Banks Overpaid in Bailout

[falcon]

What a lucrative deal for the banks. That kind of stuff happens when you have a Wall St. fat cat paying off his fat cat buds. Too bad the congress was too dumb to anticipate thisscam.

http://news.yahoo.com/s/ap/20090206/ap_on_go_ca_st_pe/bailout_oversight

Financially ailing insurance giant American International Group, deemed by the TreasuryDepartment to be too big to be allowed to fail, received $40 billion from the Treasury for assets valued at $14.8 billion, the oversight panel found.

[DougMD]

Why should the Treasury care, it's not their money, they take no personal loss for overpaying. I wouldn't be surprised if the treasury guys are on an AIG tuna trip right now in the gulf.

[etothepii]

In a bright spot for the rescue program, the same banks that received capital infusions from Treasury have already paid $271 million in dividends to the federal government and are expected to pay $1.5 billion more in dividends by the end of this month. Wells Fargo, which received a $25 billion infusion, has already announced it would pay Treasury $371 million in dividends this month.

If returns like this keep up over the long haul, this overpayment will seem to be a stroke of genius.