Government Makes Nice Return On TARP Bailout

Some good news about the billion dollar bailouts the federal government made last year. The NY Times reports, "The profits, collected from eight of the biggest banks that have fully repaid their obligations to the government, come to about $4 billion, or the equivalent of about 15 percent annually, according to calculations compiled for The New York Times." Still, the Times adds, "These early returns are by no means a full accounting of the huge financial rescue undertaken by the federal government last year to stabilize teetering banks and other companies. The government still faces potentially huge long-term losses from its bailouts of the insurance giant American International Group, the mortgage finance companies Fannie Mae and Freddie Mac, and the automakers General Motors and Chrysler. The Treasury Department could also take a hit from its guarantees on billions of dollars of toxic mortgages."

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By Jen Chung in News on August 31, 2009 10:29 AM

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Gothampc

And how many people were thrown onto the unemployment line because of this?

ides_of_march

Quite a racket they got going.

The government and big businesses are laughing their asses off in the face average American. If they get mad and complain, they get called a "mob' or "nazis" or "astroturfers." The arrogance of the American government at all levels is astounding. This is why this country needs another Boston Tea Party. What's going on right now is fiscal insanity, scorched earth economics: aka Marxism.

Mr Mel

The government will get the money back with interest. The banks will do it to get rid of their Federal partners and go back to making lots of money. They will give that money out as bonuses and a smidgen to the stockholders.

hotstepper

it's funny how little you hear of those "toxic assets" these days. that must be some huge rug they swept'em under.

Cautious Pessimist

That rug is called your children's tax bill, all of which will have to be repaid to China. With interest.

valeriob

Goldman, like others, never even wanted any bailout money. They took it and promptly returned 126% back to the gov for their discretionary mismanagement.