U.S. Treasury Sees $24 Billion Profit From Rescue Programs
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The Treasury Department said today the U.S. government’s financial rescue programs will earn a combined profit of about $24 billion, based on current market conditions.
The new estimate includes the Troubled Asset Relief Program, for which Congress approved $700 billion, along with rescue efforts by the Federal Reserve and other regulators. Losses from support to Fannie Mae, Freddie Mac and other housing programs should be offset by profits from the Treasury’s investments in banks and purchases of mortgage-backed securities, along with Fed earnings, the Treasury said in a statement.