Government Should Bail Out Of Banking Industry

The U.S. government has finally seen a $4 billion profit from the billions that was previously loaned out by taxpayers. But, that is not the whole naked truth. All the cows have not come home yet.

According to The New York Times, some other cows may cause big losses to taxpayers. Big toxic assets from: American International Group (AIG), Fannie Mac, Freddie Mac, General Motors (GM), and Chrysler.

The U.S. government is still owed $6.2 billion worth of interest that other banks have not paid back.

Profits From Banks That Paid Back
1. Goldman Sachs – $1.4 billion
2. Morgan Stanley – $1.3 billion
3. American Express – $414 million

Five Banks Each Brought in $100-$334 Million Profit
1. Northern Trust
2. Bank of New York Mellon
3. State Street
4. U.S. Bancorp
5. BB&T

All of the challenges have not been met. Citigroup and Bank of America are still sitting on mortgages and loans that may prove to be toxic. This could result in billions of dollars of losses for taxpayers.

But, the original problem has grown even larger – the biggest banks have gotten even bigger! Those banks that were labeled “too big to fail” have gobbled up the banks that could not survive (The Washington Post).

What is the sum game? Consumers will be stuck with fewer options, tighter regulations, and higher prices. The bottom line is — that the big behemoth banking institutions now have an even greater advantage over the smaller institutions. More reasons for the government to bail out of the banking industry…