Regnat Populus

The people rule.

$2.5 Billion Profit for Treasury

Posted by Max Barron on April 17, 2009

Fresh off of the wire from Fox News

Per Barnes/FBN

Treasury reports receiving $2.5 billion in dividends so far from bank TARP investments, will publish dividend reports monthly — letter

Form the letters to Congress on transparency:

As of today, Treasury had received $2,518,531,260 in dividend payments under the CPP. Going forward, Treasury will begin

publishing these dividend payments on a monthly basis so the American people can see and

evaluate the dividend income they are receiving from these investments. In addition to dividends,

Treasury takes warrants in every institution in which it invests to ensure that taxpayers benefit from

any appreciation in the value of these companies.

Letters posted here: http://www.financialstability.gov/latest/04162009Letters.html

I have numerous questions regarding this $2.5 billion in dividend payments:

  1. Who paid up, specifically?
  2. Did the money come from banks that never asked for bailout money and are seeking to get out from under the government debt?
  3. Where will this money go?  –My theory: Undoubtedly it will find its way back into the coffers of Fedzilla… Not back to the people who fronted the money – Taxpayers.
  4. Will the Treasury relinquish its interests in banks that repay the funds? –I doubt it… Especially if it is profitable and will help forward their domestic agenda.

I also cannot help but wonder how much longer banks and institutions that took, or were forced to take, bailout monies from the government will continue to turn dividends.  If Fedzilla continues attacking those that accepted tax payer money for political purposes, it will continue to chase away the top talent that will turn the banks and companies around (i.e. AIG, BoA, Merryl Lynch).  Many of the major institutions are loosing their top intellectual muscle to start-ups and other firms that didn’t eat at the federal trough.  If Wall Street and top banks continue to hemorrhage their top tier talent to other firms… the firms that we bailed out grow less and less likely to return to profitability — thus losing our investment or forcing us to invest more.   Don’t get me wrong here.  I’m glad that banks and Wall Street firms  are paying dividends, and trying to repay their debt.  Maybe I’m just cynical and jaded, but I highly suspect that not only will the dividends begin to scale down, but also that the Treasury will continue to hold stakes in any and every firm that took money – even if/after it’s paid back.  I also foresee the inevitable collapse of many of these major players due to the loss of their best and brightest through political pressures.

I’ll continue to monitor and update this as I get answers to my questions and find new information.

UPDATE: I attempted to contact the Department of Treasury via both the general information line and the media phone line.  The person who answered General Information told me that my inquiry needed to be made to the Public Affairs office.  PA basically gave me the cold shoulder.  I will attempt to contact them again tomorrow.  As a tax payer I have a right to know who has paid back what amount of my money.

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One Response to “$2.5 Billion Profit for Treasury”

  1. […] machinations the Left desires.  Not to mention the added bonus of profits (to the tune of $2.5 billion thus far) on the dividends for TARP monies.  Which, I can assure you, will never be returned to the tax […]

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