Federal Department of Goldman Sachs

The Federal Department of Goldman Sachs (NYSE: GS) beat earnings
expectations with a $4.79 billion profit for the 4th quarter. Goldman
has strong gains in its investment banking division, which handles
stock and bond underwriting deals. Go figure. With companies selling
debt and stock like crazy to pay off TARP money and improve their
balance sheets, it’s no wonder Goldman did well.

Goldman earned
$13.4 billion for the year. But I haven’t seen if this figure includes
the $25 billion in funneled TARP money it received from AIG (NYSE: AIG)
to pay off credit default obligations (CDOs).

As you know I’ve
criticized Treasury Secretary Geithner for handling the banks with kid
gloves. And the fact that his office attempted to suppress the
transaction that had AIG paying Goldman off with bailout money is more
than just a black eye for him, in my opinion.
President Obama was wrong to nominate him. But you have to wonder how
much choice he had. After all, the Federal Department of Goldman Sachs
is pretty powerful.