Monday, December 7, 2009

Treasury's TARP Losses

Treasury's TARP investments resulted in gains and losses. The NYT reported on big losers:

Chrysler and GM-roughly $30 billion combined
AIG-another $30 billion

In other words, the public recapitalized GM, Chrysler and AIG to the tune of $60 billion. The portion lent to banks is expected to show a slight profit. This brings the loss down to an estimated $42 billion. That could grow another $100 billion as TARP gives "new loans to banks, aid to troubled homeowners and credit to small businesses."