From the maker of the video poking fun at QE2 comes another funny video on the bank bailouts.
Please enable JavaScript to view this video.
Source: Omid Malekan.
The video takes issue with recent announcements that the government is expected to make a $12.3 billion profit on the $45 billion investment in Citigroup (NYSE: C). Treasury's acting assistant secretary for the bailout program said in a statement: "Our investment in Citigroup has produced a significant profit for taxpayers. As we exit our investments ... it's clear that the cost of the TARP program will be a fraction of what many had once feared during the depths of the crisis."
The U.S. government made $13.5 billion selling its stake in General Motors (NYSE: GM), and it'll soon be selling its stake in AIG (NYSE: AIG). Treasury provided a total of $410 billion in disbursements from the TARP fund. With the Citigroup warrant auction, the amount that Treasury has received back in repayments and income on its investments totals $271 billion, Treasury said.
With that said, TARP is still expected to cost taxpayers $28 billion. It's a scary thought that $28 billion is less expensive to taxpayers than we first feared.
The video also takes issue with government warnings that banks were too big to fail, but then allowed and encouraged banks JPMorgan (NYSE: JPM) -- alias J.P. Morgan Chase Bear Stearns Washington Mutual -- and Bank of America (NYSE: BAC) -- aka Bank of America Countrywide Merrill Lynch -- to acquire other banks. I won't ruin the punch line about Goldman Sachs (NYSE: GS).
The video goes on to highlight some other absurdities from the financial crisis, like ex-Merrill CEO John Thain, now CEO of CIT Group (NYSE: CIT), using company money to buy a $70,000 desk while his bank was receiving taxpayer support. To be fair, the video is wrong. The desk was only $18,000; the credenza cost $70,000.
Give the video a look and let us know what you think. It's meant to be incendiary, but the absurdity of the events it chronicles takes care of that on its own.
If you're sick of Wall Street and looking for a Main Street stock in a hot new industry, click here to access the Fool's free special report, "The Only Stock You Need to Profit From the NEW Technology Revolution."
