The U.S. government made a 23% return supporting Goldman Sachs during the global financial crisis, the investment bank said Wednesday as it unwound one of the last taxpayer-funded investments it received last year.
Goldman (GS) said it paid $1.1 billion to redeem warrants the U.S. government received when it invested in the firm through the Troubled Asset Relief Program, or TARP.
In June, Goldman repaid a $10 billion preferred-stock investment of $10 billion from TARP. During the eight-month term of the investment, the firm noted that it also paid $318 million in dividends on those securities.
Including the cost of redeeming the warrants, Goldman said it paid $1.418 billion to the government, which works out to an annualized return of 23% for U.S. taxpayers.
"This return is reflective of the government's assistance, which benefited the financial system, our firm and our shareholders," Goldman Chief Executive Lloyd Blankfein said in a statement. "We are grateful for the government efforts."
The $1.1 billion was the value that the Treasury Department put on the warrants, Goldman noted.
p.s. Blankfein is lying through his teeth. He never wanted in on this advanced money laundering scheme.
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