March 30, 2010

U.S. Profit on Citi Stocks!

Many have complained that the TARP bailout was just a huge series of bad investments, mad with our tax dollars, but in one area it looks like we may actually turn a profit.

The bailout money that went to Citigroup is soon to be sold by the Treasury Department in stocks of the Citi company, and the government said they will get back more than they put in on this investment.

The TARP money overall is still adding up to a loss, to be clear, mostly because of the major auto company bailots, for automakers like General Motors and Chrysler, are still big money losers, as is AIG. But in the other banking sector expenditures, perhaps there is hope we will see more turnarounds like this one with the U.S. making a profit of Citi.

U.S. Profit on Citi Stocks!

Bank bailouts are turning out to be great business for the government. Unfortunately for taxpayers, other federal rescues will almost certainly wind up in the red. The Treasury Department said Monday that it will begin selling its stake in Citigroup Inc. at a potential profit of about $7.5 billion -- not a bad haul for an 18-month investment. The move is a major step in the government's effort to unravel investments it made in banks under the $700 billion Troubled Asset Relief Program at the height of the financial crisis.
U.S. Profit on Citi Stocks!

Posted at March 30, 2010 4:20 AM