(Community Matters) In my earlier post, I questioned the reasonableness of a 23% annualized return on taxpayers $10 billion TARP equity investment in Goldman Sachs. Stated then that we should be earning the same return as Warren Buffet for his $5 billion preferred stock investment in the company. Guess what . . . the American taxpayer got screwed. Warren earned a 111% annualized return – which sounds appropriate given the risk taken.
Congress should hold hearings on how the hell Treasury settled on $1.1B for its warrants (which when added to the $318mm in preferred stock dividends totaled a paltry 23% for an equity injection of last resort). By my calculations, Goldman Sachs owes US taxpayers $5.4 billion.
Community Matters 
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