U.S. Forecasts Smaller Loss From Bailout Of Banks, page 1

posted on Dec, 7 2009 @ 11:17 AM

link

WASHINGTON — The Treasury Department expects to recover all but $42 billion of the $370 billion it has lent to ailing companies since the financial crisis began last year, with the portion lent to banks actually showing a slight profit, according to a new Treasury report.

The new assessment of the $700 billion bailout program, provided by two Treasury officials on Sunday ahead of a report to Congress on Monday, is vastly improved from the Obama administration’s estimates last summer of $341 billion in potential losses from the Troubled Asset Relief Program. That figure anticipated more financial troubles requiring intervention.

The officials said the government could ultimately lose $100 billion more from the bailout program in new loans to banks, aid to troubled homeowners and credit to small businesses.

Please visit the link provided for the complete story.

Of course, $42 billion and possibly $100 billion more later is no small change. But the figures are a lot better than a $370 billion price tag on the bailout, as was originally predicted.

It looks like the banks might even yield a slight profit.

I keep saying give the bailouts a chance to work before one pronounces them a failure. That will take at least another year, and probably more.

[edit on 7-12-2009 by Sestias]

St Udio

posted on Dec, 7 2009 @ 12:42 PM

link

Come-on-now...

the bailouts/TARP is just the slush fund portion of the scheme...

the real dollars are hidden in the FEDs secret balance sheet
the FEDs bought, swapped, lent over a Trillion$$ to all those financial
entities like banks etc, by monetizing billions of worthless financial paper
for their full face value.

the banks et al, took all that FED & TARP money to invest/speculate in stocks & commodities---after they fufilled their obligation to buy a certain % in USTreasuries

the bank's liquidity is as rock-solid as the over valued DOW stock market...
and only as long-lived as long as the FED does not 'call-in' the loans on valueless dirivatives issued by the Firms, or the MBS (mortgage Securities) sold to Freddie-&-Fannie... the banks & financial institutions are skating on thin-ice no matter the percentage of TARP paybacks the Banks are promising to send back to the Treasury.

Sestias

posted on Dec, 7 2009 @ 03:55 PM

link

reply to post by St Udio

So it's all smoke and mirrors by the fed?

lpowell0627

posted on Dec, 7 2009 @ 04:00 PM

link

How convenient that they suddenly "find" this money when they also "need" it for something else. Keep in mind that they are trying to start-up a jobs program and Obama has stipulated that everything proposed also has to show how it's going to be paid. Now we know how.

jam321

posted on Dec, 7 2009 @ 04:07 PM

link

Will the money recovered be returned so that the taxpayers aren't hit for the entire amount?

If not then the program is a failure and a fraud IMO.