Goldman Beats Estimates, Will Issue Equity

Goldman, along with rival Morgan Stanley (MS) and major national banks like JPMorgan Chase (JPM), Citigroup (C), Bank of America (BAC) and Wells Fargo (WFC) were among the initial nine recipients of preferred equity investments made through TARP in October.

After hitting a 10-year low of $47.41 in November, however, Goldman shares have more than doubled leading to rampant speculation about an equity offering in recent weeks.

While big banks like Wells Fargo and BofA have talked about repaying TARP investments, Goldman is the biggest name yet to take steps to repay the government capital. Several smaller financial institutions have also moved to repay the money.

First Niagara (FNFG) on Monday said it was issuing new stock to repay the government's $184 million TARP investment and several other small banks also have sought to get out from under the government's thumb.

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