Are Taxpayers Getting A Fair Deal On TARP Repayments?

Yesterday, two major US banks (Bank of America and Citibank) posted very substantial quarterly profits, following the record profits of Goldman Sachs a few days ago. Is this a sign that the financial sector is finally recovering from the meltdown of  2008?

Both, Bank of America and Citibank, were recipients of funds under the TARP program. This immediately should raise the question: Is the taxpayer receiving a maximum benefit from the TARP massive financial injection into the two financial institutions?

A Congressional Oversight Panel is in charge of making such determination. On July 10, 2009 they issued a report analyzing “TARP Repayments Including The Repurchase of Stock Warrants.” Eleven banks have already repurchased their stock warrants from the Treasury for a total amount estimated to be only 66 percent of its estimated value.

For the full report of the Congressional Oversight Panel click here.