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Wednesday, October 7, 2009

Goldman Sachs AGAIN!!

Now you have to follow the bouncing finger here. First, CIT is a huge financial company that specializes in lending to SMEs, and CIT is in deep financial dodo, tottering on bankruptcy actually. In June, 2008, CIT negotiated a $3 Billion financing deal with Goldman Sachs to keep CIT going.

Without disclosing it, the U.S. Treasury bought $2.3 Billion in CIT preferred stock using TARP money last fall.

If CIT goes into the tank, which is extremely likely, Goldman Sachs will get a $1 Billion payout, plus their original investment. Since the preferred stock which you own will be worthless, your money will be transferred directly to Goldman Sachs, once again!!

However, if you owned Goldman Sachs stock, you can smile all the way to the bank.

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