As Treasury feeds us a steady diet of how much money taxpayers are making off the Troubled Asset Relief Program, you have to wonder why nobody thought of this idea sooner.
After all, if the worst that can happen from the collapse of the banking system is that we make money rescuing failing institutions, then who really cares how much risk they take? Can the Department of Bank Bailouts be far behind?
This seems to be the undercurrent of the crowing from the Treasury and bailed-out banks themselves as we get regular accountings of who is paying back how much and at what profit.
Most recently, Robert Benmosche, CEO of American International Group,appeared on CNBC and bragged that Treasury would reap a profit of as much as $15 billion from the bank’s TARP repayments.
AIG recently gave back $6.9 billion and has made an offer of $15 billion to buy back the garbage bonds that Treasury took off its balance sheet during the insurer’s rescue in September 2008.
If what Benmosche says is true, then Treasury actually might be lowballing the figure it has provided regarding how much the TARP will make on the $411 billion it has disbursed so far.Page 1 of 4 | Next Page