The federal government has reaped a $10 billion profit on bank loans made under the controversial Troubled Asset Relief Program (TARP).
The Treasury Department announced Tuesday that the government had pulled in another $1.7 billion in proceeds stemming from TARP loans.
Bank of Montreal had acquired M&I Bank of Milwaukee and, as part of the deal, paid back the purchased bank's share of TARP funds.
The reviled bailout program had been expected to prove extremely costly to the federal government, but bank assistance under the program has been in the black since March. All told, the government has received about $255 billion from banks under TARP, having lent out just $245 billion.
Treasury now estimates that when all is said and done, the section of TARP devoted to banks will net taxpayers a $20 billion profit.