US Government Makes $25 Billion on Bank Bailouts

[Toro]

It's only counting some of the $787 Billion. Why is that?

The article is only counting actual government stock stakes in banks and insurance companies, not complete government outlays to banks and insurance companies.

This seems impossible considering the governments 80% stake in AIG, but bank shares were plumbing the bottom of the barrel when the TARP leg was passed and implemented. They have recovered considerably and that is likely where the government managed to close the gap.

Yet another case where the government posts misleading data.

$787 Billion out, $351 Billion is is a profit?

And they wonder why we commoners just don't think they are doing things correctly.

Where does it say $351 billion is a profit?

 

[asterism]

It's only counting some of the $787 Billion. Why is that?

Because I don't think all the $787 billion was used (though I could be wrong on that). For example, one program was called the public-private investment program, or P-PIP, which was supposed to use $100 billion in funds to buy toxic assets. But that program never really got off the ground, and I don't believe those funds were allocated elsewhere.

The estimates that I have heard is that ultimately, TARP will cost the US taxpayer $30 billion, but every time I hear an estimate, it keeps going down. I don't think the government should do another stimulus package nor another quantitative easing program, but $30 billion is a small cost to have kept us out of another Great Depression, which I believe was a near certainty had we not implemented TARP.

I agree that if TARP saved us and if the net cost is $30 Billion it was well worth it. I don't think the estimates are correct, and the government is selling bullshit by not disclosing all allocations.

 

[asterism]

The article is only counting actual government stock stakes in banks and insurance companies, not complete government outlays to banks and insurance companies.

This seems impossible considering the governments 80% stake in AIG, but bank shares were plumbing the bottom of the barrel when the TARP leg was passed and implemented. They have recovered considerably and that is likely where the government managed to close the gap.

Yet another case where the government posts misleading data.

$787 Billion out, $351 Billion is is a profit?

And they wonder why we commoners just don't think they are doing things correctly.

Where does it say $351 billion is a profit?

My mistake.

"The government has earned $25.2 billion on its investment of $309 billion in banks and insurance companies."

So that's $787 Billion out (or less as you said but we don't have any accurate figures) and $334 Billion in (309 + 25).

 

[william the wie]

I've been busy setting up a sale of division so I didn't get around to posting on this thread but let's see if I have this straight:

We know the original budget for TARP. $787 billion

We know how much capital has been returned from TARP. $334 billion of which $309 billion was original capital.

All unspent, recaptured and returns on capital TARP funds are supposed to be returned to the treasury. So where is the $812 billion that is supposed to be returned to the treasury or is this a prettied up way of saying $453 billion has been lost?

 

[asterism]

I've been busy setting up a sale of division so I didn't get around to posting on this thread but let's see if I have this straight:

We know the original budget for TARP. $787 billion

We know how much capital has been returned from TARP. $334 billion of which $309 billion was original capital.

All unspent, recaptured and returns on capital TARP funds are supposed to be returned to the treasury. So where is the $812 billion that is supposed to be returned to the treasury or is this a prettied up way of saying $453 billion has been lost?

It's really murky.

“These are all indirect subsidies the banks got,” Prins said. “So the TARP gains touted by the Treasury are only true if you ignore all the other costs.”

From the article.

 

[william the wie]

I've been busy setting up a sale of division so I didn't get around to posting on this thread but let's see if I have this straight:

We know the original budget for TARP. $787 billion

We know how much capital has been returned from TARP. $334 billion of which $309 billion was original capital.

All unspent, recaptured and returns on capital TARP funds are supposed to be returned to the treasury. So where is the $812 billion that is supposed to be returned to the treasury or is this a prettied up way of saying $453 billion has been lost?

It's really murky.

“These are all indirect subsidies the banks got,” Prins said. “So the TARP gains touted by the Treasury are only true if you ignore all the other costs.”

From the article.

I was afraid that might be the case.

 

[asterism]

I've been busy setting up a sale of division so I didn't get around to posting on this thread but let's see if I have this straight:

We know the original budget for TARP. $787 billion

We know how much capital has been returned from TARP. $334 billion of which $309 billion was original capital.

All unspent, recaptured and returns on capital TARP funds are supposed to be returned to the treasury. So where is the $812 billion that is supposed to be returned to the treasury or is this a prettied up way of saying $453 billion has been lost?

It's really murky.

“These are all indirect subsidies the banks got,” Prins said. “So the TARP gains touted by the Treasury are only true if you ignore all the other costs.”

From the article.

I was afraid that might be the case.

Honestly, it's too bad things have worked out that way because all of us who disagreed with this one subset of that program could have easily been proven wrong. As it turns out taking a stake in these banks who needed it as much as the government needed some measure of direct control worked out well. But in true government fashion, the good is dwarfed in comparison to the bad and then there's the abject misleading press releases written to "sell" the whole plan.

Stupid stupid stupid.

 

[Toro]

I've been busy setting up a sale of division so I didn't get around to posting on this thread but let's see if I have this straight:

We know the original budget for TARP. $787 billion

We know how much capital has been returned from TARP. $334 billion of which $309 billion was original capital.

All unspent, recaptured and returns on capital TARP funds are supposed to be returned to the treasury. So where is the $812 billion that is supposed to be returned to the treasury or is this a prettied up way of saying $453 billion has been lost?

It's really murky.

“These are all indirect subsidies the banks got,” Prins said. “So the TARP gains touted by the Treasury are only true if you ignore all the other costs.”

From the article.

There are definitely other costs. The biggest cost is that all these actions debase the currency.

 

[iamwhatiseem]

What is this...something like $.001 of every dollar spent in the spendulus?

 

[william the wie]

I've been busy setting up a sale of division so I didn't get around to posting on this thread but let's see if I have this straight:

We know the original budget for TARP. $787 billion

We know how much capital has been returned from TARP. $334 billion of which $309 billion was original capital.

All unspent, recaptured and returns on capital TARP funds are supposed to be returned to the treasury. So where is the $812 billion that is supposed to be returned to the treasury or is this a prettied up way of saying $453 billion has been lost?

It's really murky.

“These are all indirect subsidies the banks got,” Prins said. “So the TARP gains touted by the Treasury are only true if you ignore all the other costs.”

From the article.

There are definitely other costs. The biggest cost is that all these actions debase the currency.

Also given that banks are only 20% of the financial system and the much larger shadow banking system is still a well-heeled wildcat system with next to no government back up TARP was also pretty futile. It's like being charged for normal maintenance and then finding out on the bill that the rebuilt gas pump you brought the car in for was out of stock. I never went to that mechanic again.