Sunday, February 8, 2009

The Private Sector versus the Government

From the Congressional Oversight Panel report on TARP:

The Government:

In the eight transactions which were made under the investment program for healthy banks, for each $100 spent, Treasury received assets worth approximately $78.

In the two transactions which were made under programs for riskier banks, for each $100 spent, the Treasury received assets worth approximately $41.

Overall, in the ten transactions, for each $100 spent, the Treasury received assets worth approximately $66.

The Private Sector:

For each $100 Mitsubishi invested in Morgan Stanley, it received securities with a fair market value of $102.

For each $100 Berkshire Hathaway invested in Goldman Sachs, it received securities with a fair market value of $110.

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