Toxic Assets
U.S. Treasury makes $1.4 billion on "toxic assets"Posted by RJ and Makay on Jan 24, 2011 |
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Fortunately for U.S. taxpayers, government purchases of "toxic assets" as part of the $700 billion bailout program haven't been the totally disastrous investments most people feared. The U.S. Treasury's toxic asset funds, for example, have risen 27% since their 2009 inception.
The Treasury initially bought $5.2 billion worth of toxic assets (illiquid securities of troubled banks and other financial institutions) to help prop up the mortgage-backed securities market. As a result of about $300 million in equity distributions and successful private money management by BlackRock, Invesco, and others, that initial investment grew by $1.4 billion to about $6.3 billion as of the end of 2010.
