Posted on 09/25/2009 7:59:44 PM PDT by Lorianne
It's 'extremely unlikely' that taxpayers will see a full return on their investment, Neil Barofsky, special inspector general for the Troubled Asset Relief Program, tells the Senate Banking Committee.
Reporting from Washington - The Treasury is unlikely to get back the full amount of money lent under the Troubled Asset Relief Program despite a recent spate of repayments from large banks, warned the program's watchdog.
The program "played a significant role" in rescuing the financial system from a meltdown, Neil Barofsky, special inspector general for TARP, testified before the Senate Banking Committee on Thursday. But it was "extremely unlikely that the taxpayer will see a full return on its TARP investment," according to his prepared testimony.
Losing some money was almost inevitable, said William Goetzmann, a finance professor at the Yale School of Management.
"The intent of TARP investment was not that it was a great investment for the U.S. taxpayer," Goetzmann said. "The intent was to save the U.S. financial system, and that was going to cost some money."
He said he expected to see differences in repayment emerge among banks of different sizes. Larger banks such as Goldman Sachs, which returned $10 billion in TARP money in July, are all likely to pay back the money fairly soon, but Goetzmann warned that many smaller banks may end up defaulting on their obligations.
When interest and other payments are added in, Goldman Sachs' TARP loan netted the government a 23% annualized return on its investment.
Barofsky cautioned that massive returns were the exception, not the norm, noting that TARP included a $50-billion foreclosure prevention program that would yield "no direct return" for taxpayers.
(Excerpt) Read more at latimes.com ...
Please raise your hand if did NOT see this coming.
YA THINK?!
This means I will already be in jail and getting injections...
before, Obama tells me i MUST!!
23% annualized ROI only because of the dividend schedule and quick payment. As if US Bancorp ever needed bailout money in the first place! All those who could pay back quickly did pay back quickly. AIG and Citi are finagling out of their interest payments and the billions in GM disappeared.
23% ROI when you only count realized gains and you sweep unrealized losses under the rug. When I grow up I want to be a government accountant!
Will there EVER be an investigation into what Congressman Kanjorski’s C-Span interview alluded to when he spoke about the 5.5 billion that was mysteriously taken out of the markets all at once in September of 2008 that prompted Bush’s initial TARP (to save the economy when he thought there was a run on the banks)?
Why does NO media outlet (including Fox) mention this????
Is ANYONE interested in finding out who (see tagline) was behind it???
The Brits had a bite outta this crumpet before, right?
I am shocked!
So ya mean that making huge loans to uncreditworthy ventures is risky ?
The list, ping
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