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The guarantee covers the difference between the value of the car and the amount the buyer owes, or negative equity, up to a maximum of $7,500.
Either way, without selling their homes, at the end of the third year homebuyers would be quickly and fully compensated for any loss of equity, up to the amount of their down payment.
Currently, Goldman is sitting on $64 billion of shareholder equity, up from $46.6 billion at the end of 2008, meaning that it has to work harder to generate the same return on equity.
I think I did the right thing by trying to give them their equity up front in the way a nonprofit can" as salary.
Mr. Hemmerdinger said the deal requires the developers to invest equity up front and sign guarantees to avoid the possibility that the deal could languish half-built.
The company, Mr Dell's family office MSD Partners, private equity backer Silver Lake, and the Singapore state investor Temasek will provide equity up to $50bn of bank debt will be used to finance the takeover.
Similar(43)
European share prices have climbed quickly in the past year, with German equities up by almost 40% since January 2005.
Goldman is cautious about US equities (up a bit), thinks oil will fall in the short-run but recover, and that commodities are not that bad a prospect.
"Part of me says, how often does an equity investor have everybody from the Bank of Japan, the United States Congress, the European Central Bank and the Fed working day and night to get equities up?" he asked.
About 50% of American households now have a stake in equities, up from 13% in 1980.
It may also be hard to tap any equity locked up in the property.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com