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.




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larryeart

Why figure the return "excluding" the losses? Including GM and Chrysler the return is $8.2 billion on $389 "investment"or......2% over two years. Hardly a market rate of return for investing in bankrupt/junk status "investments".

December 11 2012 at 4:12 PM Report abuse rate up rate down Reply
winkie

More importantly...are the re-payments being applied to the original loan???...has the TARP money gone back to the FED (minus any profit monies earned on it)????....I saw where the political arena is treating the TARP money like new found distribution funds...the United States politician has nothing on Bernie Madoff...they make him look like a piker...gesus...when will this end????....when we are back on food lines....when our annual contributions to the "government" are 80% of what we work for....(right now we are at about 50% between federal, state, county, city and borough...)...it will explode one of these days and hopefully the big boys will get burned more than anyone else...

December 11 2012 at 3:09 PM Report abuse rate up rate down Reply
dcddrum

Will I have to pay capital gains tax on that return. ha ha By the way that 8.2 % return is over 2 years ( basically 4 % a year ) I love how they try to make you feel good by playing with numbers

October 20 2010 at 5:03 PM Report abuse +1 rate up rate down Reply
quack88

So, when do we get our ROI and in what form will it be?

October 20 2010 at 3:06 PM Report abuse rate up rate down Reply