Goldman Sachs Pays $1.1 Billion to Redeem TARP WarrantsAs I do not have the parameters I can not do a real calculation but by any means that deal stinks again!
1.Buffett bought 5 bil worth of preferred shares with a warrant of Goldman at a far higher stock price and I assume strike price.
2. The Treasury gave double the amount for TARP into a preferred with warrants deal at a far lower stock / strike price.
Recently the media reported that Buffett made a few billions on that deal and The Treasury gets 1.1 bil - that does not make any sense. Again Goldman gets multi billion present from taxpayers!!!
That has to be reversed and this Goldman puppet Geithner needs to be fired - that guy stinks.
and its outrageous how it is sold to the public - Mr President those deals eat away your credibility.
US Taxpayers Make 23 Percent Return
NEW YORK--(BUSINESS WIRE)--July 22, 2009--
The Goldman Sachs Group, Inc. (NYSE: GS) announced today that it has redeemed the warrants the U.S. government received in connection with its investment in the firm through the TARP's Capital Purchase Program at $1.1 billion, the full value the U.S. Treasury Department has determined.
While there are a number of ways to value the warrants, including through a public auction, we believe that in the context of the extraordinary actions taken by the government to help stabilize the financial system, this valuation of the warrants represents full and fair value.
In June, Goldman Sachs repaid the U.S. Treasury's investment of $10 billion, and during the eight months of the investment, the firm paid $318 million in preferred dividends. We are pleased that the payment of the dividends and the redemption of the warrants, which total $1.418 billion, represent an annualized return of 23 percent for US taxpayers.
"This return is reflective of the government's assistance, which benefitted the financial system, our firm and our shareholders," said Lloyd C. Blankfein, Chairman and CEO. "We are grateful for the government efforts and are pleased that this additional money can be used by the government to revitalize the economy, a priority in which we all have a common stake."
He added, "Because Goldman Sachs advises companies with their growth plans and raises capital to support that growth, the best and most sustainable operating environment for us is one where consumer and business confidence and economic growth flourish. We are committed to allocating capital and providing liquidity to our clients to help stimulate growth and job creation."
The Goldman Sachs Group, Inc. is a leading global financial services firm providing investment banking, securities and investment management services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.