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…