<p>Paul is a bit off on his analysis though. First of all, Goldman Sachs had very few write downs from the subprime crisis, so their health has little to do with mark to market. Secondly, their average compensation/employee in 2006 was $622,000; so 2/3 is way off . Finally, with regards to hiring–investment banks are still hiring from my school and barring another economic downturn, the numbers are going to get better. </p>
<p>As a side note, JP Morgan also said they are ready to return Tarp funds after posting better than expected Q1 results.</p>
<p>With regards to paul’s mark to market vs mark to ‘make believe’ comment, I can assure you that the current valuations are more accurate than marking assets to a non-existent market</p>