Feb 6 -The U.S. Treasury Department is making a $13.4 billion profit on the bailout of Citigroup as taxpayers continue to see a profit from the controversial TARP bailout. Conway G. Gittens reports.
Today's Daily Digit is $13.4 billion. The U.S. government will scoop up $13.4 billion in gravy on bailing out Citigroup. The U.S. Treasury is selling its final stake in the financial institution for nearly $900 million -bringing the total profit on the bailout to $13.4 billion. The sale will bring to a close the U.S. Treasury Department's investments in the company, which once totaled $45 billion. Citigroup was one of the biggest institutions bailed out under the Troubled Asset Relief Program, or TARP, launched in 2008 as the financial crisis hit a fever pitch. So how's the government's track record so far: The profit on AIG - $22.7 billion, $4.5 billion when it comes to Bank of America, but the Treasury lost $1.5 billion on Chrysler. There are two major outstanding bills. Only $5.8 billion of the $17.2 billion that went to Ally Financial has been recovered. And more than half of the $50 billion bailout of General Motors has been retrieved. But the Treasury will likely see a multi-billion dollar loss on that one. All-in-all, taxpayers are coming out on top. TARP is turning a profit.