Balking Banks

Goldman Sachs called off negotiations with Panasonic on Tuesday over electronics subsidiary Sanyo because they were not pleased with Panasonic's bid for the company. Panasonic offered $1.26 per share with a present value of $1.55 and a Goldman estimated worth of $2.58 per share. Sanyo is the world's number 1 producer of lithium-ion batteries and a major producer of solar cells, both very promising capacities for the future. If any of the past couple months have taught us anything its that the nations banks must raise capital in order to save themselves from failure. Most firms have had to do this by selling assets at unfavorable prices. It is becoming unacceptable for company's not to go through with offers like these when the future does not look good for the economy and the nation's business's. Eventually, firm's such as Goldman Sachs will be owned by the U.S. Government and essentially the tax payers. The less stake the government has in these companies, the less the country will have to pay for these mistakes. If the firm's in question can do what is necessary to save their companys, even if the terms are not favorable, then they have a responsibility to do so without waiting for government intervention.