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Cost of Bailouts Continues to Decline
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The government bailout of Fannie and Freddie was expected to cost hundreds of billions of dollars according to some estimates during the financial crisis in 2008-2009. The costs peaked at $187 billion in 2011. The transfer of $59.4 billion by Fannie Mae to the U.S. Treasury in 2013 lowers the net cost to $60.5 billion. The net cost of the Troubled Asset Relief Program or TARP has decreased to less than $23 billion. At one point the cost of TARP reached $419 billion for the U.S. Treasury. The government sold the last of its shares in private insurance company AIG and made $22.7 billion in gains. Treasury and Fed loaned $182 billion to AIG and at one point owned 90% of the company. Chrysler exited the TARP bailout program in 2011 at a net cost to the U.S. government of $1.2 billion. So far in May 2013 the GM bailout cost $19.6 billion, this would come down to about $11.82 billion if the U.S. government sold its GM shares at the price in May 2013. The U.S. Federal Reserve says it has not lost money in any of its emergency lending facilities, even though some loans are outstanding. The FDIC says its fees from rescue programs exceed losses.
The Auto Industry Bailout and Mitt Romney
01/06/2008
Mitt Romney opposed the auto industry bailout. An article by Romney with the title "Let Detroit Go Bankrupt," appeared in the New York Times at the time of the bailout. Auto executive Bob Lutz says he was profoundly disappointed by Romeny's position, as the situation was at a point where government loans were necessary. Auto executives see the vindication of their position in the recovery of Chrysler, GM and Ford Motor. In a bit of irony Romney, who is from Michigan, announced his candidacy for the 2008 presidential election at the Ford Museum in Dearborn. GM and Chrysler went into bankruptcy, but this was a planned bankruptcy, with the support of the U.S. government and a pathway set with loans and conditions so that would lead to eventual recovery. The fear was that a chaotic bankruptcy process would permanently impair the American auto manufacturing industry- and the planned bankruptcy with government conditions and loans was meant to avert this and still allow shedding or restructuring of burdensome obligations- as this way buyers would still have confidence to buy automobiles from GM and Chrysler. Auto executives point out that the private markets had already shut out GM and Chrysler from financing. Retired GE executive supported a planned bankruptcy with government help, because of the importance of the auto industry to the U.S. economy, in the Nov. 18, 2008 issue of Business Week.
Grouped Articles
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
New York Times 12/27/2011
U.S. Remaining Stake in General Motors
Wall Street Journal 12/10/2013
U.S. Car-Making Boom? Not for Auto-Industry Workers
Wall Street Journal 03/24/2015
Bailout Stand Trails Romney in Car Country
New York Times 02/19/2012
Dow Chemical's CEO on How to Revive Manufacturing
Wall Street Journal 02/23/2012
U.S. Federal Reserve lending during the 2008 Bank Bailout
01/20/2009
Grouped Articles
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
Banks Ramped Up Fed Lending After Bailout Vote Failed
Wall Street Journal 12/02/2010
Wall Street Journal 12/02/2010
Hedge Funds Tapped Rescue Program
Wall Street Journal 12/02/2010
Liquidity Facility Was Lifeline for Wall Street
Wall Street Journal 12/02/2010
Moral Hazard, Thy Price Is $3.3 Trillion
Wall Street Journal 12/02/2010
The cost to the U.S. government and taxpayers for the auto industry bailout
06/02/2011
Grouped Articles
New York Times 04/13/2013
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
U.S. Remaining Stake in General Motors
Wall Street Journal 12/10/2013
Wall Street Journal 06/02/2011
On the Road to Detroit's Big Pileup
New York Times 10/01/2011
New York Times 01/26/2012
The U.S. government's recovery of funds used to bailout insurers, banks, Fannie, Freddie, and auto companies
11/16/2010
The US government still has a ways to go to recover funds from the auto bailouts. AIG is still costly. Fannie and Freddie are an entirely different story, a debacle with huge additional funds needed.
Grouped Articles
Freddie's Profit Soars on Housing Rebound
Wall Street Journal 05/08/2013
Fannie Mae to pay $59.4B to Treasury - The Washington Post
Washington Post 05/09/2013
Fannie Chief: Payout Must Not Delay Revamp
Wall Street Journal 05/10/2013
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
Fannie, Freddie Payments Nearly Match Aid
Wall Street Journal 11/08/2013
White House Rejects Fannie-Freddie Recapitalization Plans
Wall Street Journal 11/23/2013
TARP (Troubled Asset Relief Program) Inspector General's Report
01/17/2009
The Barofsky Report on the risks remaining in the financial system in the US in 2011-2012.
