Bloomberg.com reports that this action could put preasure on rivals of Goldman Sachs to follow suit. Companies that remain dependant on government funding will be restrained by the government's inolvment in the company's business practices. Thus, they would be at a competitive disadvantage.
There are those that question wheather Goldman Sachs will be allowed to give the money back. Reportedly smaller banks have been denied the ability to return money given to them from TARP. The government (i.e. Treasury or the Office of the President) have offered that the claim is out right false or that they want to ensure that the banks are truely stable before repayment should be accepted.
It seems like the stage is set for a dramatic Tax Week! Stress tests on the banks are also set to begin, and the government is asking that details of those stress tests are not to be released. The cries for transparency are already ringing in my ears.
Have a great weekend everyone!!
Matt Kemper
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