Goldman Sachs Doles Out Big Bonuses
Goldman Sachs will pay about 50 executives bonuses of $25 million or more, according to CNBC's Charles Gasparino.
Much of the big money will be paid to traders--particularly commodities traders, people familiar with the situation told Gasparino.
"This is why every mother wants their kids to work at Goldman Sachs," Gasparino said in an installment of "Street Stories" on CNBC's "Power Lunch."
"Let's face it, Goldman Sachs is the premier investment bank on Wall Street. It is the premier trading house on Wall Street, and it is apparently the place that pays its people the best," he said (Play-By-Play: Goldman Sachs Wins Holiday Bonus Race).
While Goldman may be at the high-end of the scale, other firms are also paying their big producers as well. Morgan Stanley and Merrill Lynch also plan to reward their top producers. People told Gasparino that about a dozen people at each of these two firms will receive payouts in the $25 million range.
Right now, it’s unclear who will receive the biggest bonuses, Gasparino said. The investment banks declined to comment, and they don’t have to name their big producers unless they are top executives.
Fluctuations in the price of crude oil this year created tremendous trading opportunities for commodities traders, and likely contributed to the bigger bonuses for this group.
"It’s interesting to note that Goldman CEO Llyod Blankfein comes from the commodity trading operations at Goldman," Gasparino said.
"Goldman Sachs, Morgan Stanley, Merrill Lynch are in a tough spot," Gasparino said, "if they don't pay these people the money, they're going to go to a hedge fund, into private equity, or start their own hedge fund and make money somewhere else."