AIG makes $972 million TARP repayment to Treasury

I did a search and found nothing on this topic.

WASHINGTON (Reuters) - The Treasury Department received a $972 million repayment from American International Group (NYSE:AIG - News), funded by proceeds from the sale of AIG'S American Life Insurance Co. subsidiary last November, Treasury said on Tuesday.

Treasury said its remaining investment in AIG now stands at $50 billion, and the Federal Reserve has about $17.5 billion in loans outstanding to the investment vehicles that hold former AIG assets.

After the latest repayment, the government retains a 77 percent stake in AIG through its holdings of common and preferred stock in the insurer.

At the peak of the 2007-2009 financial crisis, the U.S. government bailout for AIG was valued at about $182 billion.

The release of some of the proceeds that had been held in escrow from the sale of AIG's American Life subsidiary to MetLife last year allowed AIG to make the repayment.

Treasury said it now has received overall repayments and other income totaling $317 billion from investments made under TARP, the Troubled Asset Relief Program funded by taxpayers that was used to bail out distressed financial firms.

That $317 billion figure represents nearly a 77 percent return out of the total $413 billion disbursed through TARP, Treasury said..

finance.yahoo.com/news/AIG-makes-972-million-TARP-rb-1152169522.html?x=0

What happens to all that money?

Does it go towards the deficit or what? If "they" borrowed it, or whatever, and pay it back, does it make our bills a little smaller?

Good question. Our National Deficit should go down $317 billion... right?

Somehow I don't think it will.

reply to post by tooo many pills


I noticed that they never mention it in any news on the subject.

I hope someone with some experience helps me understand what happens to the money.

Originally posted by tooo many pills
Good question. Our National Deficit should go down $317 billion... right?

Somehow I don't think it will.

Nope, we already spent it on spreading our peace throughout the world. Tax Payers should be happy that their money is going to the betterment of mankind.



Good find, OP, I was unaware.

That's very nice, but their mistakes caused a chain reaction that cost America millions of jobs.

How will that be repaid?

Originally posted by liejunkie01

What happens to all that money?

Does it go towards the deficit or what? If "they" borrowed it, or whatever, and pay it back, does it make our bills a little smaller?

edit on 1-11-2011 by liejunkie01 because: linky

edit on 1-11-2011 by liejunkie01 because: spelling

No they spend it and use the numbers to pad the books. Same accounting methods used by Enron I think.

reply to post by Blaine91555


That is what I am thinking.

Somebody is getting a kickback somewhere

"The Treasury Department received a $972 million repayment from American International Group (NYSE:AIG - News), funded by proceeds from the sale of AIG'S American Life Insurance Co. subsidiary last November, Treasury said on Tuesday.

Treasury said its remaining investment in AIG now stands at $50 billion"

Oh wow AIG, you paid back 2% of the total you owe. So in how many years will you have it all paid back by?

reply to post by CREAM

Oh wow AIG, you paid back 2% of the total you owe. So in how many years will you have it all paid back by?

They probably have no intentions of paying it all back.

They might be planning to borrow more

I decided to do some snooping around on the Tarp repayments.


The article is from May 26, 2011 13:26 EDT

So if we look at the fact that Treasury has recovered 75% of the funds advanced under TARP and other rescues, do we feel better? No. Let’s go down the list of financial and economic “costs” which must be offset against the alleged recoveries by Treasury.

First and foremost we must subtract the vast flow of subsidies that are still flowing through the income statements of banks and non-bank financial firms which participated in the government rescue program. Since 2007, the Fed has pushed the cost of funds for the banking industry down by about $100 billion annually in terms of interest expense, according to the FDIC’s Quarterly Banking Review. This includes reduced interest paid to individual savers and FDIC guaranteed debt issued by banks and the likes of General Electric.

The cost to American savers generally as well as all types of investors in non-bank financial instruments due to artificially low interest rates maintained by the Fed is a multiple of that figure annually. In other words, the cost to Americans each year in terms of transfers of wealth from individual and corporate savers to banks and large debtor corporations probably equals all the funds recovered by Treasury and the interest payments on same.

By my calculations, that puts the American people behind a couple of trillion dollars thanks to the corporate philanthropy of Tim Geithner, Hank Paulson, George Bush and Barack Obama. Indeed, so generous have Geithner and Obama been to the banks that Wall Street is already filling the Obama reelection coffers. But the real cost to the American people of the TARP bailout and related operations is a no growth economy.

.
blogs.reuters.com/christopher-whalen/2011/ 05/26/are-americans-really-benefitting-from-tarp-repayments/

I think that it means we get screwed

reply to post by liejunkie01


I wouldn't doubt that in the time it took to pull out a checkbook, write the check, tear it out, and hand it to somebody, our national debt went up that amount.

Originally posted by TupacShakur
reply to post by liejunkie01

 

I wouldn't doubt that in the time it took to pull out a checkbook, write the check, tear it out, and hand it to somebody, our national debt went up that amount.

I found this debt clock.

Watch it go
www.usdebtclock.org...

reply to post by liejunkie01


Thanks for paying Attention! How do those numbers add up?
The Whole Global Banking System at this point is "Privatize the Gains, and Socialize the Losses".
So, "Socialism" is O.K. when they can socialize the losses.But Social Programs af any sort are "Negative" when a Countries populus gets a fair Shake. Then they become "Entitlements".
Unacceptable.
Great Post!
S&F

Originally posted by CREAM
"The Treasury Department received a $972 million repayment from American International Group (NYSE:AIG - News), funded by proceeds from the sale of AIG'S American Life Insurance Co. subsidiary last November, Treasury said on Tuesday.

Treasury said its remaining investment in AIG now stands at $50 billion"

Oh wow AIG, you paid back 2% of the total you owe. So in how many years will you have it all paid back by?

Yea imagine if people saddled with student loans can pay back their debt with those terms. At that rate, inflation and the inevitable erosion of the value of the dollar will pay off the debt on its own.

reply to post by liejunkie01


Oh goody. Only $181 billion to go!

reply to post by Vikus


Oh, but those people knew what they were getting into, unlike the wild-west financial investment firms. therefore people who took out loans for college should be saddled with these loanshark debts even though the economy offers them no prospects. They should suffer, like the sacks of # they - and all poor people - are. We can let the financial firms go scot free because - didn't you know? They're job creators.

/sarcasm

Its a drop in the bucket. it is meaningless. 975 million is nothing to these people. All the money they have pissed away they could give every man woman and child in the country a few million a piece end the depression and still have money to burn...

reply to post by hawkiye


Yeah but see, that'd be "socialism." And we can't have socialism! Especially not on a Democrat's watch - he'd look "soft," after all.

Instead we must be staunchly capitalist! The poor must suffer so that the wealthy can binge!

Originally posted by TheWalkingFox
reply to post by hawkiye

 

Yeah but see, that'd be "socialism." And we can't have socialism! Especially not on a Democrat's watch - he'd look "soft," after all.

Instead we must be staunchly capitalist! The poor must suffer so that the wealthy can binge!

No it wouldn't be socialism it would be a down payment on the trillions stolen in the last 80 years from the people who earned it in capitalism. Nice try though...

reply to post by hawkiye




Sorry, next time I'll try to make my sarcasm even more obvious.