by Frank James
It's hard for Wall Street's masters of the universe to take orders from Washington policymakers since you're not really a master of the universe if someone else can tell you what to do, especially if some politician can dictate the size of your bonus.
So Goldman Sachs evidently aims to repay the TARP bailout money it received, according to the Wall Street Journal. Doing that, coincidentally, would let Goldman pay its executives whatever it wants.
An excerpt:
NEW YORK -- Goldman Sachs is pondering ways to pay back the government, but it might take some time, CFO David Viniar said at the Credit Suisse financial services conference Wednesday.
Goldman Sachs, along with fellow surviving investment bank Morgan Stanley, received $10 billion from the government last year...
... "I am sure the Treasury wants us to pay it back at some point, and we want to as well," Mr. Viniar said. Goldman Sachs would like to get out from under the restrictions of the capital structure, which include some minor executive compensation restrictions, he said, adding, "it will send a good signal to pay it back."
Comments
Bet you'll also find Paulson and Kash & Karry are in favor of this because it will inflate the value of their Goldman stock (which is of course held in a "blind trust" ha ha).
Posted by: ornery | February 4, 2009 4:35 PM
Don't let the door hit you in the arse on the way out, Goldman Sachs!
Posted by: Hey Joe | February 4, 2009 4:43 PM
Makes one wonder if they ever really needed it in the first place. Makes one think maybe more bailouts should not be done. Makes one think that maybe some "creative accounting" was going on.
Posted by: lochnessmonster | February 4, 2009 5:02 PM
It will take a long time? Long enough, I hope to pay back the 41% my 401K lost in 08.
Posted by: C.Morris✈ | February 4, 2009 7:05 PM
Nessie,
Wall Street has wanted our Social Security $$ for a long time. Maybe they figured out a way to get it on the down low?
'Congress? We don't need no stinking congress!!'
Posted by: C.Morris✈ | February 4, 2009 7:08 PM
I want TEN PERCENT INTEREST FROM GOLDMAN SACHS ON THE LOAN!!!!!
I will fight to the DEATH to get Obama re-elected. What a GUY!
I also hope they make the corporate piggies fly coac h!!!!
Posted by: A seat right by the bathrooms will serve them well | February 4, 2009 7:13 PM
Hey, if Obama can change the terms of the deal ex-post-facto, then so can Goldman Sachs. In the end the only voters Obama will have left will be the deadenders like Mr. Piggy up there. Goldman employs a lot of people.
Posted by: Jeff | February 5, 2009 12:22 AM
We will probably see more big companies like this paying the TARP money back. All of the sudden these executives will find maybe they have more money than they thought. It sounds like few banks are putting this cash in circulation anyway and are just sitting on it. A smart move on the President's part in my opinion.
Posted by: Noah Bell | February 5, 2009 11:11 AM
If Goldman Sachs has already used TARP money--in any amount--they need to pay it all back before getting out. Must be hard to live on half a million per year. The banks are just the bank CEO's personal ATMs.
Posted by: Vivian | February 5, 2009 1:55 PM
Where is the outrage that Goldman Sachs paid out the following less than one year before accepting government money to FIVE PEOPLE?
Lloyd C. Blankfein
Chairman and CEO
$70.3 million
Gary D. Cohn
President and Chief Operating Officer
$72.5 million
Jon Winkelried
President and Chief Operating Officer
$71.5 million
David A. Viniar
Chief Financial Officer
$58.5 million
Edward C. Forst
Chief Administrative Officer $49.1 million
yes, that's a total of $322,000,000,000.00 THREE HUNDRED AND TWENTY TWO MILLION DOLLARS TO FIVE PEOPLE FOR ONE YEAR'S WORK!
http://money.cnn.com/news/specials/storysupplement/ceopay/index.html
Posted by: AN | February 5, 2009 5:20 PM