Goldman Sachs Would Make $1 Billion from CIT Failure; U.S. Taxpayer Would Pay $2.3 Billion

October 5th, 2009

Via: Financial Times:

Goldman Sachs stands to receive a payment of $1bn – while US taxpayers would lose $2.3bn – if embattled commercial lender CIT files for Chapter 11 bankruptcy protection, people familiar with the matter said.

The payment stems from the structure of a $3bn rescue finance package that Goldman extended to CIT on June 6 2008, about five months before the Treasury bought $2.3bn in CIT preferred shares to prop it up at the height of the crisis. The potential loss for taxpayers would be the biggest to crystalise so far from the government’s capital injection plan for banks.

Posted in Economy, Elite | Top Of Page

One Response to “Goldman Sachs Would Make $1 Billion from CIT Failure; U.S. Taxpayer Would Pay $2.3 Billion”

  1. Eileen says:
    October 5, 2009 at 4:38 am

    The dates one this whole deal makes me wonder whether I was really out in alternative universe when I cashed Mom $$ out of the stock market. Reading here on Cryptogon I read the signs, and they weren’t exactly in hieroglyphics.
    I’m angry that I doubted myself and didn’t do more sooner to get more out of Dodge.
    When the mind of the U.S. populace grasps something of this complexity, it is too late. It’s already a done deal. A year (well – I think it will a be month from now when everyday peoples get this?
    Hoo boy. This is not going to go down well with the world sheep-poluce. How could it.
    Guess I’ll be out trawling for coin tomorrow – if you can understand.

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