Chairman, Friends of Goldman Sachs of Shit

I maintain my opinion that Goldman Sachs, America's top economic terrorists, have an in at both the Treasury and the New York Fed (should this really come as that much of a shock?) and have therefore been tipped off that something wicked this way comes for TARP recipient banks. Why else would they be so suddenly compelled to return the TARP cash they never really wanted in the first place?

A little birdie has most certainly whispered in their ear that due to whatever regulatory clusterfuck awaits commercial banking interests tied to TARP money, GS would be wise to disconnect from TARP and quick. How else can you explain their behavior? Financial incest at its finest, kids, and it doesn't get much better than GS and NY Fed.

MarketWatch reports:

Goldman Sachs Group Inc.'s choice to take steps to return government bailout funds is putting pressure on government officials, who may have mixed opinions about whether they want to see the mega bank return the dough.

Some regulatory observers argue that Treasury may not be so enthusiastic about taking back the funds immediately because of the negative image that it might have on the bank's struggling rivals.

However, others contend that bank regulators will be enthusiastic about any returns, in part, because it shows the capital markets have begun to work again. Another positive outcome: Treasury could then re-allocate the funds to other banks in need of capital injections.

Goldman announced late Monday that it will return $10 billion in bailout money by first offering $5 billion through an equity offering. The bank also announced that it made $1.81 billion in profits in the first quarter.

A New York banking attorney said Treasury pressed Goldman to accept a capital injection from the government against its will, in part, to encourage other banks to participate. He added that Treasury sought Goldman's participation so that other banks would agree to accept allocations without fearing that it would portray them in a negative light.

But if the Fed and Treasury have (mostly) kept TARP recipients under wraps, why would they feel the need to force the money on GS in the first place? As if we didn't know GS is well taken care of!

Goldman Sachs accepting FAILout funds at gunpoint, that's precious.

The official line is that Goldman's "regulator" the Fed fears how it will look if GS is first through the TARP repayment gate - what the fuck? Don't we want this money back? If the banks which took the money in the first place, either by choice or by force (?), are now bragging about profitability (despite insolvency in many cases - a denial which will eventually come out in the wash as it always does) then shouldn't the taxpayer report profitability along with them by getting our God damn TARP money back which should have never gone to any of the Street thieves in the first place?!

Only in Bizarro World would a broken country falling further down the debt spiral by the day actually turn away money from the very robbers who snatched it in the first place.

So what does the NY Fed know that we don't? And who is chirping in Goldman's ear?