Critics were right: We tax payers are never getting our TARP $$ back
Started by Riversider
over 16 years ago
Posts: 13572
Member since: Apr 2009
Discussion about
http://www.nypost.com/seven/08132009/business/apts_to_rent__2b_184293.htm A bill winding its way through Congress proposes to prop up deteriorating apartment complexes by injecting $2 billion from the Troubled Asset Relief Program into an effort to stabilize multifamily properties in default or foreclosure. The bill, which is called the TARP for Main Street Act and was sponsored by House Financial... [more]
http://www.nypost.com/seven/08132009/business/apts_to_rent__2b_184293.htm
A bill winding its way through Congress proposes to prop up deteriorating apartment complexes by injecting $2 billion from the Troubled Asset Relief Program into an effort to stabilize multifamily properties in default or foreclosure.
The bill, which is called the TARP for Main Street Act and was sponsored by House Financial Services Committee Chairman Barney Frank (D-Mass.) and Rep. Nydia Velazquez (D-Brooklyn and Manhattan), would use TARP funds that have been returned by banks and plow it into programs that, according to the bill, would create "sustainable financing" for the complexes as well as provide funding for property rehabilitation.
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Altogether, accounting for both the TARP and the Fannie and Freddie bailout, $608B has gone out the door—invested, loaned, or paid out—while $371B has been returned.
The Treasury has been earning a return on most of the money invested or loaned. So far, it has earned $183B. When those revenues are taken into account, $53.5B is the net still outstanding as of Oct. 25, 2013.
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Response by Riversider
about 12 years ago
Posts: 13572
Member since: Apr 2009
The federal government seems to be on track in recouping the $414 billion in taxpayer money spent under the Troubled Asset Relief Program, with $120.7 billion now outstanding. But it turns out that over 130 bailed-out institutions paid back their TARP money simply by taking out loans from yet another government program, suggesting that the government--and taxpayers--actually haven’t gotten paid back yet.
A new report from the Government Accountability Office, flagged by the Roosevelt Institute’s Matt Stoeller, shows that 40 percent of the 341 institutions that have exited TARP’s biggest single initiative--the $205 billion Capital Purchase Program--simply refinanced their loans through a separate, $30 billion government program known as the Small Business Loan Fund (SBLF below).
Your last couple posts do not support "Only if you don't fully account for the true costs borne by the tax payer."
Neither the first part of the sentence which would read "yes, but only if..." nor the latter part that alludes to some "true costs" in excess of the hard dollar amounts.
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Response by 9d8b7988045e4953a882
about 12 years ago
Posts: 236
Member since: May 2013
I don't believe that government should bail out failed companies. It essentially rewards failure and prevents new companies with better management from arising. It also creates moral hazard, encouraging excessive risk taking.
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Response by fieldschester
about 12 years ago
Posts: 3525
Member since: Jul 2013
> It also creates moral hazard, encouraging excessive risk taking.
Anything more recent RS?
Dream on, hb.
http://projects.propublica.org/bailout/
The Bailout Scorecard
Last update: Oct. 25, 2013
Altogether, accounting for both the TARP and the Fannie and Freddie bailout, $608B has gone out the door—invested, loaned, or paid out—while $371B has been returned.
The Treasury has been earning a return on most of the money invested or loaned. So far, it has earned $183B. When those revenues are taken into account, $53.5B is the net still outstanding as of Oct. 25, 2013.
The federal government seems to be on track in recouping the $414 billion in taxpayer money spent under the Troubled Asset Relief Program, with $120.7 billion now outstanding. But it turns out that over 130 bailed-out institutions paid back their TARP money simply by taking out loans from yet another government program, suggesting that the government--and taxpayers--actually haven’t gotten paid back yet.
A new report from the Government Accountability Office, flagged by the Roosevelt Institute’s Matt Stoeller, shows that 40 percent of the 341 institutions that have exited TARP’s biggest single initiative--the $205 billion Capital Purchase Program--simply refinanced their loans through a separate, $30 billion government program known as the Small Business Loan Fund (SBLF below).
http://www.washingtonpost.com/blogs/wonkblog/post/the-government-has-recouped-tarp-money-by-accepting-other-government-funds/2012/03/09/gIQAHgdT1R_blog.html
Your last couple posts do not support "Only if you don't fully account for the true costs borne by the tax payer."
Neither the first part of the sentence which would read "yes, but only if..." nor the latter part that alludes to some "true costs" in excess of the hard dollar amounts.
I don't believe that government should bail out failed companies. It essentially rewards failure and prevents new companies with better management from arising. It also creates moral hazard, encouraging excessive risk taking.
> It also creates moral hazard, encouraging excessive risk taking.
yes