That and all the GM stock the government holds, which it will never be able to sell for enough to break even on the bailout to GM.
Yes.
In reality, most of the TARP funds were squandered and lost.
What do you mean "most"?
Other TARP expenditures also lost money (a lot of money), in spite of claims that they "turned a profit."
The Treasury sold the preferred stock back to the banks and some of the warrants to the public. They've gotten back more money, in total, than they invested in the bank stock.
The aleged profits are usually smoke and mirrors and accounting trickery when you start digging into the claims that the government "made money" on the deal.
Please show me the results of your "digging".
It's been a while since I looked into the fiasco that was TARP. Instead of continuing to demonstrate my possibly faulty memory and possible lack of understanding, let me ask you two some questions so you can enlighten me.
First, Tell me if my understanding of this is correct.
When the bill passed and became Public Law 110-343, some funds ($250 billion IIRC) were made available to the treasury secretary. This money was authorized to be spent and put into a "TARP fund" for the secretary to use.
Eventually, the TAPR fund grew, first to $350 billion, then ultimately to $700 billion.
Paulson used some of this money to buy preferred shares in the banks. Other amounts were used to bail out the auto makers, and for other purposes.
My question is this, after the banks bought back their preferred stock, "returning the money plus interest," did their repayments go to the general treasury? Or did those payments go back into the "TARP fund" where the treasury secretary could use them to buy additional "troubled assets?"
My understanding is that once authorized, those funds are available to any future treasury secretary to spend on anything he/she determines is a "troubled asset." So, when the banks "paid back" their loans/bought back their preferred stock, that money is now in an account that is already authorized to be spent.
So if Geithner and Obama want to call Solydnra or Evergreen Solar a "troubled asset," can they use this money to buy those bankrupt "green energy" companies.
Was the authorization ever revoked? Did the TARP fund have an expiration date? Have these funds been returned to the treasury? Or do Geithner and Obama now have a $700 billion slush fund to spend however they want?
Until that money is de-authorized, de-allocated and returned to the treasury general fund, we have no idea whether the taxpayers "made a profit" or not. We don't know how much was spent or wasted, because it's still available to be spent again.