Under pressure during the financial crisis, Goldman Sachs Group Inc. converted from an investment bank to a bank holding company in September 2008.[1] Less than a year later, Goldman Sachs freed itself from government oversight of its executive compensation by repaying $10 billion to the Troubled Asset Relief Program (TARP).[2]

In addition to the TARP funds, Goldman Sachs also benefited from the government bailout of American International Group (AIG). The Federal Reserve agreed to pay $22.1 billion in insurance contracts that Goldman Sachs had purchased from AIG to protect against price drops of mortgage securities.[3]

In response to concerns by shareholders and the public, Goldman Sachs announced that senior executives would forgo cash bonuses for 2009 and, instead, receive stock that must be held for at least five years.[4] The company gave out the 2009 stock awards in early February 2010. CEO Lloyd Blankfein received stock valued at $9 million. Overall, Goldman Sachs paid more than $16 billion in 2009 compensation and benefits, the equivalent of $500,000 per employee.[5]

Top executives at Goldman Sachs also receive other benefits in addition to compensation. Blankfein and other Goldman Sachs executives also participate in private investment funds that the firm manages for its clients in merchant banking, venture capital and other activities. In 2009, Blankfein received $18.7 million in distributions from these funds.[6]

Goldman Sachs spent $2,830,000 on lobbying efforts in 2009 on many issues, including derivatives regulation, systemic risk, regulatory reform, executive compensation, TARP and legislation to broaden consumer financial protections.[7] The bank employs 29 lobbyists, one of the largest teams among financial companies.[8]

Goldman Sachs is a member of the Securities Industry and Financial Markets Association, a group that has opposed taxation of securities transactions.[9] Blankfein is the vice chairman of the Financial Services Forum, a group that has opposed limiting the size of financial institutions.[10] He is also a member of the Business Roundtable that has opposed including corporate governance reform as part of any financial regulation legislation.[11]