Taxpayers earned a $12-billion profit on the U.S. Treasury’s $45-billion bailout of Citigroup Inc., the government reported as it sold the last of its stock in the banking giant.
The Treasury said late Monday that it sold 2.4 billion Citigroup shares to private investors at $4.35 apiece, raising $10.5 billion.
That brought to $57 billion the government’s total proceeds from the bank, including previous sales of Citigroup stock as well as dividend and interest income that the bank paid the government..
“By selling all the remaining Citigroup shares today, we had an opportunity to lock in substantial profits for the taxpayer and avoid all future risk,” Tim Massad, acting assistant secretary for financial stability, said in a statement. “With this transaction, we have advanced our goals of recovering TARP funds, protecting the taxpayer and getting the government out of the business of owning stakes in private companies.”
[ ]…The bank said in a statement Monday that it was “very appreciative of the support provided by the U.S. Treasury during the financial crisis.”
As previously reported, the projected cost of the total $700-billion financial-system bailout fund of 2008 — initially feared to be a huge drain on taxpayers — continues to drop, with the nonpartisan Congressional Budget Office estimating last week that losses would amount to $25 billion.
Tea smoking conservatives accomplished quite the trick in the midterms, pretending they had nothing to do with the TARP bail-out – Sarah Palin supported it than pretended she never said any such thing. That lame stream media keeps track of what she says thus the unhinged hatred. And of course the whole time they were using TARP as a cudgel during the campaign season tea smoker plastic roots backers FeedomWorks was promising Wall St/TARP recipients they would soon stop those mean Democrats from picking on them.
The culture of corruption is back – New Conservative Republican Appropriations Chairman Rep. Hal Rogers (R-KY) Was ‘Porker Of The Month’ In August. The Tea Smokers must be proud – At Least 13 New Republican Members Of Congress Hire Corporate Lobbyists To Manage Their Office
Is the payroll tax holiday a threat to Social Security. It took less then two days for Democrats to have a split in opinion over the possibility – Will The Payroll Tax Cut Threaten Social Security?
The latest argument against the tax deal goes like this: After the payroll tax, which funds Social Security, is temporarily cut to stimulate the economy, Republicans will never let it go back up again, and indeed, that’s what they’re telling Ryan Grim on the Hill. This is all just a secret plan to roll Obama and go after the social safety net. Jon Walker writes at Firedoglake, “The payroll tax holiday was never a progressive idea.”
Wasn’t it? Rep. Jan Schakowsky’s progressive budget plan included a payroll tax cut, and the Campaign for America’s Future called it “A Proposal That Actually Strengthens Social Security.” Josh Bivens of EPI endorsed a payroll tax cut in February, 2010, as a good method to stimulate the economy. Progressive Senator Dick Durbin made the deficit commission include a payroll tax holiday to stimulate the economy. This is an idea that has a fairly prominent progressive pedigree.
Now, the payroll tax cut is not the most efficient path to fiscal stimulus or even the first progressive choice, but it is one of the best tax side measures, and like it or not, that’s the most likely way to get stimulus into the economy right now. The question is whether Democrats will make sure that the cut expires over GOP objections — not exactly a maneuver where they’re earning high marks right now. But Kevin Drum thinks the dynamic around this temporary cut are different from those around the Bush tax cuts, because it’s not linked to anything else, it’s a relatively short change targeted mainly at low- and middle-income folks, and the fight will not come during an election year. I find that pretty convincing.
I don’t know that I’m convinced, only it is true that Democrats as a party do bring out the heavy artillery at any attempt to dismantle Social Security. Dean baker disagrees – The Obama Tax Deal: Giving the Hostage Takers More Hostages. I’m already tired of the crystal ball glazing about a process issue. If Democrats are for it, Republicans will draw a line in the sand a few feet into Democratic territory. Conservatives are committed to being the party that represents the plutocracy and have no moral compunctions what so ever at holding working class Americans hostage to achieve those ends. Worrying about the future is reasonable. Throwing up one’s hands in defeat is not. Why and how did the right-wing get the advantage in talking points and media influence it has today – thick or thin, victory or defeat – over the last fifty years they blindly pursued their goals. Liberals and the staunchly progressive could take a lesson from that. Think long term. Think about making conservatives resort to scorched earth politics and the daily propaganda in order to achieve their ends. Time is on the side of the rational, the common good and the stubborn Democrats. Demographics are shifting our way. The midterms were a baby step backwards.