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Paulson's Piggy Bank Running Low
December 04, 2008 7:17 PM
ABC News' Charles Herman reports: Could the $700 billion TARP funds be used to help the auto industry? The White House is not in favor of that idea.
Another question: Is there $34 billion left in the first batch of funds provided to the Treasury Department? On the surface, no.
Since October, Treasury Secretary Henry Paulson has had at his disposal $350 billion, half of the total TARP funds. To date, he has used or committed $330 billion of those funds.
- $250 billion available to financial institutions. As of 11/25/08, $161.5 billion has been provided to 53 institutions.
- $40 billion for AIG. AIG received the money on 11/25/08.
- $20 billion in additional funds for Citigroup announced last week.
- $20 billion for the creation of a “consumer asset backed securities market established by the Federal Reserve Bank of New York.”
That leaves a $20 billion hole for a $34 billion peg.
To make funds available to the auto industry, Paulson could take some money from the “financial institutions” pot, but the impact on financial institutions, the credit market and the stock market if less money is available is unclear.
Requesting the remaining $350 billion of the $700 billion TARP funds could be tricky. Paulson has indicated that he is not inclined to draw down those funds. Then again, that might change if the Treasury Department decides it needs money to fund a program to reduce interest rates. And Congress might not be inclined to let him have the money.
For Paulson to receive the remaining half of the TARP funds, the president would have to provide written notice to Congress that the treasury secretary needs the money. Unless Congress issues a joint resolution of disapproval within 15 days of receiving that notice, the money will be his to spend.
December 4, 2008 | Permalink | User Comments (15)
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This is proving to be another crime against the people. Freeze everything until after Obama takes over in January. Maybe then, we'll have some honest folks running the show.
Posted by: james everett | Dec 4, 2008 7:56:11 PM
It's NOT Paulson's piggy bank! It's OUR piggy bank, the American people! And we are being robbed!
Posted by: POTO | Dec 4, 2008 8:01:02 PM
You aren't being robbed, your children are (as they have been for years). Borrowing from China instead of raising taxes so Americans can have big TVs.
Posted by: RyanN | Dec 4, 2008 8:20:32 PM
Paulson covered his friends losses at Goldman Sachs, he could give a darn for anybody else, not to mention the (Cough!) taxpayers.
Posted by: please! | Dec 4, 2008 8:21:40 PM
Isn't that a great name for it? Piggy bank! Perfect.
Posted by: LongT | Dec 4, 2008 8:38:15 PM
Simple godly honesty is gone from the lives of a lot of leaders in this country and the world. From government, to business, to religious and civic, leaders are now drunk with greed, and the planet is swimming in the salty sea of materialism. The day of reckoning has arrived and most have been found wanting. We need to re-establish the rule of punishment for corruption in this country. This is what has happened on Wall Street and many other institutions, the people need to stand up and march for justice in this country. Who thought that human rights activists were irrelevant -- think again. We are being robbed and it must stop now, before there is a civil war.
Posted by: Frank | Dec 4, 2008 9:03:32 PM
What a supreme crock of sh**t this entire program has been! Where has the money gone and when will we see the return? Mr. Paulsen, can you answer a simple question?
Posted by: roscoe02 | Dec 4, 2008 10:56:26 PM
james everett --- Pauson's right hand guy in all of this is Obama's pick in the Treasury dept.--- so nothimg will change. They're all in it together!
Posted by: roscoe02 | Dec 4, 2008 10:59:52 PM
POTO -- But it is Pauson's Piggy Bank--- Congress gave him the Piggy Bank--- without any strings--- now I think they (Congress) all have a sore a$$ because of their decision.
Posted by: roscoe02 | Dec 4, 2008 11:03:39 PM
WHERE IS THE OVERSIGHT?
Posted by: Dan | Dec 5, 2008 9:49:34 AM
The Bush Admin put a Wolf (Paulson) in change of the Sheep (the 700 Billion) to pay the Crooks (Wall Street). Wall Streets top guys fixed the books so they could get those Millions in Bonus. Even the mid management makes 3 to 5 times more than the average Auto worker. Who should benefit from the Bail out, People who work hard for a living or People who steal from the American People like Wall Street has done?
Henry Merritt "Hank" Paulson Jr. (born March 28, 1946) is the United States Treasury Secretary and member of the International Monetary Fund Board of Governors. ****** He previously served as the Chairman and Chief Executive Officer of Goldman Sachs.***** Goldman Sachs one of the crooked companies that took Pensions from the retired and those soon to retire.
Posted by: USCITIZEN_04 | Dec 5, 2008 5:06:04 PM
Hey Dan the over site person is waiting to be confirmed in the senate which one Senator is blocking, hoping Paulson can dish out the remaining 700 billion out to his buddies on Wall Street. Why does the Auto companies have to come up with a plan when Wall Street was just handed the money no Questions asked or restrictions in place?
Posted by: US Citizen | Dec 5, 2008 5:09:30 PM
I am so tired of Paulson's lack of creative ideas. When will he be replaced? He and Bernanke need to fade away into the sunset.
Posted by: Senior | Dec 8, 2008 9:51:12 AM
I am so tired of Paulson's lack of creative ideas. When will he be replaced? He and Bernanke need to fade away into the sunset.
Posted by: Senior | Dec 8, 2008 9:51:14 AM
Give everyone that buys a new American made car a $12,000 incentive check. Tax everyone that has a gas-guzzling SUV $4,000. Tax everyone $5,000 that has or buys a foreign made car. And finally, tax everyone $10,000 that voted for bush/cheney once, and $20,000 if you voted for bush/cheney twice.
Posted by: pt | Dec 9, 2008 2:49:49 PM
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