The billions handed over to AIG which are then passed along to Goldman Sachs continues to be avoided in these discussions. It's all fine and good that Goldman is ready to pay back the TARP money but having this discussion without the indirect TARP payments is ridiculous. Pay that back and then let's talk about how Goldman can get around the pay restrictions associated with the TARP billions.
That's noteworthy because Wall Street's desire to pay off TARP loans has intensified as complaints about federal involvement in the banking sector have risen.There's nothing quite like listening to bank CEO's complain like this. The anger out there has nothing to do at all with these banks ruining the US economy. Folks like Dimon (who was one of the candidates for Geithner's job at Treasury) need to get out among real people for a change instead of the Wall Street crowd. There's a reason his type is disliked, especially when he makes comments like this.
Jamie Dimon, the CEO of JPMorgan Chase, warned in a speech last month of the dangers of the "vilification of corporate America." Less than a week later, Dick Kovacevich, the chairman of Wells Fargo, pronounced the government's plans to test the balance sheets of big banks "asinine."
Goldman execs have been considerably more politic. Asked last month at a conference whether Goldman would become the first big bank to return TARP funds, Gary Cohn, the firm's co-president, replied that he would be surprised if anyone "is really in position to give back TARP money till the results of the stress tests and first-quarter earnings are out of the way."