Back in October, the Treasury purchased $10 Billion in Warrants from Goldman Sachs as part of TARP. Yesterday, Lloyd Blankfein made the claim that in repaying that $10 Billion amount with $11.418 Billion, it works out to a 23% annualized return for U.S. taxpayers. Per Marketwatch:
"This return is reflective of the government's assistance, which benefited the financial system, our firm and our shareholders," Goldman Chief Executive Lloyd Blankfein said in a statement. "We are grateful for the government efforts."
FDIC guarantees helped the company secure financing at a cheaper rate since Goldman was essentially using the government’s credit card. This helped boost the company’s earnings for the three quarters it used the program. And Goldman didn’t dabble. It was the sixth biggest participant in the program by volume, according to Dealogic.