According to the media, who you can trust not to spin things in favor of Obama or leftism in general, the federal government is making some major bank of the TARP loans. CNBC, which is owned by General Electric, which is owned by the Obama Administration, reports:
The Federal Reserve has made $14 billion in profits on loans made in the last two years, the Financial Times reported on Monday, citing officials close to the matter.
The U.S. central bank also earned about $19 billion from interest and fees charged to institutions that tapped liquidity facilities during the global financial crisis, the report said.
If the Fed had invested the same amounted loaned out in three-month Treasury bills since August 2007, it would have earned $5 billion in interest, the FT said.
That’s some good return. Too bad that not all there is to know about the loans. Behold, nuance:
The inspector general in charge of overseeing the Treasury Department’s bank-bailout program says the massive endeavor could end up costing taxpayers almost $24 trillion in a worst-case scenario. That’s more than six times President Obama’s proposed $3.55 trillion budget for 2010.
Much of the bailout’s attention has focused on the Treasury’s $700 billion Troubled Asset Relief Program, or TARP, which Congress hurriedly passed last fall. But about 50 other federal programs that began as early as 2007 could push the government’s total financial support of the private financial sector to at least $23.7 trillion, says TARP Special Inspector General Neil Barofsky.
The estimate – which the Treasury strongly disputes – was included in Mr. Barofsky’s second-quarter review of TARP on Monday.
"TARP does not function in a vacuum, but is rather part of the broader government efforts to stabilize the financial system," said Mr. Barofsky in a statement ahead of his appearance Tuesday before the House Oversight and Government Reform Committee to discuss his report.
Extra costs include $2.3 trillion in programs offered by the Federal Deposit Insurance Corp. (FDIC), $7.4 trillion in TARP and other aid from the Treasury, and $7.2 trillion in federal money to support Fannie Mae, Freddie Mac, credit unions, Veterans Affairs and other federal guarantee programs, he said.
The committee’s top Republican, Rep. Darrell Issa of California, said the size and scope of the government’s involvement in rescuing the struggling financial sector has reached a mind-boggling level.
Tell me when the loans bring in tens of trillions of dollars in returns. Then, I’ll be impressed.