As Big Banks Repay Bailout Money, U.S. Sees a Profit

[240 is Back]

Source: NY Times

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.

That does not include the roughly $35 million the government has earned from 14 smaller banks that have paid back their loans.

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.

[Bindare_Dundat]

lol

There is no profit until these other institutions pay the money back as is stated here,

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.

So this talk of profit is absolutely stupid.

[GigantorX]

lol

There is no profit until these other institutions pay the money back as is stated here,

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.

So this talk of profit is absolutely stupid.

The "profit" comes from the fact that the banks don't have to do 'mark to market' for all of the worthless securities etc that they still have...you wonder also why the Fed is against being audited? They have a balance sheet of over a stated 2 Trillion dollars, I wonder how much it is worth if those worthless assets were put up for sale?

Plus, the Tax Payer didn't make dick on this. When will I see my check? How much did this country TRULY lose from the meltdown? Inflation? More bubbles? Insane amounts of Govt. debt? Changes in the standard of living?

Wow, all those listed above....but the "Tax Payer" made 4 billion!

[Bindare_Dundat]

Your check is in the mail, you should be recieving it around 2129.

[Soul Crusher]

240 - How dumb have you become?

The only reason that the banks have been able to pay anything back is through higher fees to exsiting customers, paying back the money they received but never lent in the fist place, and other financial accounting gimmicks designed to mislead the public. 

[a_joker10]

TARP cost 750 billlion.

The government has seen $4billion return.

Seems like a net loss of 746 billion.

How does anyone celebrate that massive lies around this.

What a disaster.

[Hugo Chavez]

240 - How dumb have you become?
 

240 works for the ny times?

[Soul Crusher]

240 works for the ny times?

With the boot licking and suck up he does for anything and everything coming from Washington DC, he sure as well might be. 

[Bindare_Dundat]

I don't expect anything less from the NY Times as they have that idiot Paul Krugman talking about how the US is able to pile on even more debt and be OK as well as how deficits "saved the world".

[240 is Back]

240 - How dumb have you become?

The only reason that the banks have been able to pay anything back is through higher fees to exsiting customers, paying back the money they received but never lent in the fist place, and other financial accounting gimmicks designed to mislead the public. 

Look, please, suck my junk for a minute while I clarify here

I posted the article for discussion, without any commentary of my own.

I do this quite often to stir up debate and to see a new article completely debunked by wise members like bindare.  Do I believe we are "seeing a profit" in this money-printing, dollar-dipping times?  Of course not.  but I don't understand the topic enough to make a decision as to how I feel.  I let the input of well-versed members help me to decide what I believe.

bindare and joker, thank you for the numbers here.

[Soul Crusher]

With your constant adoration and admiration for this Admn and the stimulus and bailouts, dont you think it would be reasonable for most posters to assume you believed in this? 

[240 is Back]

With your constant adoration and admiration for this Admn and the stimulus and bailouts, dont you think it would be reasonable for most posters to assume you believed in this? 

you can assume anything you want.  I post a lot of stories without commentary.  I know 5 or 10 people here will expose the BS, and that's what I want to read, not some cheesy made-for-sheep news article.

[GigantorX]

TARP cost 750 billlion.

The government has seen $4billion return.

Seems like a net loss of 746 billion.

How does anyone celebrate that massive lies around this.

What a disaster.

The losses amount to far more, in the near and long term, than 1.5 trillion.

[Soul Crusher]

The losses amount to far more, in the near and long term, than 1.5 trillion.

AIG alone has cost hundreds of billions.

FDIC is going to need a bailout soon. 

Fannie/Freddy got billions and billions.

GM/Chrysler will be about 100 billion before all is said and done.