When a company gets bailed out with taxpayer money, why is it not owned by the public now?
In: Economics
It depends. A bailout isn’t always just handing lots of money over to a failing company. For example, the US Government covered the toxic assets of Citigroup, Bank of America, and AIG through the TARP program.
These assets, if held by these companies, more than likely would’ve sunk all of them. They consisted of mortgage-backed securities and CDOs which were both tied to subprime mortgages. They become toxic after much of their mortgages defaulted
Latest Answers