More on Goldman Sachs Trying To Pay Back TARP

Follow up to our original post - new article from Andrew Ross Sorkin at NY Times asks an interesting question, if Goldman Sachs (GS) is working towards paying back TARP how will that impact the rest of the industry?

When TARP was originally introduced all the major banks were required to take a piece to eliminate the stigma of taking government money. But you may see the same problem if some banks pay it back while others are unable to.

If Goldman can pay back the $10 billion in the next month, one would have to assume that their traders are once again killing it. Perhaps the capital may come from a secondary offering, because raising $1 billion from the sale of ICBC is not enough to get the job done. Last quarter they reported over $100 billion in cash on their balance sheet but they will probably want to keep a large horde of capital reserves just in case.