2009-05-07

Geithner’s Promise - Floyd Norris Blog - NYTimes.com

Geithner’s Promise - Floyd Norris Blog - NYTimes.com:

"Goldman Sachs, when it said it wanted to repay the $10 billion TARP investment it received from the government, said it had no intention of retiring the $28 billion in debt it had issued with F.D.I.C. guarantees. Indeed, it wanted to issue more such debt."
Emphasis added.

The banks can borrow money dirt-cheap because of FDIC guarantees; that's yet another form of government support. Goldman Sachs is intimating that it needs those guarantees to stay in business.
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