TARP Returns 8.2 Percent So Far!

hankpaulson TARP Returns 8.2 Percent So Far!The U.S. Department of the Treasury has proven to be a pretty decent investor, as returns on its bailout of the financial-services industry have reached 8.2 percent over the past two years, Bloomberg reports.

The Troubled Asset Relief Program, an enduringly controversial emergency measure undertaken in late 2008 to save the financial system from buckling during the height of the credit crisis, has made $25.2 billion on an initial investment of $309 billion, according to Bloomberg. That means the American taxpayer has ratcheted up gains that exceed those of 30-year U.S. Treasuries, high-yield savings accounts and CDs, says Bloomberg.

Here are some additional fun figures from Bloomberg’s calculations:

  • The broad stock market was a more profitable investment than TARP, netting 24 percent in the two-year period.
  • Gold was even better, returning 66 percent.
  • The TARP profit would be enough to keep the SEC going for two decades.

Maybe the U.S. government should just take over the entire banking system. With investment savvy like this, we could balance the budget in no time!

mtaylor [at] observer.com | @mbrookstaylor