2008-crash bailout bill cost $33 bil­lion

The Washington Times Daily - - POLITICS - — David Sherfinski

The gov­ern­ment’s TARP bailout, meant to res­cue Wall Street and the auto in­dus­try from the 2008 crash, will end up cost­ing tax­pay­ers $33 bil­lion, the Con­gres­sional Bud­get Of­fice said Fri­day.

Known of­fi­cially as the Trou­bled As­set Re­lief Pro­gram, TARP was a $700 bil­lion pro­gram de­signed to in­fuse money into banks and in­vest­ment firms, and was later tapped to aid the coun­try’s ma­jor car man­u­fac­tur­ers. Of the $700 bil­lion ini­tially au­tho­rized, about $438 bil­lion has been paid out, the CBO said.

Some of the money pro­duced re­pay­ments and in­vest­ment re­turns, while other money did not.

The fed­eral gov­ern­ment doled out a to­tal of $313 bil­lion for fi­nan­cial in­sti­tu­tions, but ac­tu­ally re­couped $24 bil­lion from buy­ing bank shares and giv­ing ad­di­tional as­sis­tance to Cit­i­group and Bank of Amer­ica. The gov­ern­ment also gained $3 bil­lion from pub­lic-pri­vate part­ner­ship in­vest­ments.

But those gains were over­shad­owed by losses: $33 bil­lion for home mort­gage pro­grams, $12 bil­lion to prop up Gen­eral Mo­tors and Chrysler, and $15 bil­lion to bail out in­sur­ance com­pany Amer­i­can In­ter­na­tional Group (AIG), the CBO said.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.