Government Bailout To See $23 Billion Loss This Year: CBO

WASHINGTON -- A new report says the government's financial bailout program will see a $23 billion loss in the year that ended Sept. 30, compared with a $37 billion gain on taxpayers' investment the year before.

The Congressional Budget Office made the prediction in its report issued Tuesday on the federal budget. The expected loss is mainly due to the drop in the stock prices of General Motors and insurer American International Group, in which the government still holds big stakes.

AIG shares fell from around $40 to about $25 over the past year; GM shares fell from around $35 to $24.

Amid the 2008 financial crisis, Congress authorized spending $700 billion on the bailout. About $413 billion was lent. So far, the government has recovered around $318 billion.

Comments

[twninja]

01:22 PM on 02/01/2012

The people never approved of the bail outs. If corporations are people, how about some bail out for the real flesh and bones.

[VPerry24]

01:10 PM on 02/01/2012

What are they talking about, we are owed 133 billion from the bailout which we probably never see again.

[1dabut1]

11:30 AM on 02/01/2012

any bank that is making profit and paying out big bonuses, and has not paid off loan, should be seized, real simple, anything the bankers have bought seized, when the tax payers get their money back, you can start banking again. enough is enough.

[babyspittle]

11:30 AM on 02/01/2012

is this the "bad news" troles have been crowing about, lol?

we spend more on farm subsidies

[Birdman 49]

10:26 AM on 02/01/2012

Big business has refused to save money to help bail them out if something happens again, so we the People better not have to bail them out again, they are doing it to their selves (ok, to everyone) I for one don't want to see tax payer money bailing the out again. LET THEM DIE (BIG BANKS). They take in BIG money and still looking for a handout. NO WAY.

[lightningbolt]

08:22 AM on 02/01/2012

Bush, Cheney and Paulson should be in jail for orchestrating the greatest robbery in world history: the bailout.

[GeneEUss]

09:27 AM on 02/01/2012

They were loans... or purchased non-voting stocks in a company....

What this report means is that the remaining securities held by the government have dropped in value..... but it doesn't mean that the government must sell these securities NOW to recoup the LENT funds....

Most people are still mistaken that the BAILOUT was a cash give away...

IT WASN'T...

And if the bailouts had not been executed...
The credit Markets would have absolutely Seized....
and the Great Depressions 2.0 would have Certainly began in Full Force.....

Unfortunately , that is just the nature of these Beast.....
Like we must keep Great White Sharks alive and well in order to maintain Healthy Oceans and Seas

[1dabut1]

11:34 AM on 02/01/2012

atleast the sharks die once in a while, and give something back. are the ceo's getting their big bonuses, i'll bet they are.

[lightningbolt]

05:22 PM on 02/01/2012

TARP consisted of loans.  What about the remaining 23 TRILLION dollars?

[populux]

01:33 PM on 02/01/2012

You left out Obama.

[lightningbolt]

05:23 PM on 02/01/2012

You rightwingnutz are always trying to change the subject when your dear leaders get rightfully blamed for something.

[Angel Ortiz]

06:27 AM on 02/01/2012

Every tax paying middle class American saw that one coming, and the government turned its back on us

[GeneEUss]

09:30 AM on 02/01/2012

Since the Government hasn't cashed in these securities yet....
Nothing is actually Lost...

The Government will just wait until the value of these securities Goes UP again before they sell to recover the LENT $$$$$$$$.

These articles are so poorly written..... one is given the belief that there has actually been CASH lost and they are not talking about the intrinsic value of bought securities from these companies.

[VPerry24]

01:13 PM on 02/01/2012

GM needed 400 billion, the government gave them lots of cash. We were already told we won't be getting all of our money back. In fact, 133 billion from the bailout won't be recovered.

[DismayedRepub]

02:31 AM on 02/01/2012

Yeah well, AIG wrote all the Credit Default Swaps on all those mortgage backed Collateralized Debt Obligations we sold to the Chinese central banks back in the first half of the last decade. They were pretty pissed at us when they started to default in 2007. What did you expect?

[koos458]

02:02 AM on 02/01/2012

Considering what's about to happen in Europe, we got off lucky.

[babyspittle]

11:31 AM on 02/01/2012

ooh, a fortune-telling gypsy?

[koos458]

11:45 AM on 02/01/2012

Thank you. That would be so cool! Alas, I have no greater insight than reading the writing on the wall.

[General Washington]

10:47 PM on 01/31/2012

But, but, but...

I thought all the money was paid back AND we were making a profit on these deals?

Not so much eh?

[GeneEUss]

09:32 AM on 02/01/2012

The profits or loss well not be realized...
Only when the securities are sold...

