CNNMoney: Taxpayers Still Owed More Than $200 Billion From Bailouts

Tuesday, 11 Sep 2012 05:23 PM

By John Morgan

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Some of the big corporate bailouts by taxpayers from 2008, which so angered many Americans, have actually ended in a profit for the federal government. But there is more than $200 billion still owed and outstanding.

The government will probably lose money on the bailouts of automakers General Motors and Chrysler, according to Treasury figures cited by CNNMoney.

GM received $51 billion in bailout funds and repaid about $24 billion so far.

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.

But GM shares would need to rise to almost $57 a share from its current price of just over $23 for taxpayers to be made whole – a tall order.

Meanwhile, some of the government monies paid out to Chrysler Group has already been written off. Chrysler, now controlled by Italian automaker Fiat, left a tab of $1.3 billion for U.S. taxpayers to pay off from its total infusion of $12.4 billion.

Another auto-related recipient, auto and home finance firm Ally Financial (formerly GMAC), received $16.3 billion but has only paid $5.7 billion back to date. Ally may not be able to pay the difference without a successful IPO.

But not all is gloomy on the government bailout front. Treasury reported the American International Group (AIG) rescue has already turned a profit of $12.4 billion for taxpayers.

“To stabilize and then restructure the company with a very substantial positive gain for the American taxpayer is a significant accomplishment,” Treasury Secretary Tim Geithner said in a prepared statement.

Treasury records show the Troubled Asset Relief Program (TARP) for “too big to fail” institutions such as Citigroup, Bank of America and Goldman Sachs turned a $25 billion profit. But about $14.8 billion is still owed by nearly 400 smaller banks.

Finally, the biggest recipients of taxpayer largesse – mortgage finance giants Fannie Mae and Freddie Mac – are still a large black cloud over taxpayers.

They received about $187.5 billion, but have only paid back $70.7 billion in dividends and profit.

Treasury estimated more than $10 billion is also yet to be prepaid from smaller TARP programs.

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved