US taxpayers at least see profits from bailout?

On Monday the New York Times reported that US taxpayers have seen a profit of nearly $4 billion, or the equivalent of about 15% annually, as eight of the biggest banks have fully repaid their obligations to the government arising from the financial bailout. The data were cited from the paper’s own analysis.

Meantime, as the edition says these initial returns are not a full accounting of the massive government rescue to support financial institutions and other companies during the credit crunch. The articles reports that the government faces potential big losses from corporate bailouts, and the Treasury Department could face losses on mortgage guarantees, according to the article.

The story, which cited Fed officials, said the internal estimate is based on the difference between fees and interest on the lending facilities, and the return that the U.S. central bank would have earned if it had put the money in three-month Treasury bills.