Profitable bank bailouts

There's been a whole lot of public anger about the bailouts of big Wall Street firms. But whether it was wise or not to bail out the top banks, at least it did not cost taxpayers an arm and a leg. In fact, it looks now like taxpayers got a pretty decent return on their "investment" in banks.

Fortune reports that, according to the non-partisan Congressional Budget Office, the government will ultimately make a profit of $7 billion from assisting the banks: $3 billion from the Capital Purchase Program, which amounted to preferred stock purchases; $2 billion from bailing out Citigroup (C) and another $2 billion from bailing out Bank of America (BAC).

Not all aspects of TARP have been profitable. The bailouts of AIG (AIG), GM and Chrysler still look to be underwater. CBO projects the government will lose $9 billion from AIG bailouts and $47 billion from auto industry bailouts. TARP is actually helping the budget situation. It will yield an unexpected profit of $67 billion for 2010. 

For more:
- here's the article

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