Goldman Sachs today reported Q1 earnings that were higher-than-expected. The earnings report showed a net of $1.81 billion. Because of this, GS is planning a public offering of common shares that would yield an estimated $5 billion in cash inflows. Their plan is to repay the government that lent them billions of dollars and slip out of their grip. What a victory!
Maybe I was wrong. Perhaps the government will be the entity hailed as the conquering hero. Because of the Fed's tough stipulations imposed on firms receiving TARP money, maybe other firms will follow GS's lead by working more efficiently to post net profits, repay the government, and free themselves from bondage. Only after that will things be business as usual, and business as it should be.
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I read a story about this on Bloomberg. The best line in the piece was that the only toxic asset on the GS balance sheet is the governments money. Here is hoping that tiny Tim will let them return the money.
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