It’s a total shiite sandwich! I have real doubts about the Tarp paid back/successful canard and prefer to see more of the data and analysis. A bit more useful information about TARP available from the from the Congressional TARP oversight meeting March, 2011, from the transcript:
“In a recent paper, professors in Dallas and a co-author estimated that the CPP program, along with the FDIC’s Temporary Liquidity Guarantee Program, increased the value of banks participating in these two programs by approximately $130 billion, of which 40 billion represented a direct taxpayer subsidy to banks.
On the other hand, the political deals required to get TARP passed with an estimated 150 billion in largely unjustified and unjustifiable tax breaks, do not speak well for our democracy.
I estimated that the capital purchase program increased the value of banks debt by $120 billion at a cost of $32 billion for the taxpayers. Though in spite of the enormous value created by the government intervention, taxpayers ended up with a large loss.
TARP was the largest welfare program for corporations and their investors ever created in the history of humankind.
And some of the crumbs (ph) have been donated to the Auto Workers Unions doesn’t make it any better. It makes it worse. It shows that this redistribution was no accident. It was a premeditated pillage of defenseless taxpayers by powerful lobbyists. TARP is not just a triumph of Wall Street over Main Street, it is the triumph of K- Street over the rest of America.
These are exactly the issues you discussed with the previous panel in terms of additional losses coming through from major lawsuits and various kinds of put backs and so on. We don’t know how much capital they’re going to need to weather the next stage of the global cycle. And the Federal Reserve has not yet determined that, so why would you allow them to pay out any of this capital as dividends?
This is just reducing their equity and allowing them to have more leverage in their business. The bankers, again, want it, because they get paid on a return on equity basis. This is just letting them leverage up, and there’s a put option. We write the put option. We bear the cost of that.
You’re increasing the put option, which is not scored in anyone’s budget, by allowing them to pay these dividends. It’s unconscionable. It’s irresponsible. And the Federal Reserve should back off from allowing this increase in dividends, which is apparently where they are currently headed....”
The bank portion is profitable.
http://www.freerepublic.com/focus/f-news/2697359/posts
The auto, Fannie & Freddie and mortgage giveaways will lose money.