Some years back there was another US government bailout, that of the Savings & Loans industry. A colleague at work said that he’d read that the US Government ended up making money on the deal in the end. Is this true?
Absolutely not. The GAO audited the Resolution Trust Corporation (pdf), the federal corporation set up to liquidate failed savings & loans, when the RTC wrapped up its operations at the end of 1995. The GAO found a total cost to taxpayers of $132 billion, consisting of $82 billion in losses on S&L’s liquidated by the RTC and $50 billion to pay off insured depositors in other S&L’s.