TARP Inspector Says Taxpayers Still in the Hole
By Philip van Doorn - 04/25/12 - 5:38 AM EDTTheStreet) -- The U.S. Treasury Department's own Inspector General for the Troubled Asset Relief Program, or TARP, on Wednesday contradicted a previous Treasury statement that the bank bailout program was profitable. In its quarterly report to Congress, the Special Inspector for TARP said "It is a widely held misconception that TARP will make a profit. The most recent cost estimate for TARP is a loss of $60 billion," adding that "taxpayers are still owed $118.5 billion (including $14 billion written off or otherwise lost)." Enron 10 Years After -- From Bad to Worse >> This directly contradicts a statement by the Treasury in late March, after the agency took losses of $48.8 million after its decision to auction its preferred shares in six banks owing TARP money at a discount, that it had "recovered $260 billion from TARP's bank programs through repayments, dividends, interest, and other income - compared to the $245 billion initially invested," so that "each additional dollar recovered from TARP's bank programs is an additional dollar of profit for taxpayers." Of course, the biggest TARP recipient was American International Group
Bank of America
which initially received $15 billion in TARP money, followed by another $30 billion in January 2009, after the company acquired Merrill Lynch. Bank of America fully redeemed its TARP preferred shares in December 2009.
received $25 billion in TARP money, plus another $20 billion through the government's "targeted investment program." Citigroup repaid the $20 billion in December 2009. The original $25 billion state was converted into common shares with the government completing its sale of the common in January 2011, for a total of $31.9 billion.
received $25 billion in TARP money, which it fully repaid in June 2009.
also received $25 billion in bailout funds, which it fully repaid in December 2009.
received $10 billion in bailout funds, which it repaid in June 2009.
also received $10 billion in TARP money, redeeming the government's preferred shares in June 2009.
Bank of New York Mellon
took $3 billion in TARP funds, fully redeeming the government's preferred shares in June 2009.
received $2 billion in TARP money, and repaid the government in June 2009.
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