US sees profit from TARP bailout

Discussion in 'Politics' started by rightwinger, Aug 31, 2009.

  1. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Good job by Bush


    By Zachery Kouwe
    NY Times

    updated 4:55 a.m. ET, Mon., Aug 31, 2009
    Nearly a year after the federal rescue of the nation’s biggest banks, taxpayers have begun seeing profits from the hundreds of billions of dollars in aid that many critics thought might never be seen again.

    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.

    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.

    Welcome surprise
    But the mere hint of bailout profits for the nearly year-old Troubled Asset Relief Program has been received as a welcome surprise. It has also spurred hopes that the government could soon get out of the banking business.
    “The taxpayers want their money back and they want the government out of our banking system,” Representative Jeb Hensarling, a Texas Republican and a member of the Congressional Oversight Panel examining the relief program, said in an interview.

    Profits were hardly high on the list of government priorities last October, when a financial panic was in full swing and the Treasury Department started spending roughly $240 billion to buy preferred shares from hundreds of banks that were facing huge potential losses from troubled mortgages. Bank stocks began teetering after Lehman Brothers collapsed and the government rescued A.I.G., and fear gripped the financial industry around the world.

    American taxpayers were told they would eventually make a modest return from these investments, including a 5 percent quarterly dividend on the banks’ preferred shares and warrants to buy stock in the banks at a set price over 10 years.

    But critics at the time warned that taxpayers might not see any profits, and that it could take years for the banks to repay the loans.

    As Congress debated the bailout bill last September that would authorize the Treasury Department to spend up to $700 billion to stem the financial crisis, Representative Mac Thornberry, Republican of Texas, said: “Seven hundred billion dollars of taxpayer money should not be used as a hopeful experiment.”
    So far, that experiment is more than paying off. The government has taken profits of about $1.4 billion on its investment in Goldman Sachs, $1.3 billion on Morgan Stanley and $414 million on American Express. The five other banks that repaid the government — Northern Trust, Bank of New York Mellon, State Street, U.S. Bancorp and BB&T — each brought in $100 million to $334 million in profit.

    http://www.nytimes.com/2009/08/31/business/economy/31taxpayer.html

    Link Sources as per the regulations. - KK
     
  2. VaYank5150
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    VaYank5150 Gold Member

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    By the way, has our government taken ANY steps to regulate these idiots concerning the Credit Default Swaps that got them into this mess in the first place?
     
  3. Contumacious
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    Contumacious Radical Freedom

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    Bullshit.

    That information can not be independently verified.

    President Andrew Jackson was in the same predicament but told the bankers to go fuck themselves.

    ""Gentlemen, I have had men watching you for a long time, and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out."

    ~ President Andrew Jackson 1832

    Contrast the words of President Andrew Jackson who had a strong moral compass and a firm grasp of right and wrong to the words of our current President, George W. Bush.
     
  4. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Verified by who??

    You can't admit that the bailout actually worked and the banks paid us back. Your defense is to cover your eyes, put your head in the sand and go into denial mode
     
  5. Vast LWC
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    Vast LWC <-Mohammed

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    Umm, yeah, "verified" by who?

    Profits are profits. Go and look em up.

    Looks like Bush did something right. ROFL. I'll give him credit for it.

    And I've got to tell you, that's a very surprising thing for me to say, I never give Bush credit for anything.

    And all the Dems in congress that supported his move deserve some credit too I guess.

    Of course, all the Republicans were completely against the Bailouts.
     
    Last edited: Aug 31, 2009
  6. Polk
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    Polk Classic

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    And his refusal to sign the bill to renew the charter of the Bank of the United States resulted in the rise of wildcat banking, causing the Panic of 1837.
     
  7. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Keep in mind where we were before the TARP bailouts.
    The financial community was in a panic, the stock market lost 50% of its value, no loan money was available..... we were borderline depression if something wasn't done

    The government, by stepping in to shore up the banks, returned confidence to the market and saved us from a complete economic collapse.

    I'm willing to give Bush credit on this....he coordinated with President-elect Obama who supported him and helped get bi-partisan support.

    To the republicans who voted against it and still oppose it.......... :funnyface:
     
  8. Vast LWC
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    Vast LWC <-Mohammed

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    Of course no right-wingers are going to provide any kind of input on this thread, besides some obscure reference to Andrew Jackson apparently...

    They don't have any talking points for this. LOL.

    We'll have to keep bumping it to keep it alive.
     
  9. Vast LWC
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    Vast LWC <-Mohammed

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    Bump.
     
  10. Vast LWC
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    Vast LWC <-Mohammed

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    Still nothing. Surprise, surprise.

    LOL.
     

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