Goldman wants to repay bailout money this year

NEW YORK - Goldman Sachs Group Inc.'s chief financial officer said Wednesday the bank would like to pay back the $10 billion in financial rescue funds it received from the Treasury Department some time this year.

Goldman Sachs received the investment last fall as part of the government's bailout program intended to encourage lending between banks and to consumers. Under the agreement, companies that receive funds through the program can repay the government with money raised from sales of new stock.

Goldman's CFO David Viniar was quoted by media outlets as saying at an investor conference Wednesday that the bank would consider raising capital this year to pay back the investment. Company spokesman Ed Canaday confirmed that Viniar made the remarks.

The Treasury Department has invested about $195 billion in more than 350 institutions since October.

Institutions that participate in the program must comply with restrictions on executive compensation during the period that the government holds preferred equity in the company. Banks that receive funds pay a five percent dividend on senior preferred shares for the first five years following the investment, and a rate of nine percent per year thereafter.

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