“The profits, collected from eight of the biggest banks that have fully repaid their obligations to the government, come to about $4 billion, or the equivalent of about 15 percent annually.”

That profit, $4 billion dollars, comes from the Troubled Asset Relief Program, a government bailout.

“The government has taken profits of about $1.4 billion on its investment in Goldman Sachs, $1.3 billion on Morgan Stanley and $414 million on American Express. The five other banks that repaid the government — Northern Trust, Bank of New York Mellon, State Street, U.S. Bancorp and BB&T — each brought in $100 million to $334 million in profit.”

Critics have been screaming that taxpayers might not see any profits, and that it could take years for the banks to repay the loans. OPS! The naysayers were wrong again.

The program isn’t a year old and turning a profit. In fairness, the program has a long ways to go before the taxpayer is paid off completely.

But, in the meantime, can we celebrate the good news? Your government is doing something right and making a 15% return on it’s investment.

Advertisements