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Goldman, what about the FDIC-backed debt
Goldman Sachs is trumpeting the fact it just paid the federal government $1.1 billion to buyback the warrants it gave the Treasury Dept. as part of last fall’s baillout package. But Goldman still is benefiting from the government’s largess by sitting on some $22 billion in FDIC-guaranteed debt it sold this past winter.
Goldman can’t say it’s truly free of government assistance until it retires this $22 billion in long-term debt that it sold to investors. Last week I argued that Goldman, instead of setting aside money for record bonuses, should use some of that cash to retire these FDIC-backed notes early.
Until Goldman does that, it’s still fair to say Goldman is trading with the implicit backing of the federal government.
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