Saturday, December 18, 2010

Goldman Prospers with A Little Help from a Friend

This article describes the previously undisclosed help that Goldman Sachs got from its best friend, the Federal Reserve. Goldman paid back its TARP loans from government so that it could pay out bonuses that would be restricted under TARP. It turns out that Goldman paid back TARP by selling an equal amount of its toxic assets to the Fed. We also learned that the Fed has purchased as much as $100 billion of Goldman's assets that private investors are not willing to purchase at face value.

No comments:

Post a Comment