Well, if the kind of people who leave comments on blog sites can be honestly listened to, the majority is in. But is it a quorum? Some 23 of the 30 comments on Dealbook's blog call for a windfall tax on Goldman Sachs are in favor. Eight of the 12 comments on the WSJ's Hear on the Street advocating the same windfall tax are in favor. Another majority.
I was wondering when this was going to get up a head of steam. “Best year yet for investment banks!” Scream the headlines. Well, wouldn’t it be when there’s only one left? Steven Davidoff, the Deal Professor, the one writing for Dealbook, hits the nail right on the head when he says: In fact, let’s see how much money there is left to pay out in bonuses if a windfall tax is imposed.
After this windfall tax is paid, and it should be imposed on pre-compensation profits, Goldman and the rest of the financial institutions should be free to pay whatever bonuses it wants. If Goldman wants to pay bonuses on amounts that the federal government has deemed unearned by the firm’s cohorts, then Goldman can bargain with its shareholders over that issue. That is a discussion I would love to see. In the meantime, Goldman is now bargaining with its shareholders over paying bonuses that were not earned and is money attributable to the federal government’s efforts.
