US government foresees better return on Wall Street rescue

By Incorrect Author 7 December 2009

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

Corruption, Inc

Thulas Nxesi: State Capture forces resist the clean up at Public Works

By Marianne Merten

Op-Ed

Inequality in South Africa: Beyond the 1%

Fazila Farouk and Murray Leibbrandt 11 hours ago

Riding a Black Unicorn Down the Side of an Erupting Volcano While Drinking from a Chalice Filled with the Laughter of Small Children is the title of a dark cabaret album by 'Voltaire'

0