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To: Spekulatius who wrote (37993)5/23/2010 1:22:53 AM
From: Madharry  Read Replies (1) | Respond to of 78462
 
its true they say that because of of interest rate swaps a lot of GS borrowing is in the 1-2% range this is not related to the fdic or govt gteed debt. The fact is that I am not borrowing at 5%. the interactive broker margin rate is something like 1.23% im told so why bandy around a 5% borrowing cost number? Also they have other businesses besides trading that figure to do better assuming the ecnonomy improves such as private equity, managing assets and investment banking. The trading business does not normally generate 80% of their profits . I appreciate your comments.



To: Spekulatius who wrote (37993)5/23/2010 1:22:54 AM
From: Madharry  Respond to of 78462
 
its true they say that because of of interest rate swaps a lot of GS borrowing is in the 1-2% range this is not related to the fdic or govt gteed debt. The fact is that I am not borrowing at 5%. the interactive broker margin rate is something like 1.23% im told so why bandy around a 5% borrowing cost number? Also they have other businesses besides trading that figure to do better assuming the ecnonomy improves such as private equity, managing assets and investment banking. The trading business does not normally generate 80% of their profits . I appreciate your comments.