Treasury Estimates Profit of $23.6 Billion on Bailouts

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By dpsimswm


According to a March 2011 Treasury report, the total profit/loss for all the financial bailouts combined should net taxpayers a profit of $23.6 Billion. This includes the TARP, Fed and Treasury purchases of distressed assets, the AIG bailout, and Fannie Mae and Freddie Mac.

Regarding Fannie Mae and Freddie Mac, investors should note that the Asset Purchase Programs netted taxpayers profits of at least $72.465 Billion through GSE Mortgage Backed Securities and GSE Debt. These securities have been guaranteed by a combination of shareholder and taxpayer money in the equity of the mortgage giants.

The $73 Billion cost of the Fannie and Freddie Bailout is nearly half of the cash payments that these companies have received thus far (about $130 billion). It is unclear whether the government plans to sell their stake in these companies.

$23.6 Billion Profit for Taxpayers
See all 2 photos
$23.6 Billion Profit for Taxpayers
Source: Treasury.gov
Federal Reserves profits from Asset Purchases.
Federal Reserves profits from Asset Purchases.
Source: Treasury.gov

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