The U.S. Treasury Department has wrapped up its mortgage bond program with a $25 billion profit, a Treasury official said.
The profit comes as Treasury has been working to exit from its 2008 rescue programs, including the Troubled Asset Relief Program.
Treasury sold its $250 billion in agency guaranteed mortgage-backed securities from Fannie Mae and Freddie Mac. Treasury bought the bonds from September 2008 through December 2009, said the official, who spoke on condition of anonymity because the Treasury has yet to announce the completion of the program.
The Treasury purchased $225 billion in government- sponsored-enterprise bonds and made a profit of $25 billion from principal, interest and the sale. Treasury announced in March 2011 it would begin winding down the program through sales of as much as $10 billion of bonds a month.
The Obama administration has highlighted the performance of the TARP bank program, which has returned about $259 billion, more than the $245 billion lenders received. There are 361 banks still remaining in TARP.
© Copyright 2016 Bloomberg News. All rights reserved.