Goldman Sachs said on Monday, in the wake of its $1.8 billion first-quarter profit, that it was looking to have a stock offering of $5 billion in order to repay its $10 billion loan. Tuesday, a rift developed between Rep. Barney Frank (D-MA) and the Obama administration, as the former welcomed the repayment development. The administration, on the other hand, claims to want to not “stigmatize” those still on the TARP.
As a guest on “Your World with Neil Cavuto” pointed out yesterday, the more-likely reason is the Obama adminstration would rather keep control. After all, he who doles out the gold makes the rules.
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You know the report by Goldman Sachs of $1.8 billion profit in the first quarter of 2009 is fraudulent, but legal.
The GSB’z (Goldman-Sachs Boyz) redefined their fiscal year so that December 2008 is in neither Fiscal Year 2008 nor in Fiscal Year 2009.
Needless to say it is easy to post $1.8 billion in profits when you can claim all the revenue funnelled in via the AIG money Paulson/Geithner used to bailout AIG credit default swap (CDS) contracts and NOT report any of the $1.3 billion in write-downs Goldman Sachs reported in December 2008.
I posted the details of this over at Washburn’s World.