Tuesday, October 26, 2010

TARP: Still a Loser

Woopsie! Seems that Geithner's TurboTaxTreasury accounting, ah, .....is disingenuous.

In early October, the Treasury issued a report predicting that the taxpayers would ultimately lose just $5 billion on their investment in A.I.G., a remarkable outcome, since the insurance company was extended $182 billion in taxpayer money in the early months of its rescue. The prediction of a modest loss, widely reported as A.I.G., the Federal Reserve and the Treasury rushed to complete an exit plan, contrasted with an earlier prediction by the Treasury that the taxpayers would lose $45 billion.”

"A change in accounting methodology" was the excuse given by Treasury.

Yes. We're all acquainted with the CPA who asks "What do you WANT to pay" (in taxes.) Evidently he's moved over to Treasury.

HT: Ritholtz

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