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General Category >> Politics, Religion (Tall Table) >> AIG Bailout profit for U.S. Treasury
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Message started by Jerry Eichenberger on 12/14/12 at 09:08:42

Title: AIG Bailout profit for U.S. Treasury
Post by Jerry Eichenberger on 12/14/12 at 09:08:42

For those who still mistakenly believe that the Troubled Asset Relief Program, begun under GWB in 2008, and continued by the Obama administration, to rescue large financial companies, you may be interested to note that today the Treasury sold the last of its common stock in AIG, earning a total profit of $22.7 Billion (yes, Billion with a B) on the money it lent ( not gave ) to AIG back in 2008.

The gov't now owns no more stock in AIG, earned a handsome return for the taxpayers, and saved a financial powerhouse. That's how gov't should operate.

Of all of the TARP loans, to all companies, over 90% has now been repaid with either interest earnings, or profits on the resale of stock in those companies where the Treasury took stock.

So, please correct your neighbors, friends, family; whomever if they still think the "bailouts" were give aways of taxpayer funds.

Title: Re: AIG Bailout profit for U.S. Treasury
Post by Serowbot on 12/14/12 at 09:46:52

Sometimes gov'nt works... ;)...
Changes made to the student loan system seems a good idea, too...

Nice to see some practical solutions...

Title: Re: AIG Bailout profit for U.S. Treasury
Post by Paraquat on 12/14/12 at 11:08:52

When I reap the benefits I will believe it.

--Steve

Title: Re: AIG Bailout profit for U.S. Treasury
Post by LostArtist on 12/14/12 at 16:13:49

the problem is, and I could be wrong here, I thought that the TARP program was put in place as a slush fund, so it's like the government used our tax money to start up a capital investor kind of thing, so there's always this $800 billion dollar fund to bail out banks, etc. . . It's still not really how a free market/capitalist economy is supposed to work. the government is still picking winners and losers in a sense. idk, thinking about this too much makes my brain want to punch my eyeballs

I hope I'm wrong in one sense, but in the other sense, I'm not sure I care, it's way way too exhausting trying to re-think/out-think what the government is doing, I need to keep focus on my little life and vote for what at that moment makes sense to me.

Title: Re: AIG Bailout profit for U.S. Treasury
Post by srinath on 12/14/12 at 20:19:05

Slow down there kiddies ... profit ... yes, but only at the increased reduction of regulations.

Yes we are making $$$ but those that have savings and investments that include the clients of AIG, and you would be surprised how many there are, including goldman sachs ... you are exposed to risk that you were not.

This is beyond bogus, and it has been set in motion by Bush and Obama kept it rolling ...

Cool.
Srinath.

Title: Re: AIG Bailout profit for U.S. Treasury
Post by Midnightrider on 12/16/12 at 17:19:28

I dont think anyone but me has looked at the Federal Reserve audit. These banks were given billions (yes kiddies with a B) behind our backs! They'll never have to pay back what they were really given. Jerry God only knows I wish you were right but God only knows whats going on behind our backs! http://theintelhub.com/2012/10/27/cnbc-execs-children-murdered-1-day-after-cnbc-reports-43-trillion-bankster-lawsuit/

Title: Re: AIG Bailout profit for U.S. Treasury
Post by justin_o_guy2 on 12/27/12 at 07:56:26

Keep sniffin out the lies, Rider.

Title: Re: AIG Bailout profit for U.S. Treasury
Post by v-pilot on 12/29/12 at 21:05:16

IF it's true...what kind of capital gains tax did they pay?...jus wonderin' :-/

Oh...wait...it's the Gubbamint...none :-[

Title: Re: AIG Bailout profit for U.S. Treasury
Post by Pine on 01/02/13 at 09:15:40

Interesting OP(orginial post). At face value, yes we bought stock and then shold it all back (at profit!)... but I am NOT inclined to agree that what was done and what resulted, was more to my benefit than not.

This gets over my head pretty quick... but I will try explain my position:

The goverment used tax dollars.. meaning money was taken out of the economy to buy stocks of certain entities. Had that money been left IN the economy then collectively, all people could have made the decision to ( or not ) buy those stocks. Instead we were robbed of that possiblity. With inflation, there should have been a rise in interest rates. But this has been supressed. I was actually hoping for a such a rise, and saving my money so that like in 1981, I could lock in those 18% CD rates. How much money has been lost to the masses because the governement and the banks colluded (sp) to keep any deals "in-house"?? 22 Billion would have been a drop in the bucket.

My point is, that while I cannot disagree that the plan worked as intended, I can disagree that I am better of for it.

Title: Re: AIG Bailout profit for U.S. Treasury
Post by Jerry Eichenberger on 01/02/13 at 09:29:57

Pine -

Unfotunately, your facts are off a little.

Loans were made to AIG, GM, Chrylser, and many banks. These loans carried interest like any loan does. Almost all of the lent money has been repaid, often early, with the interest.

The stocks that the gov't got were an added bonus to the taxpayers. The profit that the gov't made on the sale of that stock was in addition to the interest that was paid on the loans.

My sole point was to correct those few who thought that the 2008 and 2009 "bailouts" were gifts from the gov't to the ailing companies. They were clearly not. In fact, the gov't got a double return - interest on the loans, and profits from the sale of the stocks, in addition to getting the principal repaid.

The gov't never bought the stocks - they were an additional bonus.

As I think most people know, this program was begun, and designed, at the end of GWB's presidency. It was Republicans who engineered this double return for the taxpayers. Obama was wise enough to continue the program after he took office. Of course, Obama is now getting the credit, but that's politics.

Title: Re: AIG Bailout profit for U.S. Treasury
Post by srinath on 01/02/13 at 11:26:02

No, I dont think it is profit ... why ?

They changed the rules, especially mark to market.
They made profit and paid off the loans from the govt, but are operating under a bigger risk situation. AKA, they have robbed peter to pay paul, and screwed mary in the process.

Or, they have postponed the day opf reckoning, got deposits from people and made themselves look more profitable and paid off the govt, so they can now pay their executives back the way the they were in 2002-2008 and screw the people when it comes time to face up to the music.

They had to have sold houses for the current market value, or listed them as assets in their balance sheets with market value instead of the "mark to fantasy" they had been doing.

Cool.
Srinath.