Taxpayers Make 23% On Goldman TARP Repayment
So yeah…what was all that talk about never seeing any of the TARP money again?
And this is after 10 banks said last month they’d be paying back $68B worth of TARP money. Goldman was one of them. And the American taxpayer turned a tidy profit on the deal.
Goldman Sachs Group Inc.â€™s repayments to the government of last yearâ€™s bailout money, including an agreement today to repay warrants, generated a 23 percent annualized return for U.S. taxpayers.
Goldman Sachs agreed to the Treasuryâ€™s request for $1.1 billion to repay warrants the government received when it invested $10 billion in the New York-based firm last October. The payment is in addition to $318 million in preferred dividends.
That 23 percent return compares with the 42 percent surge in Goldman Sachsâ€™s share price since October, and the 5.1 percent gain in the Standard & Poorâ€™s 500 Index. Goldmanâ€™s decision follows criticism of the bank by lawmakers who questioned its decision to set aside a record $11.4 billion to pay employees in the first half of the year.
More as it develops…