Survey: TARP driving 8.5 percent profit

babylonsister

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Mon Apr-05-10 03:08 PM
Original message

Survey: TARP driving 8.5 percent profit

http://thehill.com/blogs/on-the-money/banking-financial-institutions/90643-survey-tarp-driving-85-percent-profit

Survey: TARP driving 8.5 percent profit
By Silla Brush - 04/05/10 01:57 PM ET

The Treasury Department is booking an 8.5 percent profit on investments in bailed out banks, according to a new survey.

American Express and Goldman Sachs ranked among the top five most profitable investments for taxpayers, according to SNL Financial, a market research firm that released the survey.

The survey looked at 49 companies that have repaid money and fully exited the $700 billion financial bailout Congress passed in 2008 in the thick of the worst financial crisis since the Great Depression.

The Treasury Department said Friday the government had been repaid $181 billion from the program, and predicted that the bailout would be a net profit to taxpayers. The profits stem from early repayments, stock sales, dividends and warrants issued under the bailout.

Here are the five most profitable returns, according to SNL:

1. Centra Financial Holdings - 26.2 percent

2. First ULB Corp - 26 percent

3. American Express - 23.3 percent

4. Goldman Sachs - 20 percent

5. First Manitowoc Bancorp - 19.5 percent

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Zynx

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Mon Apr-05-10 03:36 PM
Response to Original message

1. It feels nice to be vindicated.

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girl gone mad

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Mon Apr-05-10 03:41 PM
Response to Original message

2. Where did the money come from?

Tell the truth.

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unblock

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Mon Apr-05-10 03:43 PM
Response to Original message

3. until the recover or writeoff ALL the loans, this is meaningless.

of course the profitable loans pay off first and the troubled ones take their time.
without a clear picture of the likelihood of the remaining loans paying off successfully, this sort of numbermongering is pointless and misleading.

now, given the fed's apparent determination to see this through successfully, it's entirely possible that they ALL will pay off and that the fed will make sure of it.

but in the meanwhile, this is a pointless exercise.

i've seen MANY terrible high-yield portfolios that could easily be made to look wonderful if you ignore the ones that haven't paid off yet.

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Oregone

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Mon Apr-05-10 03:43 PM
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4. So, eh, what happened to the troubled assets?

Edited on Mon Apr-05-10 03:45 PM by Oregone

:hide:

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taught_me_patience

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Mon Apr-05-10 05:04 PM
Response to Reply #4

6. Fannie, Freddie, and the FED own them now

how much have we made off our "investment" in FNM and FRE... Oh yeah... nobody wants to talk about that.

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Phx_Dem

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Mon Apr-05-10 05:39 PM
Response to Reply #4

7. They received therapy. They're no longer troubled.

:rofl:

kidding

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ClarkUSA

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Mon Apr-05-10 06:24 PM
Response to Reply #7

8. !!!

:rofl:

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taught_me_patience

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Mon Apr-05-10 05:04 PM
Response to Original message

5. Again TARP was a DIVERSION

and DUers are falling for it. The real bailout is through AIG, Fannie Mae, Freddie MAC, and the FED buying MBS at face value. Those losses will be in the hundreds of billions, if not trillions.

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Clio the Leo

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Mon Apr-05-10 06:40 PM
Response to Original message

9. Kick. NT

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