Obama claims 'We got back every dime' of bailout money on same day CBO reports $24 billion loss
Troubled Asset Relief Program tells entirely different tale
President Barack Obama declared last week that "we got back every dime we used to rescue the financial system." However -- according to the Congressional Budget Office, the government will lose about $24 billion on the bailout.
TARP is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector that was signed into law by U.S. President George W. Bush on October 3, 2008.
The Congressional Budget Office, or CBO, based on figures from Obama's own Office of Management and Budget gives an entirely story.
"The cost to the federal government of the TARP's transactions (also referred to as the subsidy cost), including grants for mortgage programs that have not yet been made, will amount to $24 billion," the CBO reported, which coincidentally was released on the same day Obama spoke.
The Troubled Asset Relief Program or TARP is the formal name of the government's financial bailout program passed in October 2008.
TARP is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector that was signed into law by U.S. President George W. Bush on October 3, 2008. It was a component of the government's measures in 2008 to address the subprime mortgage crisis.
CBO said that the cost of TARP "stems largely from assistance to American International Group (AIG), aid to the automotive industry, and grant programs aimed at avoiding home mortgage foreclosures." The CBO also noted that the losses will be so large they will overshadow the financial gains the government will reap from bailing out other large financial institutions.
CBO has reported currently that $65 billion in TARP funds remain outstanding.
© 2012, Distributed by NEWS CONSORTIUM.
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: TARP, CBO, mortgages, relief, Obama
Rate This Article
Leave a Comment
More Politics & Policy News
- Special Report from the Virginia Republican Nominating Convention: A Time To Choose - Life
- Lois Learner pleads the 5th. Was she the crook behind it or was she following orders from higher up?
- Sick of deception! Democrat threatens IRS with appointment of special prosecutor
- FOURTH OBAMA SCANDAL: Did HHS Secretary Kathleen Sebelius solicit funds for nonprofit group?
- Carney still insists nobody told Obama about IRS investigation
- State Department insider warns more whistle-blowers to come on Benghazi scandal
- Hillary better be prepared, House Oversight and Government Reform chairman Darrell Issa says
- E.W. Jackson Wins Nomination as Republican Candidate for Lieutenant Governor of Virginia
- 'Planned Parenthood has been far more lethal to black lives than the KKK ever was!' Virginia GOP nominee says
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?