Reply #6: Goldman facing compensation, derivative inquiries

[ozymandius]

NEW YORK – Goldman Sachs Group Inc., one of the banking industry's top performers, said Wednesday that government agencies have asked about its compensation practices and use of credit derivatives.

Compensation, especially bonuses, and credit derivatives have been among the most hot-button topics in the financial services industry since the credit crisis peaked last fall.

In a filing with the Securities and Exchange Commission, Goldman said it is cooperating with the requests from undisclosed regulators. A spokesman from Goldman declined to provide further details about the inquiries.

Politicians have recently questioned the methods big banks use to determine compensation packages, especially in the wake the government's bailout last fall of the banking sector, known as the Troubled Asset Relief Program.

Last week, New York Attorney General Andrew Cuomo released details on bonuses paid in 2008 to the initial nine banks the government agreed to provide with TARP funds, including Goldman Sachs.

http://news.yahoo.com/s/ap/20090805/ap_on_bi_ge/us_goldman_sachs_4