Barclays & Goldman Should Tell Critics To 'Get Lost'

Barclays has done everything in can in order not to take UK government support (capital raising and asset sales). It actually returned a profit in 2008, and has strong reserves. This year to date, results are encouraging. So why are people having a pop ? This is a private company, and it is free to run its business as it sees fit. If bankers at Barclays Capital (which has delivered strong earnings for years) need to be paid well to keep them on the payroll (to help deliver strong profits in future years), then fine.

And if a bank is financially secure and well-managed (ie has its risks under control) and can afford to pay out big bonuses, we should be clapping our hands in admiration, not sitting in judgement. Remember, those big bonus bankers spend their money - their cash will filter down to shopkeepers, personal trainers, nannies and all manner of other ordinary people struggling to earn a living. We need more bonus cash in the system (not less). Consumers need to spend if we are to see economic recovery. And, given the chance, bankers will help that recovery on its way.

And Goldman Sachs is in the news again. Apparently, a recent Brand Asset Consulting survey of 17,000 Americans founds that the bank's reputation has been tarnished in the last 2 years. Well, Goldman should care less. The most important constituents for the firm are surely its stakeholders. Are shareholders happy ? (Looking at the stock price, they should be). Are clients happy ? (They keep coming back, and the firm sure ain't short of business). Are the employees happy (looks like they will be at year-end). Success always has its critics, and Goldman has more than its fair share of those.

Finally, FT Alphaville reports that Andrew Hall, the trader who heads up Citi's energy trading unit Phibro and is thought to be on track for a $100m pay pack this year, is in discussions with the firm about a 'quiet divorce'. Hall is thought to be already in talks with a rival firm about plying his trade there. And he will not be short of offers. The White House and all the other critics may not see the value Hall brings to Citi, but others clearly can. And the upshot ? Hall will still get his millions, and Citi will lose his substantial contribution to its bottom line. The US taxpayers (and Citi's other shareholders) have been screwed again. God bless America.