Bank has £10bn for pay and bonuses

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The group, which employs around 5,500 staff in London, revealed a 46% hike in the compensation and benefits pool for the first nine months of the year.

The bumper rewards news comes after Goldman made net earnings of 3.19 billion US dollars (£1.96 billion) between July and September, up from 845 million dollars (£519.8 million) in the third quarter of last year.

Goldman earmarked 5.35 billion dollars (£3.29 billion) in pay and benefits - including redundancy costs - for the third quarter alone after reaping profits from a resurgent investment banking sector.

Fellow US group JP Morgan Chase kicked off the third quarter reporting season on Wednesday with a bigger-than-expected surge in profits to 3.6 billion US dollars (£2.3 billion) as banks return to health less than a year after the financial crisis.

The bonus news from Goldman is likely to fuel concern over a return to the sector's pre-meltdown culture of excessive rewards, having tipped the world into global recession and resulting in billions of pounds in taxpayer bail-outs.

The Treasury announced on Wednesday that the bank was one of a number with UK operations to agree to tougher international rules on pay and bonuses.

Officials said 11 banks including Bank of America and JP Morgan had signed up to the G20 recommendations drawn up last month. These include so-called clawback clauses and to spread out bonuses over three years or more.

Banks are being boosted by a bounce-back to stellar returns in their investment banking divisions, amid resurgent market conditions and the demise of certain competitors. Goldman said fixed income, commodities and currency trading buoyed its profits for the second quarter running.

It stunned the market in the summer with news of a 65% leap in second quarter profits, to 3.44 billion dollars (£2.12 billion). The group, which employs 31,000 staff globally, has been seen as one of the strongest banks throughout the financial crisis. It had less exposure to toxic mortgage-backed securities than other companies and has been more aggressive in its trading.