Bailout Rate of Return: -1,096%

Time magazine looks at the TARP, and does some quick number crunching.

Since the Tarp was jammed through in October, Treasury has invested $165 billion into the nation’s eight largest banks.

Those same financial firms are now worth $418 billion less than they were four months ago. CBO calculates the taxpayer’s preferred shares are worth $20 billion less.

The government’s annualized rate of return on its investment in the nation’s largest banks is -1,096%.

As Time snarkily notes, even Bernie Madoff only lost 100%!

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Source:
Why Your Bank Is Broke
Stephen Gandel
Time, Jan. 29, 2009
http://www.time.com/time/business/article/0,8599,1874702,00.html

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