Bail-Out Profits

In the midst of the financial crisis of 2008 Congress approved the Troubled Assets Relief Program (TARP) and authorized up to $700 billion in money to shore up the banking system.  Of that amount only $411 billion was spend on financial firms, auto makers and in programs to reduce foreclosures.  As of June 7, $308 billion has been paid back to the government.  The remainder has an estimated value of $130 billion.  If the outstanding balance is repaid at this rate the Treasury will reap a small profit from TARP.  The biggest loss of this program will be the monies loaned to Freddie Mac and Fannie Mae.  (Source: The Economist, June 11, 2011, page 77)