Blankfein, said in a statement.
Goldman also disclosed how much it had set aside for its annual bonus pool. It said that it had earmarked $5.35 billion in compensation and benefits, an increase from the year earlier period, putting it on course for a record payout to its executives by the end of 2009.
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