TARP Repayments Surpass Loans

[kpete]

Source: Wall Street Journal

By DARRELL A. HUGHES

WASHINGTON—The Treasury Department on Friday said the money repaid to taxpayers for government funds used to bail out U.S. companies has for the first time surpassed the amount of loans.

The Treasury, in its May report to Congress on the Troubled Asset Relief Program, said TARP repayments reached $194 billion, $4 billion more than the outstanding debt of $190 billion.

In a statement, the Treasury's assistant secretary for financial stability, Herb Allison, described this as a milestone and said it is "further evidence that TARP is achieving its intended objectives: stabilizing our financial system and laying the groundwork for economic recovery."

The benchmark was reached in May when the Treasury completed its sale of 1.5 billion shares of Citigroup Inc., "a transaction that provided gross proceeds of $6.18 billion to taxpayers," the Treasury said.

Read more: http://online.wsj.com/article/SB10001424052748703509404575300502253092016.html

[Nicholas D Wolfwood]

1. Can it really be called a bailout at this point? (nt)

[wellst0nev0ter]

2. Yep.

Especially if they get no-interest government loans, loan the same money with jacked up interest, then "pay back" the money using that method, thereby literally printing their own money.

[Nicholas D Wolfwood]

4. Uhm, can't be "no interest" if the amount paid back exceeds the amount borrowed.

But thanks for playing.

[liberation]

5. So you were not asking a question then... :-)

I believe the tarp funds were issued as very low interest loans (from the figures seem to be at around 2% interest) and from buying outstanding shares, which are now being sold at market price. And since the markets went up... ergo the appreciation. So technically not all comes from interest.

[Nicholas D Wolfwood]

7. No, I really wasn't asking the question. It was rhetorical. (nt)

[liberation]

8. Oh, snap...

[wellst0nev0ter]

11. That's Only Assuming TARP Was The Only Bailout They Got

Learn to dig a little deeper.

[Igel]

13. That would be the case.

But it isn't.

The article clearly says that $194 billion has been repaid, but that $190 billion is still outstanding. In other words, what is being said is that over 1/2 of the amount actually loaned out has been repaid.

Woo-hoo!

It continues to say that over $100 billion as been allocated but not paid out yet as a loan, making the total potential outstanding loans over $296 billion.

Note that the loans were borrowed money so that we're paying interest on the money loaned out. I'd say that we're not fully repaid until we've paid back that portion of the debt, reimbursed for any interest we've incurred.

Of course, that won't happen. They money that was loaned out and is repaid, by the cash-and-carry method that the US government uses, is revenues. The loan contributed to the deficit when it was paid out; when the loaned-out money is repaid it reduces the deficit. But since we have already paid the political price for a budget deficit of a certain amount, it means there's free money for other spending. Or for reducing the deficit and receiving unearned political accolades.

[liberation]

3. TARP wasn't actually the bailout

These 190 billion are separate from the almost 2 trillion pumped by congress and the fed (half and half)

[SILVER__FOX52]

6. Ya, see, now you went and shown the

light on ignorance. That's not America. Keep'em stupid.

[soryang]

9. This is Wall Street bailout propaganda

General Motors still owes over 40 billion. That government loan was converted to worthless stock. AIG still owes well in excess of 100 billion. I'm sure an examination of Citibank loans will reveal further loan obligations abandoned by the government for equity so they could claim "the loans have been repaid." No wonder we are in such fiscal and economic trouble, people can't count.

[BobbyBoring]

10. Here here!

The total of the "Loans" is somewhere in the hood of 14 TRILLION, not 900 Billion. They got 800 B in 08 alone before Obama jumped on the bail out band wagon.

[aquart]

12. And what about punitive damages?

I love that these greedy thieves want me to be impressed by their diligent honesty and financial probity.