Skip to comments.TARP: The bailout success story that wasn’t
Posted on 02/12/2013 11:19:48 AM PST by illiac
Remember the Troubled Asset Relief Program, better known as TARP? When we last heard from the Treasury Department, on Jan. 23, TARP was being wound down. It was, in the estimation of Timothy Geithner & Co., a success: 93% of the $418 billion disbursed had been collected including $70 billion last year. Read the latest Treasury Department progress report on TARP .
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The idea that TARP is somehow a wash because a few banks repaid the bailouts with interest is misleading. The reality is that bailed-out firms essentially wrote off their losses on taxes. As of Dec. 30, TARP was still owed $67.3 billion, including $27 billion in realized losses which is to say, that money is gone and is never coming back. See the inspector generals Jan. 30 report on TARP .
Now, TARP is losing money as it tries to exit the programs.
(Excerpt) Read more at marketwatch.com ...
Who knew?! Why am I not surprised?
The money center banks get plenty of Gov’t and FED subsidies, which have allowed them to re-cap themselves and pay off their TARP loans.
For example, they can borrow at zero percent from the FED and buy US Treasuries for 2-3%. They have gauranteed profits by originating mortgage loans, taking fees from customers, and selling the loans risk-free to FHA. As far as market-risk is concerned, this implicit guarantee of “too big to fail” means they have the same risk as Gov’t sponsored entities.
It is crony-capitalism at its worst.
Some of us knew this all along.
If the Republicans had stuck to attacking TARP and other bailouts we would have the Presidency and possibly the Senate. If the Tea Party had stuck to that theme as well they would have a lot more people in office and sending them checks.
We told you so.
But, But Ben said the FED has never lost money on TARP. They are only allowed AAA investment grade paper.
The bankers has taken over the checkbook. Only the Bankers can get a govt loan and not pay it back.