Despite whatever you might have heard about these bailouts being a good investment, the taxpayers lost money on this deal.
The Treasury Department is acknowledging for the first time that it lost $61 billion on two key programs designed to stabilize the economy after the largest financial crisis in decades.
The government is losing more than $30 billion on lifelines extended to insurance giant American International Group Inc., according to Treasury data released Wednesday in an audit by the Government Accountability Office. It also is losing more than $30 billion on rescues of struggling automakers Chrysler and General Motors.
Treasury says the losses are offset in part by profits earned from bank bailouts. It says the bank bailouts will net taxpayers $19.5 billion.
Over all, the bailouts are projected to cost taxpayers $41.5 billion.
One thing not mentioned in this article is that the AIG bailout went directly to the banks. Thus the profits from the bank bailout is just a percentage on the losses from the AIG bailout.