Goldman Sachs is going to be the first of the big financials to offer three year bonds to investors that are 100% guaranteed by the Fed. According to WSJ, the bonds are going to yield 200 bp over like-dated treasuries. The U.S. govvy 10 year pays investors 3.22% today. you you can buy what is functionally the same piece of paper yielding 5.2% tomorrow.
That's a good deal. It's also possible that if you own enough, one of your kids can get a job at Goldman. Jim Altucher at Real Money pointed out yesterday that before yesterday's spike, Goldman preferred was yielding around 15%.
Lots of ways to skin a cat.