THE US Treasury Department has said that the many programs that it, the Federal Reserve and banking authorities implemented during the darkest hours of the 2007-2009 financial crisis will likely end up making a profit for taxpayers.
At a background presentation for reporters, a senior Treasury official who spoke on condition of anonymity said the department wanted to get word out about the success of the financial bailout before myths developed about it.
The senior official emphasised that rescue of the tottering financial system, which was on the verge of collapse in 2008, had been a bipartisan effort undertaken initially by the Bush administration and continued when President Barack Obama took office in 2009.
There were various pieces to the rescue that caused the Treasury to make investments in some big banks in return for bailout money, and they now are turning out to be profitable. The Fed is also remitting excess earnings from programs it ran to the Treasury.
Earlier this week, the Treasury scaled back the ultimate estimated cost of the centrepiece program, the Troubled Asset Relief Program, or TARP, to around $60bn (£38bn) from a previous estimate of $68bn.
City A.M. Reporter