Tuesday, March 24, 2009


Goldman Sachs eyes repaying TARP in month: report

March 24, 2009 9:18 AM ET
NEW YORK (Reuters) - Goldman Sachs Group Inc hopes to pay back the $10 billion it took from the U.S. government's $700 billion Troubled Asset Relief Program within a month, The New York Times said on Tuesday, citing people involved in the process.

The urgency to repay the money follows last week's uproar over bonuses paid to executives at the insurer American International Group Inc , and revelations that Goldman was the largest recipient of government money stemming from its role as an AIG counterparty, the newspaper said.

Goldman Sachs spokesman Ed Canaday declined to comment.

A growing number of TARP recipients have said they plan to repay their money or do so as fast as possible.

Some have complained that investors perceive TARP recipients as not being strong enough to operate on their own. YA THINK?

Others have complained about the government's unilateral ability to impose new restrictions on TARP recipients, including limitations on bonuses that could prompt thousands of employees to leave. REALLY?

Repaying TARP money would also spare recipients of making dividend payouts to taxpayers. For Goldman and most other recipients, the annual payout is 5 percent.

I fully expect the Feds to block this and any early payment. Watch.

1 comment:

Quite Rightly said...

Watching and waiting . . .