WASHINGTON—U.S. taxpayers’ $2.3 billion stake in CIT Group Inc. has officially been wiped out, according to a Treasury report released Wednesday.
The Treasury provided the commercial lender with funds from the Troubled Asset Relief Program, or TARP, in December 2008, but CIT Group still ended up undergoing a bankruptcy reorganization by the end of 2009.
Despite the CIT Group loss, which was expected, and other likely taxpayer losses, the Treasury expects the cost of TARP will continue to fall from the current level, of just under $120 billion. The Treasury is expecting its losses on financial-sector rescue efforts to largely stem from aid provided to domestic auto makers, American International Group Inc. and government sponsored enterprises Fannie Mae and Freddie Mac.
“If Congress joins the president in adopting a Financial Crisis Responsibility Fee, Americans will not have to pay one cent for TARP,” Treasury Secretary Timothy Geithner said in a statement Wednesday.
The Treasury expects to turn a profit on aid provided directly to the banking sector, and on Wednesday said that it had received a $7.6 billion TARP repayment from PNC Financial Services Group Inc. Including the PNC transaction, banks have repaid $173 billion in capital borrowed from the Treasury.
But, but, but…..I thought we (the taxpayers) were MAKING money on all these bailouts?! More lies and more lies.