In the top of hour news segment on Morning Edition, NPR told its listeners that Goldman Sachs has repaid the taxpayer money it received. This is important because it is about to report that it earned approximately $1.8 billion in the 2nd quarter. It will also be giving large bonuses to its executives. While Goldman did repay the money it received under the TARP, it did not repay the $13 billion (approximately equal to 3 million annual family TANF payments) that it received from the government through AIG. Nor has it repaid the $28 billion in government subsidized loans that it obtained by borrowing with an FDIC guarantee. In addition, it may still be using the Fed's special lending facilities to borrow money short-term at below market rates. (The Fed doesn't reveal who borrows its taxpayer dollars.) The difference between the TARP money that Goldman did repay and the other funds, which it did not, is that the government imposed conditions on the TARP, such as restrictions on executive compensation. The other aid comes without conditions.
--Dean Baker
