As we have noted already today, compensation per head at Goldman Sachs is up an average of 74% in the first nine months of the year. Given the phenomenal performance of its fixed income trading division, Goldman’s FICC traders will undoubtedly find their bonuses elevated even more.

Revenues in FICC were up 375% in the third quarter, and, as the chart in this Alphaville post shows, returns from interest rates, credit and commodities have been spectacular over the past nine months.

Even more impressively, Goldman lost money on only one day last quarter.

However, as Yves Smith points out, this all looks slightly suspect.

Is it possible, Smith wonders, that, ‘the Fed has created such a ridiculously favorable environment for banks and traders that if you are moderately competent, making money is like shooting fish in a barrel?’ She also highlights a Financial Times article on the same subject, which suggests Goldman has been gaming the Fed, by working around the ‘timing of Fed purchases of government debt and subsequent Treasury debt sales.’ Maybe Goldman bankers aren’t so deserving after all.

Goldman Sachs received H1N1 vaccine before several hospitals. (BusinessInsider)

Capital markets professionals and traders will be paid up this year; M&A professionals, private equity professionals and prime brokerage professionals will be paid down. (Wall Street Journal)

BarCap hiring/has hired 35 senior M&A bankers in Europe in 2009. (Bloomberg)

Hester’s bonus will be linked to ‘lending performance.’ (Guardian)

Royal Bank of Scotland boss Stephen Hester yesterday insisted staff would enjoy "a significantly improved position" in terms of bonuses compared to last year. (Independent)

Kingman says it will be many years before RBS is run in the way that it ought to be. (Bloomberg)

Thain is emerging, blinking, into the light. (CNBC)

Bear Stearns banker headed to final table of world series of poker. (BusinessInsider)