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Actually, the government did very well considering that the loans (especially the AIG loan) were short term and fully repaid. The government made $5.6 billion on $67.8 billion loaned, the Federal Reserve made a profit of $17.7 billion.

http://projects.propublica.org/bailout/entities/8-aig

The Louisiana and Alaska purchases didn't turn a profit for years, and took a substantial amount of additional capital. AIG is back to relative stability and pays taxes.




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