More from Goldman Sachs (GS): The firm says that with the $318M in dividends it paid on its $10B...


More from Goldman Sachs (GS): The firm says that with the $318M in dividends it paid on its $10B TARP investment (and the $1.1B it paid to redeem warrants), U.S. taxpayers have gotten a return of 23%.
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Comments (7)
  • doubleguns
    , contributor
    Comments (9700) | Send Message
     
    And GS return was? Try astronomical, criminal, insane etc.....
    22 Jul 2009, 01:33 PM Reply Like
  • TruthSayer
    , contributor
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    As a US taxpayer I am glad we got a 23% return, but what could of it been if we held the warrant or sold it in a public auction.
    22 Jul 2009, 01:41 PM Reply Like
  • Joseph Wagda
    , contributor
    Comments (57) | Send Message
     
    What is our ROI on the $13B we "lent" to AIG to make Goldman's CDS whole at 100 cents on the dollar (or for that matter the $6(odd)billion Goldman received from AIG imediately prior to our national "investment" in AIG)?

     

    What is Berkshire's ROI on its preferred stock w/warrant investment in Goldman made conconcurrently with the TARP?

     

    23% IRR is a poor return for a distress investment resulting in a successful recapitalization. What was the return of GS' common stock over the same period?
    22 Jul 2009, 01:51 PM Reply Like
  • James Quinn
    , contributor
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    How about the $13 billion of our tax dollars Paulson funneled to them through AIG?
    22 Jul 2009, 02:17 PM Reply Like
  • Illusional Delusion
    , contributor
    Comments (346) | Send Message
     
    Well, if I remember correctly, the amount they got from the CDS was like 10b, so the return is 10+% only. For completely backstopping them, anything <30% is cheap.
    22 Jul 2009, 02:27 PM Reply Like
  • Whippet
    , contributor
    Comments (496) | Send Message
     
    I missed something- did AIG give their money back??? More like $20 billion in, 10.3 billion out = ~50% unrealized loss.

     

    On Jul 22 02:27 PM Illusional Delusion wrote:

     

    > Well, if I remember correctly, the amount they got from the CDS was
    > like 10b, so the return is 10+% only. For completely backstopping
    > them, anything <30% is cheap.
    22 Jul 2009, 02:59 PM Reply Like
  • one eye
    , contributor
    Comments (645) | Send Message
     
    AIG has operations internationally, GS backstops them. This was money owed by AIG, had they not repaid it, more than a few of their companies would have failed.

     

    When AIG was before Congress, the size of their worlwide operation was revealed. At the time of the initial Crisis, AIG's debt was $1.8 Trillion. By that meeting it had been reduced to $1.4 Trillion.

     

    Let AIG default on their debts? Better to saw off a leg.
    27 Jul 2009, 01:59 AM Reply Like
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