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Taxpayers Are Still Owed $133B From TARP

From an unfazed Associated Press:

Taxpayers still owed $132.9B from bailout: report

January 26, 2012

WASHINGTON (AP) — A government watchdog says U.S. taxpayers are still owed $132.9 billion that companies haven’t repaid from the financial bailout, and some of that will never be recovered.

Luckily it is just taxpayers’ money. So who cares?

Still, haven’t Obama and the news media told us that almost all of the TARP money has been paid back? Now we are being told (below) that only 77% has been paid back. That $133 billion is still owed. And we might never get it all back.

The bailout launched at the height of the financial crisis in September 2008 will continue to exist for years, says a report issued Thursday by Christy Romero, the acting special inspector general for the $700 billion bailout.

Some bailout programs, such as the effort to help homeowners avoid foreclosure by reducing mortgage payments, will last as late as 2017, costing the government an additional $51 billion or so.

How many people even know about this mortgage reduction ‘bailout’? And it accounts for almost a third of the money that has not been paid back.

The gyrating stock market has slowed the Treasury Department’s efforts to sell off its stakes in 458 bailed-out companies, the report says. They include insurer American International Group Inc., General Motors Co. and Ally Financial Inc.

Did you know there were 458 companies bailed out?

If Treasury plans to sell its stock in the three companies at or above the price where taxpayers would break even on their investment — $28.73 a share for AIG, $53.98 for GM — it may take a long time for the market to rebound to that level, the report says. AIG’s shares closed Wednesday at $25.31, while GM ended at $24.92. Ally isn’t publicly traded.

It will also be challenging for the government to get out of the 458 companies as the market remains volatile and banks struggle keep afloat in the tough economy, it says…

Yes, it might take a while for GM to double the value of its stock. Meanwhile, we are constantly told that the government is no longer in the car business.

Treasury spokesman Matt Anderson said the department "has made substantial progress winding down TARP and has already recovered more than 77 percent of the funds disbursed for the program, through repayments and other income."

So after all this time only 77% of the money has been paid back.

This article very carefully blurs the distinction between the bank bailouts and the auto and other bailouts. The banks have paid back almost all of their bailout money – with interest. GM has not. The mortgage foreclosures have not.

The auto bailout was inserted at the insistence of the Democrats, especially Senator Barack Obama. And the mortgage bailout was all Obama’s idea.

In Romero’s quarterly report to Congress, she said her office has uncovered and prevented fraud related to TARP. Investigations by her office have resulted in criminal charges against 10 people and three convictions, the report notes.

Funny how we never heard anything about these charges.

Of course, what is a little fraud in the face of such a huge fraud?

This article was posted by Steve on Thursday, January 26th, 2012. Comments are currently closed.

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