U.S. Turns Profit on Bank Bailouts

1 09 2009

Another surprise report from the media today. The U.S. government has made a profit of about $4 billion on the bank bailout program so far as some of the largest banks have already repaid their loans, according to a report by the New York Times. Can this be true?

The article said the profit so far amounts to about a 15 percent return annually, and that the news comes as a pleasant surprise given a lot of controversy around the Troubled Asset Relief Program when it was approved.

The profit so far has included $1.4 billion from Goldman Sachs, $1.3 billion from Morgan Stanley and $414 million on American Express, as well as between $100 million and $334 million in profit from the five other banks that have repaid the government, according to the Times report. It does not include $35 million from 14 smaller banks.

The article cautions that the government has yet to be paid back by insurance giant American International Group or the automakers, General Motors and Chrysler.

Source: New York Times

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