David Viniar, CFO of American investment banking firm Goldman Sachs, has said that the company plans to repay $10 billion it received through the U.S. government’s troubled asset relief programme, by the end of 2009, to escape the government-imposed restrictions associated with the funds.
The purpose of TARP’s capital purchase programme is to allow the U.S. Treasury to make capital investments in healthy financial institutions to promote confidence and stabilisation in the economy. This increases Blackhawk’s capacity to lend money and make investments in the communities it serves. By making this programme available to community banks, the U.S. Treasury is ensuring that its economic recovery programmes reach main street businesses and communities.
Mr. Viniar’s comments came soon after the U.S. president Barack Obama and the treasury secretary Timothy Geithner announced that top executives at companies that receive exceptional aid from the government will have their salaries capped at $500,000. However, Goldman has not received exceptional assistance from the government.
According to reports, while receiving the government funds in October 2008, the company agreed to certain compensation restrictions and capital requirements set by the government.
Mr. Viniar added that the company is neither interested in retail banking nor is it in a hurry to acquire any financial institution.
