Subsequent to the fall of Lehman Brothers in September 2008, Goldman Sachs’ executives sold approximately $700 million worth of stock, reported Financial Times. As per the filings with the Securities and Exchange Commission, majority of the sales had taken place when the beleaguered investment bank got a lifeline of $10 billion under the troubled asset relief program.
The newspaper has reported that between September 2008 and April 2009, Goldman executives sold more than $691 million in company stock, as the bank expanded its public float from 395 million to 503 million shares in numerous capital raises. During the comparable period between September 2007 and April 2008, Goldman partners sold only about $438 million in stock.
A major chunk of selling occurred between December 2008, after Goldman reported its first quarterly loss as a public company, and mid-February. In that two-month window period, Goldman executives sold more than $280 million worth of company stock.
After surviving the global financial crisis that toppled several top financial institutions, the bank is expected to report healthy 2009 second quarter results due to its rebound trading profits. Last month, Lloyd Blankfein, Chairman and Chief Executive, said: “We are grateful for the government’s extraordinary efforts and are pleased to be able to return to the US Treasury the funds that were invested in Goldman Sachs.”
