The Bailout Makes A Profit*

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There’s good news and bad news. The good news is that the $700 billion bank bailout has finally made a profit. The bad news is that it’s for this week.

Paul Keil at ProPublica reports that $125.2 million came in and only $45.5 million went out through the bailout program over the last week, for a “profit” of $79.7 million. More from Keil:

As always, it’s time for your weekly update on the bank bailouts.There were seven more TARP takers this week, totaling $45.5 million:

These investments are through the Treasury’s program for “healthy banks,” the Capital Purchase Program. The Treasury currently has $197.9 billion invested in more than 550 banks all over the country. You can see the entire list of bailout recipients here.

Of course, bit by bit, banks have been returning bailout funds because of the bailout’s taint and restrictions on executive compensation. Yesterday, the 12th bank returned the money: Sterling Bancshares of Houston, Texas, returned $125.2 million. As you can see from our list of banks that have refunded their bailout money, the 12 have returned $1.16 billion so far. Lately, Capital Purchase Program investments have slowed down considerably, and more bailout money has been coming back to Treasury than has been going out.

This story first appeared on ProPublica.

It is the latest from ProPublica’s new bailout blog. Check out the all-seeing database of the bailout billions

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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