Goldman Sachs Redeems TARP Warrant For $1.1 Billion
July 22, 2009 (FinancialWire) — The Goldman Sachs Group, Inc. (NYSE: GS) said it has redeemed the warrants the U.S. government received in connection with its investment in the firm through the TARP’s Capital Purchase Program at $1.1 billion.
The purchase price was determined by the U.S. Treasury Department. In a statement, Goldman said that, while there are a number of ways to value the warrants, including through a public auction, “we believe that in the context of the extraordinary actions taken by the government to help stabilize the financial system, this valuation of the warrants represents full and fair value.”
In June, Goldman Sachs repaid the U.S. Treasury’s investment of $10 billion, and during the eight months of the investment, the firm paid $318 million in preferred dividends. The payment of the dividends and the redemption of the warrants total $1.418 billion.
New York-based Goldman Sachs is a global financial services firm providing investment banking, securities and investment management services to a client base that includes corporations, financial institutions, governments and high-net-worth individuals.
The firm maintains offices in London, Frankfurt, Tokyo, Hong Kong and other financial centers around the world.
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