Treasury Projects $19B Profit from 'Bank Investments'

MoneyBank of America has repaid it’s $45 billion portion of bailout money, bringing the total bank repayments to U.S. coffers to $118 billion, the U.S. Treasury said today.
Moreover, the Treasury projects a $19 billion profit from its “bank investments” – stemming from the various bailout programs designed to stabilize the financial sector.
Total bailout repayments could reach “$175 billion by the end of 2010, cutting total taxpayer exposure to the banks by almost three-quarters from the peak,” the Treasury said.
Bank of America announced last week it would repay the money from sale proceeds of $18.8 billion in “common equivalent securities.” The remainder was to be repaid in cash.
“Treasury currently estimates that every one of its programs aimed at stabilizing the banking system – the Capital Purchase Program, the Targeted Investment Program, the Asset Guarantee Program, and the Consumer and Business Lending Initiative — will earn a profit thanks to dividends, interest, early repayments, and the sale of warrants,” the Treasury said.
Total “bank investments of $245 billion in fiscal year 2009” that were initially projected to cost $76 billion are now projected to bring a profit of $19 billion, the Treasury reported.
Last week, the Treasury said it will earn $146.5 million from the auction of Capital One’s stock warrants, an arrangement that stems from the initial bailout of the banking giant. Tomorrow, it will auction off the stock warrants it received from JPMorgan Chase.
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