Goldman Sachs Turns Profit, Plans To Give Back TARP Funds.

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Between Wells Fargo and this news, doesn’t anybody think that this may put a slight damper on those Tea Parties on Wednesday?

From MarketWatch:

Goldman Sachs Group Inc. said Monday it swung to a profit in the first-quarter compared to the prior period, and announced it has commenced a public offering of $5 billion of its common stock.

Goldman Sachs said net earnings for the period ended in March were $1.8 billion, or $3.39 a share, compared to $1.5 billion, […] Analysts had been anticipating earnings of $1.64 a share, according to Thomson Reuters data. […]

Goldman Sachs said in a statement that it intends to use proceeds of the $5 billion offering to help redeem “all of the TARP capital.”

And yes, I think it’s definitely too soon to tell if these institutions are pulling out of the insolvency mess, but I can’t help but think if we’re seeing these kinds of numbers, it’s a relatively good sign that the worst could be behind us.

However, we still have yet to see the fallout from the next batch of toxic assets, but now that we have a system currently in place to deal with the subprime mess, maybe that’ll address any additional problems we face?

More as it develops…

  • gerryf

    Profit has nothing to do with solvency–Wells Fargo and Goldman Sachs still have billions of dollars in assets on their books that they are valuing at X and the rest of the world wouldn’t buy with your checkbook–well, actually, that’s not true–the rest of the world will be buying them with your (read taxpayer) checkbook, propped up by the moronic Geitner plan.

    The “great news” of profits is merely masking the underlying weakness in the financial system that requires increased regulation and more conservative investing practices.