PARTNERS in Goldman Sachs, who include Mr Peter Sutherland, are in line for sharply increased cash bonuses following another surge in pre tax earnings in the first quarter of the bank's financial year.

Senior partner and chairman, Mr Jon Corziae, reported that earnings for the quarter ending February 29th soared to $565 million (£365 million), a threefold increase on earnings of the same quarter a year ago.

The stellar performance provides further evidence of the turnaround in the fortunes of Goldman Sachs, the last big private partnership on Wall Street. The bank took a beating in 1994 due to climbing interest rates and a depressed bond market.

It was the fifth consecutive quarter to show improving earnings and the firm's fourth most profitable quarter ever. The partners are taxed on their individual shares in the profits.