Wednesday, December 12, 2012

U.S. Treasury rakes in $23 billion from AIG Tarp Loan, and Corp. CEO's Okay with Wealth Tax.

The naysayers were wrong, and the country is getting back on track:
Reuters: The U.S. Treasury's sale of its remaining stake in American International Group Inc (AIG.N) will leave taxpayers with a profit of nearly $23 billion - more than the next three most successful bailouts combined.

The government's profit on the deal is a turnabout from what was one of the most reviled bailouts of the financial crisis. The 2008 rescue later spurred a senator to suggest top executives at the insurer consider suicide. The Government Accountability Office at one point suggested there was a real chance taxpayers would never be repaid in full. The government provided AIG with some $182 billion of support.

$38 billion in TARP funds have yet to be recovered, the Treasury said. According to the latest monthly report to Congress, some 237 banks still owe money under the Capital Purchase Program. 
CEO's on board with tax increase:
NY Times: A broad swath of the nation’s leading chief executives dropped its opposition to tax increases on the wealthiest Americans on Tuesday, while the White House quietly pressed Wall Street titans for their support as well. “We recognize that part of the solution has to be tax increases,” David M. Cote, chief executive of Honeywell, said on a conference call with reporters. “That’s the only thing that allows a reasonable compromise to be reached.”

Even as the Fortune 500 leaders announced their shift, the White House continued to work behind the scenes to woo some of Wall Street’s most powerful financiers … What’s more, the political symbolism of some of the wealthiest Americans’ saying they support higher taxes on the rich takes a bit of the sting out of the idea of raising rates, for both Democrats and Republicans. 

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