Goldman Sachs considering selling stock to repay TARP

Goldman Sachs (GS) reported today that they are considering making a multibillion dollar share offering to investors as a solution to paying off the $10 billion government loan. The announcement could come as early as next week and though Goldman executives haven’t determined the size of the offering, it is expected to be at least several billion dollars. Goldman Sachs, which is due to report its quarterly earnings on Tuesday, is one of several recipients of the U.S. government’s Troubled Asset Relief Program investment and plans to repay the money as soon as possible. The Obama Administration however is resistant towards the idea making an ultimatum that the money will not be accepted. This ideological system Obama is employing makes no sense, why would he not want to not only receive back taxpayer money but also help prove that the banking industry is stabilizing? In my opinion, I believe the government is scared to accept the TARP money as it will be a clear indicator of which banks are successful and which ones will continue to struggle. To add to this news reports of Wells Fargo strong earnings shows that some banks are coming around and ready to be self-sufficient and no longer need government officials patrolling the trading floors. Goldman Sachs has proved its value as it has almost doubled its share value in 2009. As for earnings next week I expect Goldman to follow in a similar path as Wells Fargo and report stronger than expected 2009 earnings, especially among the Prop. trading desks.

GM Hand forced to Bankruptcy

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5. England’s Banks to Receive Another Bailout