BANKERS' BONUSES AND GOLDMAN SACHS

That this House notes with dismay that the Goldman Sachs bank, having reported on 14 July record earnings of $3.44 billion, or £2.1 billion, for the second quarter, up 65 per cent. from the three months to 30 May last year, on revenues of $13.76 billion, has decided to set aside $6.6 billion for compensation bonuses for its senior bankers; further notes that the bank has indicated that if such growth is maintained, its staff could share total pay and bonuses of more than $22 billion, equating to a pay out of an average of $770,000 to each of its 29,400 employees; believes such obscene profits are made by encouraging the very reckless risk-taking that brought down or severely damaged several major banks, including Lehman Brothers, HBOS, RBS and Northern Rock in the credit crunch crisis; further believes that such massive bonuses run counter to the restraint urged by the Chancellor of the Exchequer and other Ministers on banks and other businesses in respect of bonuses; and therefore calls on the Government to halt any future contracts with Goldman Sachs until a more responsible approach to executive pay and perks is demonstrated by the bank.