TARP Investment Earned Taxpayers 8.2% in Two Years
by
Oct 20th 2010 7:04AM
Updated Oct 20th 2010 8:10AM
The TARP bailout of financial firms has yielded a return of 8.2% in two years.
This return, $25.2 billion on an investment of $309 billion, beats what could have been gained by U.S. Treasuries, high-yield savings accounts and certificates of deposit, Bloomberg News reported.
When it was first announced, the TARP program was expected to cost the taxpayer billions of dollars. It is still expected to make a loss overall, but the money ploughed into the banks and insurance companies has been unexpectedly profitable.
"From the perspective of the taxpayers getting their money back, TARP has been a great success," Todd Petzel, chief investment officer at New York-based Offit Capital Advisors LLC told Bloomberg News.
The government's investment in automakers General Motors Co. and Chrysler LLC has been less successful. The government expects to lose about $17 billion on its $80 billion investment.
This return, $25.2 billion on an investment of $309 billion, beats what could have been gained by U.S. Treasuries, high-yield savings accounts and certificates of deposit, Bloomberg News reported.
"From the perspective of the taxpayers getting their money back, TARP has been a great success," Todd Petzel, chief investment officer at New York-based Offit Capital Advisors LLC told Bloomberg News.
The government's investment in automakers General Motors Co. and Chrysler LLC has been less successful. The government expects to lose about $17 billion on its $80 billion investment.
4 Comments