I assume a lot of people here read the "How Goldman Won Big On Mortgage Meltdown" on Friday. In that article it says, "The group's big bet that securities backed by risky home loans would fall in value generated nearly $4 billion of profits during the year ended Nov. 30, according to people familiar with the firm's finances. Those gains erased $1.5 billion to $2 billion of mortgage-related losses elsewhere in the firm."
Then says,
"This year, the three men are expected to be paid between $5 million and $15 million apiece, people familiar with the matter say."
This seems WAY out of line for $4bn in revenues. Are they not partners, so not eligible for huge payouts? I have heard stories of guys running prop desks at GS that only made $1 or $2 billion getting easily $50 to $100. Why do the numbers not add up here?
I am just wondering how these things work. Thanks
