Goldman Sachs Buys Back Warrants for $1.1 Billion

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So Goldman Sachs bought back the stock-purchase warrants it gave the government as part of the TARP deal last fall. The $1.1 billion, plus the $318 million in dividends the firm paid to the federal government earlier this year, means that, overall, taxpayers made a 23 percent return on their investment in Goldman, the company pointed out in a press release. Party! On the face of it, it's a decent deal: If we are getting this right, $1.1 billion is more than double what the shares are worth now (around $450 million, based on this morning's share price of $160). But then again, it's far less than what they would be worth if the government held onto them longer. So while Goldman is making nice to the taxpayer, they're not exactly being obsequious.

Well, not with their wallets, anyway:

"This return is reflective of the government's assistance, which benefited 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."


Anyway. Frankly, from a completely detached standpoint, good for Goldman. Why should they allow the American people to continue to rake in returns on their investment with one hand while repeatedly slapping them in the face with the other?

Goldman Sachs Pays $1.1 Billion for Treasury Warrants [Bloomberg]