It’s true. Goldman Sachs’ pays more for cash than Citigroup:
Debt from the most profitable Wall Street firm yielded 2.73 percentage points more than Treasuries on average as of May 4, according to Bank of America Merrill Lynch indexes. That compares with a spread of 2.29 percentage points for Citigroup, which got a $45 billion bailout in 2008 and repaid $20 billion in December. At the end of March, Citigroup spreads were 0.45 percentage point wider than Goldman Sachs’s.
Strange? After all, one firm had to be partly nationalized during the crisis, while the other made it through smoothly. But then, the one that made it through smoothly has been vilified by lawmakers and prosecutors and the media, so now they’re the more dangerous counterparty.
Business Insider Emails & Alerts
Site highlights each day to your inbox.