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BOY WERE WE SCREWED! Bailout Tally $4.6 TRILLION

BOY WERE WE SCREWED! Bailout Tally $4.6 TRILLION


To think we all lost and keep losing our homes!

Comprehensive Bailout Tally: $4.6 Trillion Spent on the Bailout to Date

Submitted by Mary Bottari on April 1, 2010 – 7:05am. PRWATCH.org

Today, the Real Economy Project of the Center for Media and Democracy (CMD) released an assessment of the total cost to taxpayers of the Wall Street bailout. CMD concludes that multiple federal agencies have disbursed $4.6 trillion dollars in supporting the financial sector since the meltdown in 2007-2008. Of that, $2 trillion is still outstanding. Our tally shows that the Federal Reserve is the real source of the bailout funds.

CMD’s assessment demonstrates that while the press has focused its attention on the $700 billion TARP bill passed by Congress, the Federal Reserve has provided by far the bulk of the funding for the bailout in the form of loans amounting to $3.8 trillion. Little information has been disclosed about what collateral taxpayers have received in return for these loans, sparking the Bloomberg News lawsuit covered earlier. CMD also concludes that the bailout is far from over as the government has active programs authorized to cost up to $2.9 trillion and still has $2 trillion in outstanding investments and loans.

Learn more about the 35 programs included in the CMD tally by visiting our Total Wall Street Bailout Cost Table, which contains links to pages on each bailout program with details including the current balance sheet for each program.

Treasury Department Self-Congratulations Premature

While the Treasury Department has been patting itself on the back for recouping some of the Troubled Asset Relief Program (TARP) funds and allegedly making money off of its aid to Citigroup, the CMD accounting shows that TARP is only a small fraction of the federal funds that have gone out the door in support of the financial sector. Far more has been done to aid Wall Street through the back door of the Federal Reserve than through the front door of Congressional appropriations.

The tally shows that more scrutiny needs to be given by policymakers and the media to the role of the Federal Reserve especially as the Fed has accounted for the vast majority of the bailout funds, yet provides far less disclosure and is far less directly accountable than the Treasury.

Download the Financial Crisis Tracker

In addition to a comprehensive here Wall Street Bailout Table which will be updated monthly as a resource for press and the public, CMD is also making available a Financial Crisis Tracker, a widget that links to the table that can be downloaded to websites and provides up–to-date numbers on the financial crisis and the bailout. The Financial Crisis Tracker shows unemployment rates, housing foreclosure rates and the bailout total on a monthly basis. It is a more accurate measure of how we are doing as a nation than any Wall Street ticker.

* Key Findings

* Wall Street Bailout Table

* Financial Crisis Tracker

Among the Key Findings:

1) $4.6 Trillion in Taxpayer Funds Have Been Disbursed

All together, $4.6 trillion of taxpayer funds have been disbursed in the form of direct loans to Wall Street companies and banks, purchases of toxic assets, and support for the mortgage and mortgage-backed securities markets through federal housing agencies. This is an astonishing 32% of our GDP (2008) 130% of the federal budget (FY 2009).

2) TARP vs. Non-TARP Funding

Most accountings of the financial bailout focus on the Troubled Asset Relief Program (TARP), enacted by Congress with the Emergency Economic Stabilization Act of 2008. However, a complete analysis of the activities of all the agencies involved in the bailout including the FDIC, Federal Reserve and the Treasury reveals that TARP, which ended up disbursing about $410 billion was less than a tenth of the total U.S. government effort to contain the financial crisis. TARP funds only account for about 20% of the maximum commitments made through the bailout and less than 10% of the actual funds disbursed.

3) The Federal Reserve has Played the Primary Role in the Bailout

The Federal Reserve has provided by far the bulk of the funding for the bailout in the form of loans — $3.8 trillion in total. Little information has been disclosed about what collateral taxpayers have received in return for many of these loans. Bloomberg News is suing the Federal Reserve to make this information public. On March 19, 2010 Bloomberg won its suit in the Second Circuit Court of Appeals, but it is not clear if this case will continue to be litigated to the Supreme Court.

