I'm surprised GS wants to pay back the TARP $10billion so quickly. They are paying $500Million/yr to keep that $10Billion.

GS also "borrowed" $5Billion from Berkshire Hathaway, giving BH preferred shares for its $5Billion. The preferred shares pay 10%. So GS is paying $500Million/yr to keep that $5Billion from BH.

The BH preferred does have a 10% premium that GS must pay to retire it. But this means GS has the choice: 1) Retire $500Million/year of interest payments by giving $10Billion cash to TARP 2) Retire $500Million/year of interest payments by giving $5.5Billion cash to Berkshire Hathaway.

It makes you wonder just what is so bad about holding TARP money that it is worth $4.5Billion to buy your way out from under.