Defend Truth

US government foresees better return on Wall Street rescue

The US Treasury says it expects to recover all but $42 billion of the $370 billion it lent to ailing banks and brokerages after the October 2008 market crash. It now says the portion lent to banks actually showed a slight profit. The bank bailout has been unpopular on Wall Street and among the public since it was pushed through by the administration of former President George W Bush and Congress. The money-men reckon it’s socialism (the US government now owns large chunks of businesses on the Street), while the public paid for it in taxes and want their money back. But Treasury officials also say government lost about $30 billion in payments to keep insurance giant American International Group (AIG) afloat. The new assessment by the Obama administration of the $700 billion bailout is vastly improved from its earlier estimates that $341 billion might have been lost in the Troubled Asset Relief Programme (Tarp). However, officials say government could ultimately lose $100 billion more in new loans to banks, aid to troubled homeowners and credit to small businesses. Read more: The New York Times, Investopedia

Gallery

Please peer review 3 community comments before your comment can be posted

We would like our readers to start paying for Daily Maverick...

…but we are not going to force you to. Over 10 million users come to us each month for the news. We have not put it behind a paywall because the truth should not be a luxury.

Instead we ask our readers who can afford to contribute, even a small amount each month, to do so.

If you appreciate it and want to see us keep going then please consider contributing whatever you can.

Support Daily Maverick→
Payment options

Become a Maverick Insider

This could have been a paywall

On another site this would have been a paywall. Maverick Insider keeps our content free for all.

Become an Insider

Every seed of hope will one day sprout.

South African citizens throughout the country are standing up for our human rights. Stay informed, connected and inspired by our weekly FREE Maverick Citizen newsletter.