Goldman Sachs says it is not lobbying to “expunge” the warrants issued to the government when banks took TARP funds.
This morning we discussed the banking industry’s aggressively lobbying of the Treasury Department to “expunge” the warrants. This would amount to a huge giveaway to banks and a tremendous rip-off for tax-payers.
A spokesmanor Goldman says that the firm is not one of the firms looking to expunge the warrants.
“We think that taxpayers should expect a decent return on their investment and look forward to being able to provide just that when we are permitted to return the Tarp money,” Goldman spokesman Lucas Van Praag said.
This seems to imply that Goldman is planning to buy back the warrants when it is permitted to repay the TARP funds. It was not clear what price Goldman expects to pay for those warrants. The Wall Street Journal reported that some banks are lobbying to buy the warrants back for prices that would deliver very little return to taxpayers. Economist Linus Wilson tells us that the Goldman warrants should be valued at $914 million.
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