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Goldman Sachs Might Get Huge Payment if CIT Goes Bankrupt

Posted by libhom Tuesday, October 06, 2009

Goldman Sachs, the banksters who have their grubby hands on both the Democrats and Republicans, are in a position to do much better than the taxpayers if commercial lending bank CIT goes bankrupt. The GS banksters may end up getting $1 billion while we get screwed over.

From Financial Times 10/4/09 (Hat tip to Citizens for Legitimate Government)

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.

The agreement with Goldman states that if CIT defaults or goes bankrupt, it “would be required to pay a make-whole amount” that totals $1bn, the people familiar with the matter said.

This represents yet another de facto subsidy for GS from us taxpayers, even though they are profitable. Let's hope somebody in the Obama Administration has enough integrity to block this.

There is some small reason for hope, though people better make a lot of noise about this.
While Goldman is entitled to demand the full amount, it is likely to agree to postpone payment on a part of that sum, these people added. A CIT filing last week said that it was in negotiations with Goldman “concerning an amendment to this facility”

Our tax dollars saved GS. They shouldn't be getting a dime. Crap like this makes me think we should nationalize the big banks and seize their assets. Considering how much money we have given them, those assets are really ours anyway.

 

1 Responses to Goldman Sachs Might Get Huge Payment if CIT Goes Bankrupt

  1. Lew Scannon Says:
  2. Goldman Sachs: Doing their part to help the unemployment situation by keeping bankruptcy lawyers working.........

     

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