US Government closes last big Wall Street Bailout last night

[KevinNYC]

The U.S. Treasury sold its remaining shares of Ally Financial last night and this morning, cutting the last financial cord from the auto industry bailout following the 2008 financial crisis.

The Treasury, which provided $17.2 billion in emergency assistance to Ally, once owned 74% of the Detroit-based financial giant, which now is focused on auto financing to dealers and consumers, and to commercial and online banking. Between yesterday and this morning the government sold its last 54.9 million Ally shares.

Treasury Secretary Jack Lew said the government recovered $19.6 billion on its aid to Ally.

Damn, they actually turned a 2.4 billion profit on Ally. (http://www.freep.com/story/money/cars/2014/12/19/government-exits-ally/20631027/) Ally is the old GM financing company were really looking like a dog the last time I looked.

Pro Publica has not updated their database yet. (http://projects.propublica.org/bailout/list)

[KevinNYC]

There's still a bunch of smaller banks that have yet to repay money, but this was the last big and overall the Treasury Department is up 15 billion on the whole Tarp effort.


For the entire TARP effort, the government disbursed about $426.4 billion and recovered $441.7 billion, according to Tim Bowler, deputy assistant secretary for financial stability.

There are about 35 community banks that received funds from TARP but haven't yet fully repaid their emergency funding, Bowler said.

Treasury was able to sell the shares on one of the stock market's best days this year. Bowler said the final shares were sold at $23.25. Ally shares traded at $23.72 shortly after the opening bell This morning.

[KevinNYC]

Pro Publica has the government up $46.3B if you include the Fannie and Freddie bailouts.

OUTFLOWS: $613 billion
This includes money that has actually been spent, invested, or loaned.
Banks and other Financial Institutions................................$245B
Fannie and Freddie........................................... ..............$187B
Auto Companies......................................... ....................$79.7B
AIG .................................................. ...........................$67.8B
Toxic Asset Purchases .................................................. $18.6B
Other .................................................. ......................$13.8B


INFLOWS: $659 billion
Money returned and paid to Treasury as interest, dividends, fees or to repurchase their stock warrants.

Refunded .................................................. ......................$388B
Revenues.......................................... .............. ................$271B
Profit............................................ ..................................$46.3B ..............(7.5% of outflows)

[TheGreatDeraj]

For the love of God I hope they could turn a profit after being gifted tens of billions of dollars at the taxpayers expense.

The disturbing truth is that the taxpayers bailed these banks out after having their homes and billions of dollars stolen from them.

And the worst part is nothing was fixed and the banks got BIGGER.

The rich have gotten richer since they destroyed the economy in 2008, but what about the rest of us? Over 50% of Americans now recieve government benefits.

But I'm so glad the banks are turning a few billion dollars in profit. That's great.

We will have to see what happens when the $50 trillion derivative market crashes.

[KevinNYC]

For the love of God I hope they could turn a profit after being gifted tens of billions of dollars at the taxpayers expense.

The disturbing truth is that the taxpayers bailed these banks out after having their homes and billions of dollars stolen from them.

And the worst parest is nothing was fixed and the banks got BIGGER.

The rich have gotten richer since they destroyed the economy in 2008, but what about the rest of us? Over 50% of Americans now recieve government benefits.

But I'm so glad the banks are turning a few billion dollars in profit. That's great.

We will have to see what happens when the $50 trillion derivative market crashes.didn't read it did you?

[ALBballer]

They made a few billions but are still down 16 trillion or so.

Cool story bro!

[KevinNYC]

They made a few billions but are still down 16 trillion or so.

Cool story bro!

I guess if you want to be pissed off, you'll find a way.

[KyrieTheFuture]

I...wait. People are complaining about the government making money? People are upset that a government initiative to save the economy, worked? People are mad because they want to be not because they have cause to be (in this thread at least)

[KevinNYC]

I...wait. People are complaining about the government making money? People are upset that a government initiative to save the economy, worked? People are mad because they want to be not because they have cause to be (in this thread at least)

Yes, had something not stopped the financial crisis the economy and the debt would be much, much worse today. TARP was the thing that finally stopped the crisis from spreading.







And, hey, on top of that it turned a profit.

[christian1923]

Good job Obama:applause:

[KevinNYC]

Good job Obama:applause: TARP started under Bush.

I think Paulson and Bernanke actually deserve some kudos on this.

[DCL]

it's hard to lose when you have guaranteed assistance to prop up the markets. :lol

[KevinNYC]

Pro Publica has the government up $46.3B if you include the Fannie and Freddie bailouts.

