Goldman Sachs (GS) Leads The Recovery With Some "God's Work"

Chairman and CEO of Goldman Sachs, Lloyd Blankfein avers that people are mad with bankers due to the economic downturn, but still believes that he is ‘doing God’s work’.

Goldman Sachs had a bad quarter last year and had to borrow $10 billion from the federal Troubled Asset Relief program, due to over lending. Blankfein, believes that his company pumps up prime companies by making available capital. Having earned a record $68 million in 2007, in addition to $500 million in stock, he feels that compensation at firms like Goldman Sachs, along with individual ambition should not be capped.

The bank has paid back its bailout money and its employee bonuses are not capped. Blankfein asserts that at Goldman Sachs, pay and performance are very well correlated. It has not been a bank that pays without demanding performance. Blankfein feels that the $3.4 billion dollar second quarter profit of Goldman Sachs is a lead indicator of better days for the bank, the economy and everyone. However, shadow chancellor, Vince Cable says that firms like Goldman Sachs have a huge hold over the financial system, which is not healthy.