Grouped Articles
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
Plan to Help Banks Clear Their Books Is Halted
New York Times 06/04/2009
Citi Still Too Big to Fail, TARP Official Says
New York Times 01/13/2011
Neil Barofsky's Journey Into a Bailout Buzz Saw
New York Times 07/21/2012
In Search of One Bold Stroke to Save the Banks
New York Times 01/17/2009
The recovery in credit markets, with credit markets returning to normal in June 2009.
01/17/2009
Distressed debt had reache a 19 percentage point premium over comparable Treasurys in December 2008 at the height of the credit crisis. On June 5, 2009, this premium had dropped slightly below the benchmark of 10%, according to S&P data. Banks were able to raise capital in these markets, and some were considering returning TARP money to the government.
Grouped Articles
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
Plan to Help Banks Clear Their Books Is Halted
New York Times 06/04/2009
Wall Street Journal 05/01/2009
S&P Report Sees Less 'Distress' As Spreads Dip Below Benchmark
Wall Street Journal 06/08/2009
Wall Street Journal 07/27/2009
Recession Spells End for Many Family Businesses
Wall Street Journal 10/06/2009
GM (General Motors) and the U.S. government bailout
11/02/2010
Grouped Articles
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
U.S. to Sell Rest of GM Stake by Year-End
Wall Street Journal 11/22/2013
U.S. Remaining Stake in General Motors
Wall Street Journal 12/10/2013
Wall Street Journal 11/02/2010
GM Could Be Free of Taxes for Years
Wall Street Journal 11/03/2010
Wall Street Journal 04/19/2011
Higher U.S. tax revenues, payback of bailout loans in 2013 and the debt ceiling
05/09/2013
Grouped Articles
Wall Street Journal 05/09/2013
Fannie Mae to pay $59.4B to Treasury - The Washington Post
Washington Post 05/09/2013
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
The return of the U.S. government's bailout money by AIG
08/01/2012
Grouped Articles
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
Wall Street Journal 06/16/2015
In A.I.G. Case, Surprise Ruling That Could End All Bailouts
New York Times 06/15/2015
Ex-A.I.G. Chief Wins Bailout Suit, but Gets No Damages
New York Times 06/15/2015
AIG Pushing Plan for Independence
Wall Street Journal 08/01/2012
Government Bailout of AIG
02/24/2009
The burgeoning cost of bailing out AIG. The cost is approaching $200 billion and is the costliest corporate bailout so far.
Grouped Articles
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
Wall Street Journal 06/16/2015
In A.I.G. Case, Surprise Ruling That Could End All Bailouts
New York Times 06/15/2015
Ex-A.I.G. Chief Wins Bailout Suit, but Gets No Damages
New York Times 06/15/2015
AIG Seeks to Ease Its Bailout Terms
Wall Street Journal 02/24/2009
Any Takers for AIG's Asian Arm?
Wall Street Journal 02/25/2009
Recapitalization of Banks in the U.K. and the U.S.
09/29/2008
With Gordon Brown's initiative in the UK and Secretary Paulson shifting TARP1 focus to injecting capital into struggling banks, the focus shifted to this in the last quarter of 2008.
Grouped Articles
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
Barclays Plans to Issue New Shares
Wall Street Journal 07/29/2013
Barclays Emerges From the Doghouse
Wall Street Journal 07/29/2013
Barclays Aims to Fill Expensive Hole
Wall Street Journal 07/30/2013
Plan to Help Banks Clear Their Books Is Halted
New York Times 06/04/2009
European Regulators Move Swiftly to Rescue Two Lenders
New York Times 09/29/2008
The US TARP program and recovery of the governments investment in TARP.
01/17/2009
Grouped Articles
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
Plan to Help Banks Clear Their Books Is Halted
New York Times 06/04/2009
Bank Bailouts Approach a Final Reckoning
Wall Street Journal 12/20/2014
BusinessWeek 09/30/2010
In Search of One Bold Stroke to Save the Banks
New York Times 01/17/2009
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