Now here is an interesting story:
Goldman Sachs Group Inc., by selling stock to help it repay $10 billion to the U.S. Treasury, may pressure competitors to follow suit or appear dependent on government support, analysts said.
The company, scheduled to report earnings April 14, is considering announcing the share sale as early as next week, the Wall Street Journal reported yesterday, citing unidentified people familiar with the matter. Lucas van Praag, a spokesman for New York-based Goldman Sachs, declined to comment.
Now while the report states Goldman Sachs owes $10 Billion, the reality is, through AIG, Goldman Sachs received $12.9 billion.
I'd say that's a very nice free profit by getting 100% payouts via AIG.
No wonder they do not want any government scrutiny on their company.
check this out Goldman Sachs $1.8 billion dollar "profit"
Goldman Sachs Profit.
ok, so we have $12.9 billion they received recently through AIG, plus $10 billion from the government of which they want to pay it back, which leads $2.9 billion in AIG funneled money and they report a $1.8 billion dollar profit.
So does this really mean a $1.1 billion dollar loss?
Actually Goldman Sachs avoids $23.3 billiion loss
In the fourth quarter of 2008 GS reported a $2.2 billion loss. Couple that with its first quarter earnings of $1.8 billion you end up with a loss of $0.4 billion over two quarters. During that same time they received $12.9 billion from the taxpayer, laundered through AIG and an additional $10 billion from the taxpayer through the US Treasury TARP program. So a $23.3 billion hole in the GS balance sheet was largely repaired, courtesy of the US taxpayer. GS shareholders are greatly enriched. And what do we get from that? A bill somewhere considerably North of $22.9 billion once we finish paying the interest on the gift. That should elicit screams of rage, but the ostriched citizenry of this country is paying too much attention to the last episode of "Lost" to notice what is happening to their wealth.