I was looking into the possibility of selling short Goldman Sachs stock when I was struck by this in its 2008 annual report:
“In October 2008, under the U.S. Treasury’s TARP Capital Purchase Program, we issued to the U.S. Treasury 10.0 million shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series H (Series H Preferred Stock), and a 10‑year warrant to 18,600 purchase up to 12.2 million shares of common stock at an exercise price of $122.90 per share, for aggregate proceeds of $10.00 billion.”
There is absolutely nothing in the U.S. Constitution that even remotely justifies a U.S. Treasury investment in Goldman Sachs. Is the U.S. government Fidelity or Vanguard?
I am a lender to GS willy-nilly while considering that I not only do not want to finance this company but I might even want to short it. I feel I am in some kind of insane asylum.
2:00 pm on April 21, 2009
