Bailout loans to large financial institutions turning a profit for taxpayers

The government has been receiving dividends from banks and investment houses that had to ask for huge bailout loans from the taxpayers. Portions of the loans made under the Troubled Asset Relief Program have really become worthy investments. The loans that were lent to the finance industry are really making a profit overall. That said, the relief programs for housing have not been as successful. Article resource – Bailout loans paying dividends as banks rebound from recession by MoneyBlogNewz.

It was good to use TARP loans

Huge financial institutions and investment firms were able to get installment loans from taxpayers with the Troubled Asset Relief Program. many debated the issue though. However, according to CNN, the Department of the Treasury has reported that loans to banks and other entities in the financial industry have resulted in a $6 billion profit, which might grow to a $20 billion profit by the time all loans are repaid. About $432 billion was spent of the $700 billion TARP was allowed.

Mortgage modification program cut

There was not much success in the federal mortgage modification program. This disappointed the government. As a result, the Home Affordable Modification Program has wound up on the chopping block, according to MSNBC. Even though a bill getting rid of HAMP passed in the House, it might not pass in the U.S. Senate while the President himself may not want to sign it off. There is a success rate of less than 50 percent in the program which makes it a failure. It’s unlikely these programs that have failed can be eliminated although other mortgage relief programs have been talked about. There are many homeowners that need these programs to continue staying in their home. Even though the programs have been deemed failures, the President and Senate may not want to get rid of it so easily.

Wall Street feeling better about itself

There are many CEOs willing to hire once again because of the feel of a better economy, states Reuters. This was in accordance with respondents of a survey. Of the 142 CEOs that responded to the survey by the Business Roundtable, a trade organization for Chief Executive Officers at major corporations, more than half said they were going to start hiring individuals in the next year. If hiring at large firms picks up, that provides a boost to the middle class.

Information from

CNN

money.cnn.com/2011/03/30/news/economy/tarp_program/index.htm

MSNBC

msnbc.msn.com/id/42339454/ns/business-real_estate/

Reuters

reuters.com/article/2011/03/30/us-usa-economy-roundtable-idUSTRE72T3JE20110330