Goldman May Raise Money To Pay Back TARP

The WSJ is reporting that Goldman is close to a decision to pursue a multibillion-dollar stock offering. The purpose, of course, is to pay back the TARP funds.

Goldman is supposed to release an earnings report early next week. It is expected to be solid. The firm has chafed under the publicity and constraints of TARP from the outset. 

It’s going to be interesting to watch this develop. If Goldman does go down this course and say someone else like Wells follows suit then you start to get a bifurcated financial services business. That might very well put more pressure on the weak sisters. I’m not sure that Washington will stand for that but how do you tell the taxpayers that you won’t let someone pay back their money when that party is offering to do so?

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