2008-crash bailout bill cost $33 billion
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.