Monday, April 13, 2009

Goldman Sach - Golden once again!

The Washington Post is reporting that Goldman Sachs has had a highly profitable quarter:

"...Goldman said its profits were $1.8 billion, or $3.39 a share, compared to $1.5 billion, or $3.23 a share in the same period a year earlier. That was more than double the $1.6o a share, analysts had been expecting on average."

The company is now promising to return the TARP funds they were given when Hank Paulson, one of their own, was the Treasury Secretary.

Some experts, however, are not happy to hear that profitable financial institutions want to pay back the money. Seems it will expand that separation between healthy and diseased banks we've been so worried about. Diseased banks will remain diseased - and like lepers of old, they will be shunned and isolated, causing them to eventually collapse.

So the theory goes.

I wonder just how long these experts think the US government should keep diseased firms on life support.

I think Goldman should pay back the TARP loan with interest. But I wonder - will Goldman Sachs pay back the backdoor TARP payouts they got from AIG?

All in all, there's no doubt that the crash of the US economy has been good to Goldman.

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