Posts Tagged ‘TARP’

Japan Has Worlds Most Expensive Natural Disaster, US Number 1 Most Expensive Man Made Disaster

March 24, 2011

Japan’s government said the cost of the earthquake and tsunami that devastated the northeast could reach $309 billion, making it the world’s most expensive natural disaster on record.

The extensive damage to housing, roads, utilities and businesses across seven prefectures has resulted in direct losses of between 16 trillion yen ($198 billion) and 25 trillion yen ($309 billion), according to a Cabinet Office estimate Wednesday.

The losses figure is considerably higher than other estimates. The World Bank on Monday said damage might reach $235 billion. Investment bank Goldman Sachs had estimated quake damage would be as much as $200 billion.

Though expensive, this pales in comparison to the world’s largest man made disaster of  $700 Billion the US spent to bail out banks and buy back distressed mortgage backed securities.

 

TARP Money Continues To Leave Taxpayers Blowing In The Wind

October 29, 2010

  WASHINGTON (AP) – The Treasury Department says its bank bailouts are over, but the spending continues.

In a Sept. 22 speech, Treasury Secretary Timothy Geithner said the bailouts “are completely behind us.”

That’s not quite correct. In the final six months in which it could spend money from the Troubled Asset Relief Program, Treasury set aside $243 million for new contracts for law firms, accountants and money managers to help run what’s left of the bailouts – on top of the $529 million already spent on work by staff, private companies and other agencies. Many of the contracts last until 2019, and there’s nothing to stop the government from hiring even more help if it’s needed to chase down the remaining bailout money.

Most of the contracts Treasury awarded recently are for work officials can’t even describe, because it’s not yet needed.

Yet Treasury still has no plan for recapturing investments from the banks that can’t pay dividends or repay their bailouts. That program doesn’t have an end date.

Government will continue to hire workers to track bailout money for projects with no names,dates, or need with no end in site..


US Taxpayer Plays “Skin In The Game” New Global Edition

August 12, 2010

  WASHINGTON (AP) – The $700 billion U.S. bailout program launched in response to the global economic meltdown had a far greater impact overseas than other countries’ financial rescue plans did on the U.S., according to a new report from a congressional watchdog.

Billions of dollars in U.S. rescue funds wound up in big banks in France, Germany and other nations. That was probably inevitable because of the structure of the Treasury Department’s program, the Congressional Oversight Panel says in a new report issued Thursday.

The U.S. program aimed to stabilize the financial system by injecting money into as many banks as possible, including those with substantial operations overseas. Most other countries, by contrast, focused their efforts more narrowly on banks in their nations that usually lacked major U.S. operations.

But the report says that if the U.S. had gotten more data on which foreign banks would benefit the most, the government might have been able to ask those countries to share some of the cost.

“There were no data about where this money was going,” panel chair Elizabeth Warren said in a conference call with reporters on Wednesday. “The American people have a right to know where the money went.”

Poorly conceived and poorly executed  rescue package putting taxpayers at  risk on a  global scale….. Geithner scared of Elizabeth Warren….

Government Take Over of GM, Made Us Shutter

July 19, 2010

The Treasury Department failed to consider the economic fallout when it told General Motors and Chrysler to quickly shutter many dealerships as part of government-led bankruptcies, a federal watchdog found.

A report released Sunday by the special inspector general for the government’s bailout program raised questions about whether the Obama administration’s auto task force considered the job losses from the closings while pressuring the companies to reduce costs.

Treasury didn’t show why the cuts were “either necessary for the sake of the companies’ economic survival or prudent for the sake of the nation’s economic recovery,” said the audit by Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, the $787 billion stimulus program known as TARP.

“Treasury made a series of decisions that may have substantially contributed to the accelerated shuttering of thousands of small businesses,” investigators said.

Those decisions resulted in “potentially adding tens of thousands of workers to the already lengthy unemployment rolls — all based on a theory and without sufficient consideration of the decisions’ broader economic impact,” the report said.

Political decision instead of business decision and the loss of 100,000 jobs… Business as usual….

 

Tuesday Two for One.. Double Your Pleasure

March 16, 2010

The former president of New York’s  Park Avenue Bank, Charles Antonucci, was arrested  Monday on fraud charges, the first person accused of attempting to steal U.S. government bailout funds in the financial crisis. Antonucci made false statements in the bank’s application for $11.2 million from TARP, according to the complaint. Remember Tarp,  Troubled Asset Relief Program, was the $700B quicky bill passed in October 2008. The program gave banks the right to  sell their toxic mortgage- backed securities to the Treasury Department. Since this seemed way  too hard, it was magically changed and  used to buy preferred stocks in 8 banks instead, the old switcheroo. This was overseen  by the Treasury Secretary, Little  Timmy  Geithner. Maybe the courts should get a two- for- one prosecution since neither men followed the law as stated by the terms of the bill.

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