Posted on 08/24/2012 7:29:18 AM PDT by Jimmy4Toes
The Federal Reserve said taxpayers ended up earning $17.7 billion from the central bank's role in bailing out insurance giant American International Group Inc.
On Thursday, the Federal Reserve Bank of New York, the investment management arm of the Fed, sold the last of the asset-backed securities it acquired in the multi-step bailout of AIG, which the central bank engineered in 2008 with the Treasury Department.
The government pledged more than $182 billion to AIG in exchange for a 92% ownership stake as it stepped in to keep the company from filing for bankruptcy and possibly causing a global meltdown in financial markets.
AIG used about $125 billion of the money, and the Fed and Treasury have been working since 2011 to extricate the government from AIG.
(Excerpt) Read more at chicagotribune.com ...
I know I feel better and wealthier now.
How much has each taxpayer received from that deal? When a company has to pay a huge fine to the government, as BP paid $20 billion after the Gulf oil spill, why does the government get to keep that money? Why shouldn’t it have been prorated to the Gulf states affected by the spill, according to the damages each suffered?
All fines levied (extorted) from businesses should be paid to the people affected, not dumped into the federal coffers to be blown by agencies like the GOA. It’s our money!!!
LOL!!
“How much has each taxpayer received from that deal? When a company has to pay a huge fine to the government, as BP paid $20 billion after the Gulf oil spill, why does the government get to keep that money? Why shouldn’t it have been prorated to the Gulf states affected by the spill, according to the damages each suffered?”
You must be delusional. The government doesn’t care about the displaced businesses, or people. The 20 billion was just a shakedown of a company with deep pockets. Not unlike the bull$hit tobacco settlement.
I doubt it.
Plus, small time shareholders still got hosed.
I doubt it.
Plus, small time shareholders still got hosed.
” Earned $17B or got back $17b on an $125B loan. looks like a $108B loss to me. “
Talk about “voodoo economics”
Don't think that is the case. The net profit was was $17B
Hate TARP or not; those are the facts.
If I'm not mistaken, the AIG bailout and Tarp are different things. AIG was a direct and accountable bailout. Tarp is a giant slush fund with loosely defined rules and accountability.
AIG can be accounted for by money in and money out.
Tarp money moves in, out, around and through. Deceptive claims of loss or gain are made on snapshots of money movement rather than beginning to end accounting.
Can we subtract $17 billion from “the inherited Bush deficit”?
Along with all the TARP that was paid back with interest?
Surely it all went back into reducing the deficit...
sarc
I agree in the case of AIG, I am not so sure in respect to TARP.
Tarp funds did some really fishy things. They would go out. Some would come back then go out to a second entity then cirle back to the first entity who would pay of the balance of what they owe. Then the same money would go to a third entity, etc. I have not seen a single article, even those claiming a government profit off Tarp, which would satisfy an honest accountant that the money left the treasury and finalized by returning to the treasury fully traceable.
That isn't how it ended up.
” The Government seldom makes a profit. They still have time to run it into the ground. “
They will.
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