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TARP Profitable - Really? Do You Believe That?

By
Real Estate Agent with Real Estate Teams LLC

Your Distressed Property and Short Sale Expert in Maryland

Don't!

Although the bank portion of TARP has made a small profit, as most banks are repaying their bail-out funds, others portions have not.
$245 Billion out and $251 Billion back.

However:
The auto companies and AIG took lots of funds too.

GM paid back the $6.7 Billion directily lent to it, but total funds, including stock purchases, were at least $50 billion from the Treasury.
AIG took $182 billion, which is now mostly converted to AIG common stock - hopefully it will maintain it's value.

In total $564 Billion was loaned, and $250 Billion has been paid back, with $251 Billion still due the Treasury. There has been $57 Billion in dividends, interest, and fees, etc. paid to Treasury.

Fannie Mae and Freddie Mac, who received most of the "toxic assets" from banks are the big losers, probably $250 Billion - at least.
They have been given $154 Billion, paid nothing back, but have sent $20 Billion in dividends.

So, from the nearly $1 Trillion paid out under TARP and related programs, not all that much has come back - much less than half!

Do you think TARP will actually turn a profit in the next few years?
Do you think Treasury is playing shenanigans?
Will GM be able to maintain it's momentum and keeps it's stock value up?

Dennis
www.Frederick-MontgomeryCountyHomes.com
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