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Patswil

04/08/24 3:46 PM

#791331 RE: kthomp19 #791325

I’ve never seen someone post so much BS in my life

MannSinger

04/08/24 5:43 PM

#791349 RE: kthomp19 #791325

Federal Reserve made 10% profit in AIG after warrant

Federal Reserve bailouted AIG for total of $182B and got 79.9% warrant.
Total profit for Federal Reserve was $96.6B after 5 years.
That means ($96.6B/$182B)/6yrs = 10% return.
Federal Researve has to excercise warrant to get 10% return.

Paulson parameter
Interest rate for companies who returned before 5 years = 5%
Interest rate for companies who returned after 5 years = 10%

In case of GSEs, USG bailed out GSEs and has made 10% + $30B.