Bank Bailout Now Paying Taxpayers Back

Discussion in 'International Current News & Events' started by kogneto, Jun 14, 2010.

  1. kogneto

    kogneto The Skeptic

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    Bank Bailout Now Paying Taxpayers Back



    Monday June 14, 2010
    Don't start looking for a dividend check, but U.S. taxpayers are actually beginning to profit from the controversial Troubled Asset Relief Program (TARP) banking industry bailout program, according to a downright giddy about it Treasury Department.
    In its May monthly Troubled Asset Relief Program (TARP) report to Congress, the Treasury announced that TARP bailout repayments to taxpayers have, for the first time, surpassed the total amount of TARP funds outstanding.

    The Treasury report showed that, through the end of the May, TARP repayments had reached a total of $194 billion, which exceeded the total amount of TARP funds outstanding ($190 billion) by $4 billion.

    In December 2009, Congress voted to bailout failing major U.S. banks by buying $245 billion worth of their preferred stocks - basically a loan in the form of an investment -- paid for by the taxpayers. The bank bailout helped stabilize the stock market, and now the TARP "loan" is now being paid back to taxpayers through profits made from the sales of those stocks.

    For example, the Treasury Department credits the $6.18 billion in gross proceeds made from its recent sale of 1.5 billion shares of Citigroup stock for allowing total TARP repayments to exceed TARP funds still outstanding.

    "TARP repayments have continued to exceed expectations, substantially reducing the projected cost of this program to taxpayers," said Assistant Secretary for Financial Stability Herb Allison in a press release. "This milestone is further evidence that TARP is achieving its intended objectives: stabilizing our financial system and laying the groundwork for economic recovery."

    In addition to the $194 billion in TARP repayments, the Treasury report shows that taxpayers have received an additional $23 billion through dividends, interest, and other income generated by the TARP investments.

    While no dividend checks will appear in our mailboxes, success of the TARP bank bailout will theoretically reward taxpayers with a stable economy, less government spending, new jobs, a chicken in every pot... you know the drill.
     
  2. ZoomZoom

    ZoomZoom Rookie Prepper

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    I'll withhold judgment until the content of this report is vetted by independent sources.

    The source link appears to be a government site. I trust that about as much as when GM said they paid back their loans. When they dug into it, it was found that GM paid back their loans with other money borrowed from the government.
     

  3. kogneto

    kogneto The Skeptic

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    right well I'm sure you're keen senses picked up the word "gov" and stopped reading but you can find a similar article in the LA Times, the Wall Street Journal, CNBC, Bloomberg, NY Times, but if you need a "fair and balanced" (pffft:nuts:) you can turn to Faux News

    Here's how they have reported as of 8am 06/15/10 on the TARP repayments.

    On June 14, 3 days after WSJ and other posted on this, [ame="http://video.foxnews.com/v/4238445/new-round-of-emergency-aid-needed"]Tom Price[/ame] commented briefly about money that had yet to be spent, well over what was needed to be repaid.

    This story briefly cites TARP funds under the Neil Cavuto On Business section (hit ctrl+f to search for the word TARP)

    Here's a brief comment by Kilmeade and Friends radio program. Supporting Paulson, bashing Obama, average boilerplate stuff. No comments allowed.

    Barely a mention on this page (Basically what I did was pull up Fox's search program and entered the single word "TARP")

    here is the link to the search I used,

    Search for tarp

    It's searching story's, videos, blogs, by date for anything with the word "tarp" including a story about a man hiding under a "tarp" while evading police.

    Please dude, you're gonna ask a journalism student about how will his sources are vetted?
     
  4. saintsfanbrian

    saintsfanbrian Liberty or Death!!!!

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    Not going to get too excited. The Fed (not a government entity) bailed themselves out and now they are paying themselves back. I wish I could do that and make people happy.
     
  5. ZoomZoom

    ZoomZoom Rookie Prepper

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    Kogneto

    What I read from the article is that we got about 1/2 of our money back + $23B in interest.

    What the article doesn't say is that they're struggling to get the other $190B back and probably won't get a good chunk of that returned so the taxpayers will have to loose that amount.
     
  6. sailaway

    sailaway Well-Known Member

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    They can keep the money, it's worthless, :gaah:just give me and the rest of us a car and we'll call it even!:2thumb:
     
  7. kogneto

    kogneto The Skeptic

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    I'm with you buddy, but how about a truck?
     
  8. Bigdog57

    Bigdog57 Adventurer at large

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    I'd settle for a guarentee I won't lose my job, and will actually have something left in the Social Security System when I retire in ten years or so....... ;)
     
  9. kogneto

    kogneto The Skeptic

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    lol sucking that government teat
     
  10. Bigdog57

    Bigdog57 Adventurer at large

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    Hell yes! Worked twenty years so far for it - I damned well WANT it!! :mad:

    An earned benefit ain't welfare......... I got too much sweat equity in it.
     
  11. alanz

    alanz Active Member

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    This. The Fed is the only private bank that's convinced the public that the more rich and powerful they are, the better it is for the public.
     
  12. ZoomZoom

    ZoomZoom Rookie Prepper

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    More Than 90 Banks Miss May TARP Payments

    Full article
    More Than 90 Banks Miss May TARP Payments

    Exerpt:
    In some cases, small banks are renegotiating the repayment terms. Midwest Banc Holdings, for example, agreed to swap $84.8 million in preferred shares issued under the TARP program in 2008 for $15.5 million in common shares. That would have meant an 80 percent loss for the government—and the U.S. taxpayer—on the initial investment. But the swap was contingent on the bank raising more private capital, which it failed to do. Regulators seized the bank in May.
     
  13. kogneto

    kogneto The Skeptic

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    well it would seem to make sense that a smaller bank would have a harder time paying back that money, as the market is still hairy, but I like that any exception requires bold titles and size 4 fonts ;)