OUTFLOWS: $613 billion
This includes money that has actually been spent, invested, or loaned.
Banks and other Financial Institutions................................$245B
Fannie and Freddie........................................... ..............$187B
Auto Companies......................................... ....................$79.7B
AIG .................................................. ...........................$67.8B
Toxic Asset Purchases .................................................. $18.6B
Other .................................................. ......................$13.8B


INFLOWS: $659 billion
Money returned and paid to Treasury as interest, dividends, fees or to repurchase their stock warrants.

Refunded .................................................. ......................$388B
Revenues.......................................... .............. ................$271B
Profit............................................ ..................................$46.3B ..............(7.5% of outflows)
ProPublica has updated the TARP tracker. The government has made a 54 billion dollar profit.


Altogether, accounting for both the TARP and the Fannie and Freddie bailout, $613B has gone out the door—invested, loaned, or paid out—while $390B has been returned.

The Treasury has been earning a return on most of the money invested or loaned. So far, it has earned $278B. When those revenues are taken into account, the government has realized a $53.8B profit as of Jan. 2, 2015.

[fiddy]

The media’s inscrutable brush-off of the Government Accounting Office’s recently released audit of the Federal Reserve has raised many questions about the Fed’s goings-on since the financial crisis began in 2008.

The audit of the Fed’s emergency lending programs was scarcely reported by mainstream media – albeit the results are undoubtedly newsworthy. It is the first audit of the Fed in United States history since its beginnings in 1913. The findings verify that over $16 trillion was allocated to corporations and banks internationally, purportedly for “financial assistance” during and after the 2008 fiscal crisis.



http://www.forbes.com/sites/traceygreenstein/2011/09/20/the-feds-16-trillion-bailouts-under-reported/

You mean to tell me that the U.S. government managed to recover all of that?


They made a few billions but are still down 16 trillion or so.

Cool story bro!
18+

[sundizz]

Poor minded people are always going to be thinking like that.

Rich minded people understand the innate need for proper infrastructure, whether it be a secure financial trading platform, or a constant supply of energy.

People nowadays take so much for granted - clean water, shelter, food, medical care, energy, roads, sanitation, etc.

I am unemployed (2015 is a gap year for me between the end of grad school in December and my job offer for Jan 2016).

I filed out the Obamacare stuff - got free health insurance for the upcoming year. That's awesome - and in 2016 when I am employed I'll happily pay it back to the infrastructure through the form of taxes.

[KevinNYC]

[QUOTE=fiddy][B]The findings verify that over $16 trillion was allocated to corporations and banks internationally, purportedly for

[gigantes]

there was never much choice about doing TARP, far as i understand... just a matter of pushing it through the ranks of the dogmatically irrational.

IIRC obama had a lot of cachet at the time and significantly helped to sway congress even though bush jr was still technically prez.

one thing i'm very unclear on is what the west does if china (in particular) begins to crash. from what i've read there are some artificial (or long-term unfeasible) measures making their economy go, but that it's an ever-precarious limb they are shimmying out on. also, atmospheric pollution alone is steamrolling them in many ways and they seem too disorganised and committed to their factory-economy to slow it down much. point is-- world markets do not like them or anyone else crashing, not to mention they're the world's manufacturing center. yikes.

[KevinNYC]

there was never much choice about doing TARP, far as i understand... just a matter of pushing it through the ranks of the dogmatically irrational.

IIRC obama had a lot of cachet at the time and significantly helped to sway congress even though bush jr was still technically prez.

Well what ever cachet Obama had. The House voted it down the first time. The Come to Jesus Moment happened that very same day.

House Rejects Bailout Package, 228-205; Stocks Plunge

http://2.bp.blogspot.com/_oTwEGiup_Wo/SOI12T7klrI/AAAAAAAAD3g/j6kPcf10eq0/s1600/nyt_930_crash.png

http://www.ritholtz.com/blog/wp-content/uploads/2008/09/crash_wsj.png

http://www.ritholtz.com/blog/wp-content/uploads/2008/09/lli.jpg

House to Wall Street: Drop dead

The Dow finished the day down nearly 780 points, the largest closing point drop in history.


McCain also supported the TARP bill. Just came across this amusing recap by Henry Paulson. (http://www.wsj.com/articles/SB10001424052748704022804575041280125257648)

[gigantes]

jesus... like frodo and gollum struggling for the ring while toppling in to doom's furnace.


obama was hot stuff at the time. i remember at least two reports that he was quite active (even forceful) phoning MC's in support. i remember thinking-- "well, this is a nice assertive start from him. could this really be clinton, mark II?"

i'm no good at this stuff, but:

Cummings and Edwards said they had received calls from Democratic presidential nominee Barack Obama, encouraging them to change their minds. They said they received assurances that he was committed to the bankruptcy provision.

http://money.cnn.com/2008/10/03/news/economy/house_friday_bailout/