The company offered to sell Buffett's Berkshire Hathaway (BRK.A) $5 billion in preferred shares with warrants paying 10% interest. Buffett bought in and as since earned over $2 billion in profit.
Today, thanks to both Buffett, and the billions of dollars from the taxpayer's bailout, Goldman Sachs holds the throne as the reigning king of Wall Street. Recently, the firm has returned to announcing strong earnings and setting aside large bonus pools for its employees.
However, while the bank holding firm is riding high, the rest of the U.S. economy can not say the same. With rising debt, high levels of unemployment, and other problems, the taxpayers who saved Goldman continue to suffer from the mess the firm helped to create. Needless to say, many taxpayers have responded with anger, questioning whether or not Goldman was worthy of their help in the first place.
This week, CEO Blankfein showed his empathetic side by issuing an apology on behalf of the financial giant. At a New York corporate conference, the CEO told listeners that Goldman regretted taking part in the cheap credit boom that helped fuel the pre-crisis bubble.He then turned the focus onto Goldman Sachs' newest venture: a program to help small businesses. Co-chairing the "10,000 Small Businesses" initiative would be none other than Warren Buffett. The aim of the "10,000 Small Businesses" program is to provide small businesses in the United States with access to capital, education and networking opportunities in hopes of spurring productivity and getting them back on their feet.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV