Taxpayers Have Paid Wall Street $1.2 Billion In Fees So Far This Year

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[credit provider=”The Last Days Of Lehman Brothers”]

Here’s something that will infuriate more than a few of you: the US goverment is the biggest fee payer to investment banks this year.Meaning taxpayers are a big part of why Wall Street is in business right now.

From Fortune:

U.S. government has been the biggest fee payer to global investment banks in the first nine months of 2010.

Remember that $1 billion profit on TARP everyone on Wall Street likes to remind us of whenever taxpayers complain about the bailout?

The United States shelled out $1.15 billion in fees, mostly on bond offerings by the government-run mortgage companies Fannie Mae and Freddie Mac.

So that just vanished.

And here’s why it should really piss non-Wall Streeters off. Even though taxpayers’s $1.15 billion made the biggest contribution to banks’ fees, banks made much more off fees in total.

[Investment banks around the world collected] nearly $58 billion in fees in the first nine months of the year.

So taxpayers’ contribution, though huge, is a tiny fraction of their total take home. In other words, they’re nothing to them. Now we finally have a good and simple explanation of why everyone hates Wall Street (taxpayers pay them more than anyone else) and why they don’t care about taxpayers. Numbers.