Goldman’s Capital

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From the Wall Street Journal:

Goldman Sachs Group Inc., riding a rising market, is considering making a multibillion-dollar offering of its shares to investors as part of an effort to repay a $10 billion government loan, according to people familiar with the matter.

…In October, the Treasury Department forced the nation’s largest banks, including those that didn’t need additional capital, to take government funds. Goldman received $10 billion….Goldman executives privately say the firm doesn’t need new capital to pay back the loan but doing so would signal its financial health.

Let’s not shilly shally here: I don’t believe a word of this.  If Goldman could pay back the loan, which they only received six months ago, they’d just do it.  Conversely, there’s simply no way they’d try to raise private capital in the worst environment for stock offerings since the Depression unless they really needed the money.  What they say “privately” to the contrary isn’t worth the paper it’s not written on.

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Thank you!

We didn't know what to expect when we told you we needed to raise $400,000 before our fiscal year closed on June 30, and we're thrilled to report that our incredible community of readers contributed some $415,000 to help us keep charging as hard as we can during this crazy year.

You just sent an incredible message: that quality journalism doesn't have to answer to advertisers, billionaires, or hedge funds; that newsrooms can eke out an existence thanks primarily to the generosity of its readers. That's so powerful. Especially during what's been called a "media extinction event" when those looking to make a profit from the news pull back, the Mother Jones community steps in.

The months and years ahead won't be easy. Far from it. But there's no one we'd rather face the big challenges with than you, our committed and passionate readers, and our team of fearless reporters who show up every day.

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