Bailout loans paying out dividends as financial institutions come back from recession

banks and investment houses that received bailout loans from taxpayers are paying out returns to the government. The Troubled Asset Relief Program created relief programs for numerous industries, but banks and other financial institutions have been recovering faster from the recession than other industries, and those loans have managed to turn a profit. The housing relief programs that were part of TARP did not work out also.

It was good to use TARP loans

The installment loans from the taxpayers to huge banks and investment firms under the Troubled Asset Relief Program were certainly a reason for controversy. CNN reports the Department of Treasury has made a $6 billion profit already. This may grow to be a $20 billion profit at the end of the program. 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. MSNBC reports that due to this, there might not be a Home Affordable Modification Program anymore. Even though a bill getting rid of HAMP passed in the House, it might not pass in the Senate while the President himself might not want to sign it off. The program has been deemed a failure, as it has a success rate of less than 50 percent in modifying mortgages. Other mortgage relief programs are being targeted for elimination, but eliminating such programs would likely also be symbolic. 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.

All about Wall Street

There are many CEOs willing to hire once again due to the feel of a better economy, reports Reuters. This was according to respondents of a survey. More than half of the 142 CEOs that responded to the survey said they would hire for next year soon. The survey was done by the Chief Executive Officers at major corporations’ trade organization, Business Roundtable. If hiring at large firms picks up, that provides a boost to the middle class.

Articles cited

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