Franky on Finance

Banking giant Goldman Sachs, the world’s most profitable bank, known for having the best-paid employees in the City, admitted its pay and bonuses fund had shrunk by more than a third compared with this time a year ago (and by half so far this year) even though it had managed to avoid the credit crisis by selling off most of its subprime mortgages last spring.  Economists warn that if Goldman Sachs employees are suffering, it is likely bonuses for other City bankers could be disastrous this year.  This, as well as the 10,000 workers expected to be laid-off in the City this year will have a major impact on the London economy as big-spending bankers tighten their belts.  The knock-on effects are likely to be in the property and art markets as well as in London’s restaurants and shops.