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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (96336)	4/10/2009 7:26:54 AM
From: elmatador	Respond to of 116555

The pullout Message 25560613

To: westpacific who wrote (96336)	4/11/2009 10:35:09 AM
From: Mark Bong	1 Recommendation Read Replies (1) \| Respond to of 116555

Goldman Seeks New Stock Sale--Top of the Bear Market Rally?? Goldman Sachs CEO Lloyd Blankfein, following a meeting with U.S. President Barack Obama in Washington, D.C., March 27, 2009. In October, the Treasury Department forced the nation's largest banks, including those that didn't need additional capital, to take government funds. Goldman received $10 billion. The view was that infusing all banks with capital would help shore up the financial sector more quickly and avoid tarring some banks as weak. But stock markets now have risen for five consecutive weeks, and shares of financial firms have helped lead the rally. Thursday, Goldman's shares rose $9.58 a share, or 8%, to $124.33 on the New York Stock Exchange, and are trading at their highest level since October. Repaying the government is favored by Goldman's employees, eager for the paydays of the past; by investors, who applauded the firm's finance chief when he made the suggestion; and its executives, who believe the government's role will make it harder for the firm to compete. Goldman has weathered the mortgage meltdown better than many rivals; it holds about $111 billion in cash and cash-equivalent securities. Goldman executives privately say the firm doesn't need new capital to pay back the loan but doing so would signal its financial health. Still, "If the deal doesn't go well...does it put you back in the doghouse in terms of creditors or investor concerns?" said Brad Hintz, who covers financial companies for Sanford C. Bernstein. Write to Susanne Craig at susanne.craig@wsj.com and Kate Kelly at kate.kelly@wsj.com online.wsj.com