The bailouts the federal government made several years back, to keep some huge financial firms open and to prevent additional fiscal mayhem, may have not been as bad an idea as many imagined. One of the biggest bailouts was the AIG bailout, which amounted to almost $200 billion being lent to the establishment by the working class individuals. So far, the federal government has actually made a profit on AIG, about $18 billion worth. Source for this article: AIG bailout made the US $17.7 billion in profits


Cash for the US


It has been said before that the American government is colluding with the financial-industrial complex for the enrichment of both. The differences between the two, besides the letterhead on the stationery, appear to be disappearing, as the cash advance from the federal government in bailouts under the Temporary Asset Relief Program turned the federal government into investors, as those loans bought stakes in those businesses.


The AIG bailout amounted to $182 billion, including $90 billion alone from the New York federal Reserve, according to the Wall Street Journal. It was also a very political bailout.


The federal government sold off a variety of the AIG stake, and it already has made $17.7 billion in revenue. It was evidently a good investment.


Still some on the books


The last things gained with the TARP program were sold off by the government. The specific assets were part of the "Maiden Lane III" portfolio that was received with the AIG bailout.


The Wall Street Journal explained that the Maiden Lane III portfolio made $6.6 billion for the government. The portfolio had a lot of different securities in it such as the subprime mortgages which were part of the housing crisis, according to Fox Business.


The federal government still holds a 53 percent ownership stake in the company, as a result of shares in common stock that were acquired in the bailout, or roughly $24.2 billion. Those 871 million shares, according to ABC, could go for $30 billion depending on conditions.


Not the best bailouts


It has not been that bad to have Wall Street firms and banks supported by the AIG bailout and the TARP program in general. It has been pretty profitable. There was a 10 percent return on the $245 billion in loans that the government gave out, according to ABC. The federal government has made $21 billion in earnings from the loans.


However, other parts of TARP have not been successful. The Treasury Department anticipates a $25 billion loss when the shares acquired from Chrysler and General Motors get sold. The troubled mortgage refinance programs, which came to $46 billion in funding, are also believed to be a total loss. In total, it's estimated that TARP will result in a $63.5 billion loss.


Sources



Wall Street Journal

Fox Business

ABC