Taxpayers Still Waiting for $133B in Bailout Cash
February 08, 2012
The acting inspector general for the U.S. Government's financial bailout announced this month that taxpayers are still owed a whopping $133 billion. The announcement came in a quarterly report to Congress. Following the 2008 financial crisis, Congress authorized $700 billion for the bailout of financial companies and automakers, called the Troubled Asset Relief Program (TARP). About $413 billion was lent.
Just who owes the taxpayer’s money?
- American International Group (AIG) Inc. - around $50 billion
- General Motors (GM) Co. - $25 billion
- Ally Financial Inc. - $12 billion
The 371 banks that still owe money include:
- Regions Financial Corp - $3.5 billion
- Zions Bancorporation - $1.4 billion
- Synovus Financial Corp. - $967.9 million
- Popular Inc. - $935 million
- First Bancorp of San Juan, Puerto Rico - $400 million
- M&T Bank Corp. - $381.5 million.
So far, the government has recovered about $318 billion, or about 77 percent of the money loaned to the private sector. The Treasury Department’s plans to recoup that money have been slowed by the stock market and weakness among smaller banks. In order for the Government to make the taxpayer’s money back it would have to sell stocks at certain rates. For example, stocks of the largest recipients at the price where taxpayers would break even would be $28.73 a share for AIG and $53.98 for GM s. Currently, AIG's shares are around $25.31 and GM at $24.92. The report states that it could take years until those stock prices rise to the point where taxpayer’s would see a return.
Furthermore, the report indicated that some bailout programs, such as reductions in home foreclosures, will last as late as 2017. Those programs could cost an additional $50 billion or more. This latest report indicates that the age of “No more bailouts, handouts…” as claimed by President Obama in his State of the Union last week, is still a far way off. With taxpayers still owed billions, and the government spending trillions more than it takes in each year, it’s clear that the Administration does not take our nation’s financial outlook very seriously. This was a main concern of Americans who showed up to the polls in November of 2010 and with numbers like these, that’s sure to repeat itself in 2012.