It's Been a Good Day at Goldman
And you thought Wall Street was struggling. Goldman Sachs announced a first-quarter profit of $1.66 billion today, a 13 percent bump from what the bank earned during the quarter of 2007. Goldman also announced plans to raise $5 billion via a stock offering so it can pay back Washington the $10 billion it's received in bailout funds thus far. But don't mistake this for a grand civic gesture on the part of Goldman chief Lloyd Blankfein.
Paying back the money it received from U.S. taxpayers might just allow Goldman to return the good old days when eight-figure bonuses were the norm, no one asked questions about retreats to five-star hotels or purchases of Gulfstream jets, meetings were not accompanied by tepid glasses of water, and regulators spent their days assembling giant rubber band balls, not hassling banks. Goldman didn't indicate whether the surprisingly strong earnings might lead the bank to retire some of the 4,000 people it has dismissed in recent months. Naturally, that news should come along any minute now.
Goldman to Raise $5 Billion to Pay Back TARP and Posts Profit [NYT]
Goldman Sachs Reports Profit, Plans $5 Billion Stock Offering [WSJ]