Goldman Sachs Group Inc. NYSE:GS Message Board

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Non-Tech : Goldman Sachs Group Inc. NYSE:GS

GS 789.37

-0.1%

Oct 31 9:30 AM EDT

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From: Don Green	7/23/2009 12:37:49 AM
	of 411

Goldman Sachs Group Inc. has paid $1.1 billion to buy back the warrants for preferred stock that it granted to the U.S. government last year as part of the Troubled Asset Relief Program. The repayment comes as fellow bank J.P. Morgan Chase & Co. is still bickering with the government over the warrants and their value. Other banks, including U.S. Bancorp of Minneapolis and BB&T Corp. of Winston-Salem, N.C., have bought back their warrants for varying amounts. When combined with $318 million in dividends that Goldman paid on its TARP infusion, the annualized return for taxpayers was 23%, according to the company. Goldman, Wall Street's largest surviving investment bank, paid back the $10 billion it received under TARP in June. The company last week said its second-quarter profit surged amid record results in trading and stock underwriting. Several weeks ago, Goldman offered to pay $650 million to repurchase the warrants. The offer was increased to $900 million before the two sides settled on the $1.1 billion price. This month, a congressional watchdog said the Treasury Department might be selling its warrants back to the banks at prices below market value and urged greater transparency in the process. At 4 p.m. in New York Stock Exchange trading Wednesday, Goldman's shares were up 66 cents, or 0.4%, at $160.46. —Susanne Craig contributed to this article.

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