Tuesday, April 14, 2009

Today's Fly Or Die Commerce Report

After receiving $10 billion in bailout money, Goldman has posted a hefty profit for this quarter. According to CNN, the financial company is seeking to use some its $1.81 billion profit to payback some of the taxpayers' money that they received via bailout funds. However, the treasury department and the federal reserve must grant them permission to do so.

Goldman has reported that their profit boost came from fixed income revenue- such as "interest rate products, commodities, and credit products." This revenue was great enough to offset the company's $1.41 billion lost last quarter in real estate investments, and an investment in a Chinese bank.

CNN states that Goldman also has announced "plans to raise $5 billion through a sale of stock, saying it wants to become the first big bank to repay the federal loans extended during last fall's financial sector meltdown." Whether the government will allow this quick payback is the question. The parameters of the loan payback is unclear [SIDEBAR: At least to me it is.] This leads me to ask why the government would want a company indebted to them rather than taking some supposedly much needed cash? We should see how this scenario will play out over the next couple of weeks.

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