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NEW YORK — Goldman Sachs Group Inc. said Wednesday it has repaid the $10 billion it received last fall as part of the government's $700 billion bank bailout program.
Goldman was one of hundreds of banks that received the money as part of the Treasury Department's program to help revive the stagnant credit and lending markets amid one of the worst periods of the credit crisis.
In total, Goldman paid $10.04 billion to the Treasury Department. The repayment included dividends owed on the investment.
The government provided banks with capital in exchange for preferred stock and warrants to purchase common shares. The investment also included certain restrictions, such as caps on executive compensation that left some banks pushing to repay the loan as quickly as possible.
The $10.04 billion Goldman paid the government Wednesday does not include the repurchase of the outstanding warrants.
Goldman said the dividend charges tied to the repayment will reduce the New York-based bank's second-quarter earnings by about 77 cents per share. Analysts polled by Thomson Reuters, on average, forecast earnings of $3.31 per share for the second quarter.
Long considered one of the strongest banks amid the credit crisis and ongoing recession, Goldman was one of the first large banks to repay the TARP funds.
JPMorgan Chase & Co., Morgan Stanley, U.S. Bancorp and BB&T Corp. also said Wednesday they repaid government investments as part of the program.
Last week, the government granted 10 of the country's largest financial firms approval to pay back a total of $68 billion in TARP funds. Wednesday was the first day those banks were eligible to repay the loans.
Shares of Goldman fell $2.25 to $141.91 in afternoon trading.
