Why is Goldman Sachs rushing to repay the bailout money it received?
By COMPASS PALM SPRINGS | Stewart Penn, COMPASS Palm Springs - Broker Associate
(COMPASS)
This week the New York Times featured an article about Goldman Sachs rushing to repay the bailout money it received from TARP. According to Llyod C Blankfein, CEO of Goldman Sachs, the firm may actually repay the funds within a month, far sooner than he originally indicated. I'm curious as to why .... what is the real motivation? There could be several reasons for repaying the money as soon as possible: It may be the 5% interest being charged on the borrowed funds, or it could be the perception that TARP recipients aren't financially sound. A further rationale could be that banks utilizing bailout funds don't want the government to influence how they do business (ie: they don't want limitations on compensation and bonuses or any other type of control and regulation). A more sinister exp...
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