Goldman jolts traders with bonus-cut warning

Tough decisions: People watch Solomon on a screen at a conference in Riyadh. Solomon is trying to protect the firm’s profitability after a costlier-than-expected foray into consumer banking exacerbated the impact of a global slowdown in other business lines. — Bloomberg

NEW YORK: Goldman Sachs Group Inc’s traders, on the way to posting their biggest revenue haul in more than a decade, are in for a surprise as cost pressures force the firm’s leadership to cut their year-end bonuses.

Executives in the firm’s global markets division were warned this week that its compensation pool will be slashed by a low double-digit percentage, according to people with knowledge of the discussions.