$24 Trillion. That's the estimated amount of loan guarantees, TARP and TILF money handed out, along with the other programs designed to bailout the financial industry.
That's according to the Inspector General, Neil Barofsky. But it's nothing to worry about, according to the AP.
The government's maximum exposure to financial institutions since 2007 could total nearly $24 trillion, or about $80,000 for every American, the watchdog overseeing the federal government financial bailout said Monday.
Many of the programs are backed by collateral and the $23.7 trillion represents the gross, not net, exposure that the government could face. No one has suggested that the full amount, in fact, will be used.
Neil Barofsky, the inspector general for the TARP, said in a report to Congress that Treasury's inaction means taxpayers have not been told what the financial institutions that have received assistance are doing with the money.
MSNBC.
I looked elsewhere for information on this, and didn't find much. HuffPost had this article, but no mention of a possible pricetag of $24 Trillion.
Neil Barofsky, the special inspector general for the Troubled Asset Relief Program (SIGTARP) is set to deliver much anticipated testimony on Tuesday before the House of Representatives. Judging from a look at his prepared remarks -- provided by a congressional office to the Huffington Post -- the message won't be a good one.
Barofsky is set to testify that the Treasury Department, while making improvements since this past spring, continues to operate with far too little transparency when it comes to the handling of the TARP.
In addition, Barofsky provides a numerical and detailed update as to the extent and scope of the financial industry bailout. Treasury, he notes, has created a dozen programs "involving Government and private funds of up to almost $3 trillion." Of the $643.1 billion that Treasury has committed to the TARP $441 billion has actually been spent. The TARP, however, is just one component of the bailout. Finally, through the end of June, SIGTARP has launched 35 criminal and civil investigations into the misuse of taxpayer money.
The only other place I found mention of the $24 Trillion price tag was at the NYDailyNews.
America’s liability under all those bailout plans is $23.7 trillion — yes, that’s trillion — and the government is not doing enough to protect the taxpayers’ money or show them how it’s being spent, the TARP inspector general is set to testify tomorrow.
Neil Barofsky, the special inspector general of the of the Troubled Asset Relief Program, is expected to highlight that staggering number at a hearing chaired by Brooklyn Rep. Ed Towns and his House Oversight Committee, tallying up the potential total should everything turn out poorly for the federal government.
The TARP itself is a $700 billion program, but its potential liabilities are nearly $3 trillion, when you throw in all the guarantees Uncle Sam is making. The ridiculously large figure of nearly $24 trillion comes from toting up all the programs, of which TARP is just one.
It is not likely that things will go so poorly that America will be on the hook for all of that, but Barofsky is also expected to warn of shortcomings.
I'm so glad to hear that things won't "go so poorly" that we'll be "on the hook for all of that." Really, I appreciate the reassurance.
Do you think you could explain to me why we won't be on the hook for all that? I mean, it's kind of a significant figure, for some of us. I'd like to budget my families share, because at $80,000 apiece, it's going to take a little while for my wife and I to come up with the $320,000 for ourselves and our two boys (they're cute, but the little deadbeats just don't seem to understand their responsibility for bailing out Goldman Sachs and ensuring that they get their billions in bonuses). It's good to know that we probably won't have to come up the full $320,000, but I'd still like to know if it's going to be only half of that, or maybe 60%. That'll be so much easier for us to cover, what with having to pay for all that expensive health care insurance that those fiscally irresponsible liberal DFH socialists are forcing down our throats.
Sure will be interesting to see if any of the major media decide to do anything more with this than a short post on their website, or if they will ignore it all together. More likely, they will present it totally out of context, and immediately have some Republican on to complain about fiscally irresponsible the proposed health care bill is.
Hmmmm, health care at $1-1.5 Trillion, TARP and associated programs, $24 Trillion.
Shows you where the balance of power really is, doesn't it?
Update: Thanks to forgore for the following:
U.S. taxpayers may be on the hook for as much as $23.7 trillion to bolster the economy and bail out financial companies, said Neil Barofsky, special inspector general for the Treasury’s Troubled Asset Relief Program.
Barofsky’s estimates include $2.3 trillion in programs offered by the Federal Deposit Insurance Corp., $7.4 trillion in TARP and other aid from the Treasury and $7.2 trillion in federal money for Fannie Mae, Freddie Mac, credit unions, Veterans Affairs and other federal programs.
Bloomberg.