Almost a year to the day after the Treasury
dumpedtens of billions into banks, the heart of the $700
billion bank bailout called TARP is coming to an end. Rest
its soul.
TARP was broken up into several programs, but the main one
-- the segment that injected money directly into banks --
will be euthanized by the end of the year, with no more new
money heading out the door. Another program, an original $100
billion allocation to buy troubled loans from banks, is now
being capped at $60 billion.
This looks good at first glance, but it really isn't
terribly meaningful. Most banks that needed cash already got
what they wanted. It's like cutting off food stamps after you
win the lottery. Big whoop.
What it does do, though, is gives us a better
understanding of TARP's final outlays. Using data from the
bailout's official website, financialstability.gov, here's
roughly where we stand:
Segment
Amount
Money still held by banks Â
$178.9 billion
Homeowners (mortgage modifications)
$27.3 billion
AIG
$69.8 billion
Auto industry
$81.3 billion
TALF(Term Asset-Backed Securities Loan
Facility)
$20 billion
PPIP(Public-Private Investment Program)
$16.7 billion
Already repaid
$72.8 billion Continued... |