4) Federal Support for the Housing Market is on the Rise

A key component of the bailout has been the federal support for mortgages and mortgage-backed securities, primarily through the Federal Reserve. All together, the government has disbursed more than $1.5 trillion in non-TARP funds to directly support the mortgage and housing market since 2007.

Posted in bernanke, concealment, conspiracy, corruption, FED FRAUD, federal reserve board, S.E.C., scamComments (0)

New Obama Mortgage Plan: A Backdoor Bank Bailout

New Obama Mortgage Plan: A Backdoor Bank Bailout


  • MARCH 30, 2010, 3:38 P.M. ET WSJ
  • New Obama Mortgage Plan: A Backdoor Bank Bailout

    We are looking at tens of billions of taxpayer dollars again being funneled to the very banks behind the mortgage crisis.

    By MARK A. CALABRIA

    From the Cato Institute

    Today President Obama announced an expansion and modification of his Home Affordable Modification Program (HAMP). While one can debate the merits of incentives to keep unemployed families in their homes while they search for jobs — I personally believe this will more often than not keep those families tied to weak labor markets — what should be beyond debate is the various bailouts to mortgage lenders contained in the program’s fine print.

    Several of the largest mortgage lenders, including some that have already received huge bailouts, carry hundreds of billions worth of second mortgages on their books. As home prices have nationally declined by almost 30 percent, these second mortgages are worthless in the case of a foreclosure. Second mortgages are usually wiped out completely during a foreclosure if the price has decreased more than 20 percent. Yet the Obama solution is now to pay off 6 cents on the dollar for those junior liens. While 6 cents doesn’t sound like a lot, it is a whole lot more than zero, which is what the banks would receive otherwise. Given that the largest lenders are carrying over $500 billion in second mortgages that may need to be written down, we are looking at tens of billions of taxpayer dollars again being funneled to the very banks behind the mortgage crisis.

    If that bailout isn’t enough, the new plan increases payments to lenders to not foreclose, all at the expense of the taxpayer. While TARP was passed under Bush’s watch, and he rightly deserves blame for it, Obama continues these bailouts in the name of avoiding a much needed correction in our housing market.

    Posted in foreclosure fraudComments (0)

    TARP Fraud! An (Alleged) First in the Annals of Crime

    TARP Fraud! An (Alleged) First in the Annals of Crime


    Yes We Know This Was Fraud From Day 1

    By Ashby Jones The Wall Street Journal

    March 15, 2010, 2:58 PM ET

    Here’s a story that elicits within us more than a whiff of sympathy for that big band of brothers and sisters we like to collectively call the U.S. Taxpayer.

    After all, it’s the taxpayer that’s largely responsible for funding TARP, enacted after the financial meltdown to enable the government to purchase toxic or illiquid assets from banks and other financial institutions.

    So trying to rip off the TARP program is like, well, going for the collective front pocket of the nation in an attempt to pull out some change. The gall.

    On Monday, TARP-related allegations were lodged by federal prosecutors against Charles J. Antonucci Sr., the former president and chief executive of The Park Avenue Bank in New York. Among the charges: wire fraud, bank bribery, embezzlement and, yes, attempting to defraud the TARP program. Click here for the WSJ story, from Chad Bray; here for the criminal complaint.

    “These charges are what they are,” said Stillman, Friedman & Schechtman’s Charles Stillman, a lawyer for Antonucci. “We’re going to study them and consider what our appropriate response to the charges will be.”

    Bray reports that the allegations are one of the first publicly announced cases of fraud against TARP. Prosecutors allege that Antonucci engaged in several schemes to defraud the bank and its regulators, including making false statements in connection with an application by the bank for more than $11 million in TARP funds in 2008.

    He later withdrew his application, after the bank regulator said it would not recommend the TARP application for approval. But when asked to explain his withdrawal, according to this Q&A with Bank Info Security, Antonucci answered:

    It was two things: Nobody really knows what the rules are going to be in terms of those who take and utilize the TARP money . . . . And secondly, there is market perception that if you take TARP money, that you are now a bad bank, which is a perception that nobody wants whether you are or you aren’t.
    Antonucci was president and chief executive of the bank from June 2004 until his resignation in October 2009.

    Posted in foreclosure fraudComments (0)


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