This article just indicates that it is NOT a good time to sell....

Profits have been made Up to Date on the Securities that have been sold...

Eventually the $value of these securities will go up as well..
The Government will sell....

and some WILL NOT write an article telling us the Truth nor the Good News...

This article was written to cause anxiety....and it worked.

[General Washington]

12:39 PM on 02/01/2012

Ah, but the pronouncements about the TARP program - and AIG - in particular (I'm not so concerned about GM, as there is bound to be variability in their particular market, and therefore their share valuation), were that all the money had been paid back.

And that we'd made a profit.

Nothing about the valuation of existing assets still held by the Treasury, as a condition of the massive buy-in...

[Peanut Santiago]

10:21 PM on 01/31/2012

Who (among ordinary Americans) really knows how much money the government gave out and how much they will lose.

The "official" numbers are meaningless.
They gave out much more than they will ever admit to and will lose a lot more than will ever be known.

Just saying.......

[AZreb]

08:31 AM on 02/01/2012

true statement - numbers are twisted, tweaked, ignored when the government gives us one of its holy (or unholy) "reports"

[Birdman 49]

10:23 AM on 02/01/2012

I know if it happens again, who ever the President, Dem or Rep, they will not get reelected. Just saying, the American People will not stand by and allow these bad bankers to continue to rip off the people. Where are the people who needs to be put in JAIL for this mess, I am still waiting for that one. Big banks fooled the people and governments long enough, now get someone in jail for their wrong doing.

[Janzee12000]

08:48 PM on 01/31/2012

That $1 for $1 bailout for AIG Geithner provided certainly is working out for us.

[babyspittle]

11:32 AM on 02/01/2012

nope, bush's cronies were in charge during the BUSH AIG bailout.

[Janzee12000]

12:06 PM on 02/01/2012

At the NY FED Geithner was instrumental in the deal. That's in particulaer to how he got his job with this administration. All these bankers work with each other no matter who they report to..

[ur2nutty4me]

08:47 PM on 01/31/2012

Why do they keep siting the bailout at 700 billion giving the impression that that is all we spent. Start mentioning the trillions and trillions spent and guaranteed behind the public's back.

[GeneEUss]

09:34 AM on 02/01/2012

The money$ handled by the Federal Reserve are not accounted for as part of the U.S.Treasury....

It truly is independent of what the Government does or does not do.

[ur2nutty4me]

11:21 AM on 02/01/2012

What is your point. Are you trying to say this does not effect us.......

Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places

[babyspittle]

11:33 AM on 02/01/2012

another trole that doesn't understand the meaning of the word loan?

do all cons avoid learning their entire lives?

[ur2nutty4me]

02:22 PM on 02/01/2012

Sure we will recoup all this and a lot more right?

Citigroup: $2.5 trillion ($2,500,00­0,000,000)
Morgan Stanley: $2.04 trillion ($2,040,00­0,000,000)
Merrill Lynch: $1.949 trillion ($1,949,00­0,000,000)
Bank of America: $1.344 trillion ($1,344,00­0,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,­000,000)
Bear Sterns: $853 billion ($853,000,­000,000)
Goldman Sachs: $814 billion ($814,000,­000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,­000,000)
JP Morgan Chase: $391 billion ($391,000,­000,000)
Deutsche Bank (Germany): $354 billion ($354,000,­000,000)
UBS (Switzerla­nd): $287 billion ($287,000,­000,000)
Credit Suisse (Switzerla­nd): $262 billion ($262,000,­000,000)
Lehman Brothers: $183 billion ($183,000,­000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,­000,000)
BNP Paribas (France): $175 billion ($175,000,­000,000)
and many many more including banks in Belgium of all places

Get real.....................................

[jwilson1]

08:46 PM on 01/31/2012

I got a great idea why doesn't the government allow AIG to give big bonuses to all AIG employees?

Such stellar performance. Close down AIG and quite wasting money! Sell off all assets!

[DismayedRepub]

02:35 AM on 02/01/2012

There aren't any assets. They're trying to sell enough life insurance policies to cover their government debt. Hope your wife and kids don't starve after you croak.

[rosiebag]

11:28 AM on 02/01/2012

Dodd and Obam gave bonues in 2009,cost Dodd his job.Then barry sent acorn to protest.

[Grichde]

08:45 PM on 01/31/2012

Policy of government bailouts is “profits are private but losses are socialized. That is, any profits earned from risky speculation are the speculator's to keep, while all the losses are transferred to the public.

[frankieshoes1]

12:47 AM on 02/01/2012

Guess you didn't read the article. It said the investments the year before netted 37 billion. So over 2 yrs it's a 14 billion dollar gain. You can send that loss right to me.