This week the New York Times featured an article about Goldman Sachs rushing to repay the bailout money it received from TARP.
According to Llyod C Blankfein, CEO of Goldman Sachs, the firm may actually repay the funds within a month, far sooner than he originally indicated.
I'm curious as to why .... what is the real motivation?
There could be several reasons for repaying the money as soon as possible: It may be the 5% interest being charged on the borrowed funds, or it could be the perception that TARP recipients aren't financially sound. A further rationale could be that banks utilizing bailout funds don't want the government to influence how they do business (ie: they don't want limitations on compensation and bonuses or any other type of control and regulation).
A more sinister explanation may be to deflect scrutiny by Congress and Taxpayers about the true influence Goldman Sachs had in encouraging the AIG bailout.
I blogged about this while trying to "connect the dots" between Goldman Sachs and AIG. Remember that Henry Paulson - George Bush's Treasury Secretary and one of the original architects of TARP - was the former CEO of Goldman Sachs.