Remember way back when the government brokered a deal for JP Morgan to take $30 billion of Bear Stearns assets? JP Morgan was responsible for only the first $1.15 billion in losses while the government was responsible for everything beyond that.
Bloomberg reports that the central bank’s Board of Governors wrote in a Dec. 29 report to Congress that it didn’t expect “any net loss to the Federal Reserve or taxpayers” from the Bear Stearns holdings. Looking at the chart now, it seems like taxpayers will be on the hook for a lot of money. Currently, taxpayers are down $3.07 billion.
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