August 21, 2012

THANKS, W:

Bailout Programs Return $1.5 Billion (Daniel Gross, 8/21/12, Daily Beast)

Four years after the Lehman Brothers crisis, housing finance remains a mess. But the Trouble Asset Relief Program (TARP), the crisis-era measures aimed at saving the banks, stabilizing credit markets, and preventing the auto companies and the insurer AIG from plunging into liquidation, have largely succeeded. And at a very low cost to the taxpayer. By and large, the recipients of cheap government capital have returned the cash they took - and with interest.  The central component of TARP was the Capital Purchase Program, in which Treasury bought interest-yielding preferred shares in banks and received warrants in return. Here is the latest daily TAPR update. Between the CPP and extra aid given to Citigroup and Bank of America, Treasury put $245.1 billion into banks. So far, those recipients have returned $231.11 billion of that capital. Add in dividends ($15.2 billion), proceeds from the sale of warrants ($9.19 billion), and cash raised from selling Citigroup and Bank of America stock ($9.36 billion), and the taxpayers have received  a total of $264.86 billion back. That's a profit of nearly $20 billion.

Posted by at August 21, 2012 4:02 PM
  

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