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New US House Report Critical Of Banks' Use of TARP Funds
March 08, 2009: 11:18 PM ET
WASHINGTON -(Dow Jones)- A new report by a U.S. House subcommittee is sharply critical of "a number of very large, questionable transactions" made by major banks after receiving billions of dollars of government rescue funds, including overseas investments by Citigroup Inc. (C) and JPMorgan Chase & Co. (JPM).
The report by the House Oversight and Government Reform's domestic policy subcommittee said the transactions cited are not illegal, but that "members of Congress might not consider them the kind of transactions they believed TARP would subsidize" when they voted for the $700 billion Troubled Asset Relief Program. The report, an excerpt of which was obtained by Dow Jones Newswires, is scheduled to be released on Monday.
Among the transactions cited in the document, which was prepared by the panel's Democratic staff, are Goldman Sachs Group Inc.'s (GS) mid-December repurchase of $2 billion of its own stock. The report notes that shares of the firm climbed nearly 20% in the three days following the repurchase, an increase that "would have constituted a significant benefit to top executives at Goldman Sachs."
Also singled out was Citigroup's $8 billion loan to various Dubai public sector entities, also in mid-December. JPMorgan was similarly cited for its $1 billion investment in its cash management and financial services business in India in the beginning of November.
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http://money.cnn.com/news/newsfeeds/...6_FORTUNE5.htm
March 08, 2009: 11:18 PM ET
WASHINGTON -(Dow Jones)- A new report by a U.S. House subcommittee is sharply critical of "a number of very large, questionable transactions" made by major banks after receiving billions of dollars of government rescue funds, including overseas investments by Citigroup Inc. (C) and JPMorgan Chase & Co. (JPM).
The report by the House Oversight and Government Reform's domestic policy subcommittee said the transactions cited are not illegal, but that "members of Congress might not consider them the kind of transactions they believed TARP would subsidize" when they voted for the $700 billion Troubled Asset Relief Program. The report, an excerpt of which was obtained by Dow Jones Newswires, is scheduled to be released on Monday.
Among the transactions cited in the document, which was prepared by the panel's Democratic staff, are Goldman Sachs Group Inc.'s (GS) mid-December repurchase of $2 billion of its own stock. The report notes that shares of the firm climbed nearly 20% in the three days following the repurchase, an increase that "would have constituted a significant benefit to top executives at Goldman Sachs."
Also singled out was Citigroup's $8 billion loan to various Dubai public sector entities, also in mid-December. JPMorgan was similarly cited for its $1 billion investment in its cash management and financial services business in India in the beginning of November.
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http://money.cnn.com/news/newsfeeds/...6_FORTUNE5.htm
I can't rememeber how this went.
What Goldman wants, Goldman gets, or something like that.