Obama did something no other president has
done. When he bailed out businesses, he didn’t’ give our tax dollars away
instead it was loans or a purchase of assets. As part of the Troubled Asset
Relief Program (TARP), General Motors (GM) received $50.7 billion. Per
Kgbanswers.com - As of September 2012 GM is still indebted to the US Government
for $27.2 billion and the government holds an approximate 26% stake in the
equity of GM. Chrysler, on the other hand, repaid all of it TARP loans in May
2011 and they were not due until 2017. A current report issued to Congress
showed that if the government were to sell its position in GM, it would be at a
loss of $25.1 billion to the American taxpayer; however GM also has until 2017
to pay off its loan so it’s undecided if the government will lose money overall
on the auto industry bailout. The government disbursed $245 billion to the
banks and received principal repayments of $230 billion and interest payments
of $34 billion for a total of $264 billion subsequently making money on the
bank bailout.
Per a September 11 MoneyCNN
report the Treasury still holds about 500 million shares of GM, worth about
$11.5 billion at current prices and those shares would have had to rise to
almost $57 from its current price of $23.14 in order for taxpayers to break
even. The Treasury sold $20.7 billion worth of American International Group (AIG)
stock,
cut its stake in the company to 15.9% from 53%, and counting the TARP and Fed
bailouts together, the AIG bailout has already turned a $15.1 billion profit
for taxpayers and when it sells off its remaining stake will make more of a
profit for taxpayers. But about $14.8 billion is still owed by nearly 400
smaller banks that received TARP help. Only 3 banks still owe taxpayers more
than a half-billion dollars (Synovus Financial of Columbus, Georgia,
Popular of Puerto Rico and Zions Bancorporation of Salt
Lake City, Utah). The Treasury has written off
losses of about $2.8 billion in other TARP money given to smaller banks and
financial firms, with most of that -- $2.3 billion -- due to the CIT
Group bankruptcy.
Outside of TARP, billions were given to mortgage finance firms Fannie Mae and
Freddie Mac; the Treasury received $45.7 billion in dividends from the firms
and made an estimated $25 billion profit on the sale of mortgage-backed
securities during the last year;
it is also due to receive all future profits from the two firms. The other
financial firm with significant bailout funds still at risk is Ally
Financial,
formerly GMAC. The bank, auto and home finance firm was rescued as part of the
auto bailout since it was a major source of financing for many of the nation's
auto dealers. Ally received $16.3 billion and has only paid $5.7 billion back
to Treasury, primarily in dividend payments. The Treasury owns 74% of its stock
but won't be able to cash out until Ally has an initial public offering. The Treasury
estimates there's another $10 billion yet to be repaid from a number of other
smaller programs that fall under the TARP umbrella.
Contrary to what the
Republicans want you to believe, the government is recouping much of the taxpayer
dollars.
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