Banking, finance, and taxes
US Treasury Reaps Profit on Mortgage Bonds (AIG, GM)
Published:
The US Treasury reported this morning that it had sold the last of the $225 billion in mortgage-backed securities (MBS) that it purchased beginning in 2008 at the height of what appeared to be the beginnings of a collapse of some major US financial institutions. With this last sale of MBS, the Treasury reports the US government made a profit of $25 billion.
The federal government has also recovered about $331 billion of the $414.3 billion disbursed under the troubled asset relief program (TARP), and the Congressional Budget Office estimates that the final cost of TARP to US taxpayers will be about $34 billion. The takeovers of Fannie Mae and Freddie Mac, not included in the MBS figures, cost taxpayers $151 billion. US taxpayers still own a majority stake in American International Group Inc. (NYSE: AIG) and Ally Financial, as well as a minority stake in General Motors Co. (NYSE: GM).
The MBS became attractive to investors when the federal government took over Fannie and Freddie, virtually guaranteeing the MBS and paying a higher return than other US bonds.
Retirement planning doesn’t have to feel overwhelming. The key is finding professional guidance—and we’ve made it easier than ever for you to connect with the right financial advisor for your unique needs.
Here’s how it works:
1️ Answer a Few Simple Questions
Tell us a bit about your goals and preferences—it only takes a few minutes!
2️ Get Your Top Advisor Matches
This tool matches you with qualified advisors who specialize in helping people like you achieve financial success.
3️ Choose Your Best Fit
Review their profiles, schedule an introductory meeting, and select the advisor who feels right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.