Goldman prfs redeemed

[rogermunibond]

Goldman Sachs Group Inc Redeems 10% Preferred Shares

By Charlotte Ford - Apr 18, 2011 2:50 AM ET

 

 

The following redemption, via the company's call option, is effective today:

 

Issuer: The Goldman Sachs Group Inc (GS) Dividend: 10 percent Maturity: Perpetual Redemption Amount: 50,000,000 Shares Redemption Price: $110 per Share Amount Remaining: Fully Retired Security ID: EP0359141 Announcement Date: March 18, 2011

 

[Guest ValueCarl]

With Mr. Buffett off of their backs, Goldman is now in a position to rob, steal and PLUNDER society as a whole again!

 

NEW YORK (AP) -- Goldman Sachs' first-quarter income fell 72 percent after the bank paid out $1.64 billion in dividends as it redeemed preferred shares it issued to billionaire investor Warren Buffett during the financial crisis.

 

 

http://finance.yahoo.com/news/Goldmans-net-falls-72-pct-apf-3059151960.html;_ylt=AjkXJdx2kFs2Z94PxjQsLve7YWsA;_ylu=X3oDMTE1ZWltc2RrBHBvcwMzBHNlYwN0b3BTdG9yaWVzBHNsawNnb2xkbWFuYmVhdHM-?x=0&&sec=topStories&pos=main&asset=&ccode=

[ericd1]

Buffett's payday - Wow...You wake up and in the morning your bank account is up $7.1 billion - No wonder he skips to work.

 

I can see the smile on his face as he and Charlie exchange hi-fives this morning!

[gfp]

$5.5 B plus a couple hundred in interest, not 7.1 Billion higher. 

[ericd1]

The investment bank's first-quarter income fell 72 percent to $908 million after it paid $1.64 billion in dividends to Berkshire Hathaway Inc.

 

http://finance.yahoo.com/news/Goldmans-net-falls-72-pct-apf-3059151960.html;_ylt=AjkXJdx2kFs2Z94PxjQsLve7YWsA;_ylu=X3oDMTE1ZWltc2RrBHBvcwMzBHNlYwN0b3BTdG9yaWVzBHNsawNnb2xkbWFuYmVhdHM-?x=0&&sec=topStories&pos=main&asset=&ccode=

[gfp]

It's taxed as a preferred dividend.  The accounting basis of the preferred was $3.86 Billion because warrants can't be "free" from an accounting cost allocation point of view.  This is just the redemption at $5.5 Billion plus a couple of quarters of interest.