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Just How Much Bailout Money Is Left?

April 01, 2009 4:02 PM

ABC News’ Charles Herman reports: Congress provided $700 billion to the Treasury to stabilize the financial system through the Emergency Economic Stabilization Act. 

As of March 27, the Treasury had announced programs with a maximum total funding of $667.4 billion (leaving $32.6 billion). 

George Stephanopoulos asked Treasury Secretary Tim Geithner Sunday on “This Week” how much money the department had left. 

"George, we have roughly $135 billion left of uncommitted resources," Geithner said. 

As this was the secretary’s first public announcement about the remaining TARP funds, the Government Accountability Office – GAO -- sat down Monday and crunched the numbers and reviewed them with Treasury and found Treasury’s projected use of funds stood at $590.4 billion.  That means $109.5 billion remains to be spent.

The $25 billion difference between the GAO figure and Secretary Geithner comes from whether or not banks return the money they have already received.  Geithner told Stephanopoulos, "Now that, that estimate includes a judgment, a very conservative judgment, about how much money is likely to come back from banks that are strong enough not to need this capital now to get through a recession. But that's a reasonably conservative estimate. And it gives us, and this is very important, substantial resources to move ahead with this broad based sweep of initiatives to help get the financial system back in the business of providing credit.”

Yesterday, for the first time, three banks returned the money they had received through the TARP program,  giving back a total of $310 million.

So Geithner believes the amount available is larger, while those overseeing the Treasury’s implementation of the program hold to the figure $590.4 billion. 

Whether it’s $32.6 billion, $109 billion or $135 billion, will it be enough for the banks and the auto industry and whatever else needs financial assistance?

"We'll cross that bridge when we come to it in terms of whether we need additional resources,” Geithner said Sunday.  “And, of course, if we come to that point, we'll go to the Congress and give them the strongest case possible and help them understand why this'll be cheaper over the long run to move aggressively."

FINANCIAL STABILITY PLAN FUNDS (nee TARP) as of March 30

To date, $667.4 billion committed of the $700 billion, $109.6 billion remaining.

--  $218 billion available to financial institutions (previously $250 billion).  As of 3/30/09 banks had received $198.8 billion

--  $40 billion for AIG.  AIG received the money on 11/25/08.

--  $20 billion in additional funds for Citigroup (announced 11/23/08, provided 12/31/08)

--  $5 billion committed to any potential losses from Citigroup announced on 11/23/08

--  $45 billion for Term Asset-Backed Securities Loan Facility (previously $100 billion)

--  $5 billion to GMAC on 12/29/08

--  $1 billion for GM related to GMAC on 12/29/08

--  $9.4 billion for GM on 12/31/08 ($4 billion that day and $5.4 billion on 1/16/09)

--  $4 billion to Chrysler on 1/2/09

--  $4 billion to GM promised on 2/17/09 (subject to meeting certain conditions)

--  $20 billion to Bank of America promised (1/16/09)

--  $7.5 billion committed to any potential losses from Bank of America (1/16/09)

--  $1.5 billion loan to a special purpose entity created by Chrysler Financial (1/16/09)

--  $50 billion for Homeowner Affordability and Stability Plan ($25 Freddie/Fannie)

--  $30 billion to AIG (3/2/09)

--  $15 billion SBA loans under the Consumer and Business Lending Initiative to improve terms for securities backed by SBA loans in the TALF (3/16/09)

--  $5 billion Auto Supplier Support Program (3/19/09)

--  $100 billion for Public Private Initiative Fund (3/23/09)

For the latest click here: http://www.financialstability.gov/docs/transaction_report_03-30-2009.pdf

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