July 22, 2009

THANKS, W!:

Goldman Buys Back TARP Warrants for $1.1 Billion (Matthew Jaffe, July 22, 2009, ABC News)

When the government dished out funds from the $700 billion Troubled Asset Relief Program to help ailing banks, the Treasury Department then received warrants to buy common stock in these banks. As banks like Goldman now pay back the bailout money, the government then has to work out deals to repurchase the warrants.

A Treasury official said today, "In just 9 months, the taxpayers have been repaid the full $10 billion that the government originally invested, along with $318 million in dividends; and Goldman is repurchasing the warrants for $1.1 billion, generating a total of $1.418 billion in payments to the government. That amounts to an annualized return of 23.15 percent on the taxpayer's investment."

"The capital infusion has helped drive greater stability in the financial system, private capital has replaced taxpayer investments at many banks, and the taxpayers have gotten a good return on their investment," the official said. "And the process we designed to value the warrants and protect the taxpayers worked well."


The House GOP threw itself on the funeral pyre rather than allow this?

Posted by Orrin Judd at July 22, 2009 6:48 PM
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