Friday, April 17, 2009

They have to act fast

Goldman Sachs has made a big deal about their willingness - nay, eagerness - to pay back the $10 billion they got from the TARP. That's $10 billion they got directly; they got another $10 billion or more from the TARP's payout to AIG and hold $28 billion of bonds backed by the FDIC. Nothing has been said about returning these latter funds. Nor have they said that they would refuse to be saved by us once more should they have a reversal of fortune.

It looks like Goldman is pushing this now because they have a fear of new regulations which may further impact their ability to pay outrageous sums to their honchos. They've already started to stock the bonus pool. In the first quarter half of their revenues went into the pool. But why they fear that Geithner might do the right thing is beyond me as he has shown little inclination to join the new world; he prefers to try to rebuild the old.

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