When a company gets bailed out with taxpayer money, why is it not owned by the public now?

1.21K viewsEconomicsOther

When a company gets bailed out with taxpayer money, why is it not owned by the public now?

In: Economics

26 Answers

Anonymous 0 Comments

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

You are viewing 1 out of 26 answers, click here to view all answers.