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Golman Sachs may offer stock to raise capital

Goldman Sachs Group Inc. is considering raising new capital through a stock offer as part of a plan to repay government funds, according to a report Friday in The Wall Street Journal.

NEW YORK — Goldman Sachs Group Inc. is considering raising new capital through a stock offer as part of a plan to repay government funds, according to a report Friday in The Wall Street Journal.

Last fall, Goldman received $10 billion in government funds as part of the Treasury Department’s program aimed at kickstarting the credit markets. Goldman executives in recent weeks have said they would like to repay the government loan in the near future.

An announcement from Goldman (NYSE:GS) about the offer could come as early as next week, according to the Journal report citing anonymous sources. A Goldman spokesman declined to comment.

Goldman, widely considered among the strongest banks during the credit meltdown and recession, is scheduled to report its first-quarter results Tuesday. Analysts polled by Thomson Reuters, on average, forecast the New York-based bank will earn $1.60 per share for the quarter.

Shares of Goldman have been steadily climbing in recent weeks as financial stocks have led a rally in the market. Goldman shares have risen 47 per cent since the beginning of the year. Goldman shares closed Thursday at $124.33.