The Guardian reports that at Goldman Sachs "staff can look forward to the biggest bonus payouts in the firm's 140-year history after a spectacular first half of the year, sparking concern that the big investment banks which survived the credit crunch will derail financial regulation reforms." Goldman's spokesman Lucas van Praag promptly dismissed the report in an email to TheStreet.com.

It's not really the size of the bonuses that are worrisome at this point. The banks is TARP free after all, and the public anger of big bonuses has waned after the AIG fiasco. We've also got a new pay czar in place, and he will hold powerful sway (in theory) over Goldman Sachs compensation for top executives. I think the policies agreed upon may filter lower. We'll see new payout models. That's for sure. It will be very interesting to see if Goldman Sachs can really continue its winning ways in the second quarter after a strong first quarter. 

For more:
- here's the article from The Guardian
- here's the article from TheStreet.com

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