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Rediff News  All News  » Business » BofA repays $45 bn US bailout money

BofA repays $45 bn US bailout money

December 10, 2009 13:45 IST

The Bank of America has repaid the US government the entire bailout money of $45 billion.

The Department of the Treasury announced on Wednesday that it has received full repayment on its Troubled Asset Relief Programme investments in Bank of America in the sum of $45 billion.

With this the federal exchequer has so far received a total of $116 billion of its bailout money.

"Treasury now estimates that total bank repayments could reach up to $175 billion by the end of 2010, cutting total taxpayer exposure to the banks by almost three-quarters from the peak," the statement said.

The department said it estimates that every one of its programmes aimed at stabilising the banking system -- the Capital Purchase Programme, the Targeted Investment Programme, the Asset Guarantee Programme, and the Consumer and Business Lending Initiative -- will earn a profit thanks to dividends, interest, early repayments, and the sale of warrants.

Total bank investments of $245 billion in FY'09 that were initially forecast to cost $76 billion are now projected to bring a profit of $19 billion.

"Taxpayers have already received about $15 billion in revenue through interest, dividends, and the sale of warrants, and that profit could be considerably higher as Treasury sells additional warrants in the weeks ahead," it said.

Lalit K Jha
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