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| Title: FACTBOX: Where has the U.S. bailout money gone? |
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The new commitments leave the U.S. Treasury Department's financial rescue fund with $127.92 billion in unallocated resources following repayments. Following is an outline of funds spent or pledged thus far from the U.S. bailout fund, which started in October 2008 with $700 billion. -- An unspecified amount pledged to recapitalize some of the country's largest banks, if needed, following regulatory "stress tests" in May. Regulators required 10 of the 19 banks tested to raise a combined $74.6 billion. -- The Treasury initially allotted $100 billion to seed its public-private plan to buy up to $500 billion worth of toxic assets. Although this allocation was not officially reduced, the Treasury scaled back the program to pledge $30 billion in support to nine public-private funds to invest in legacy mortgage securities. -- In its latest transaction report, the Treasury said it had net investments of $134.08 billion under its original Capital Purchase Program, which was initially pegged at $250 billion. The net figure reflects bank repayments of $70.17 billion. -- $50 billion pledged to reduce mortgage foreclosures by providing incentives to lenders and servicers to modify loans. It has allocated $18.74 billion in potential incentives to 31 firms so far. -- $20 billion investment in Citigroup as part of a package in which the government agreed to share in losses on $301 billion of assets. In addition, the Treasury has disbursed $5 billion as part of its second-loss guarantee. The $20 billion is in addition to $25 billion disbursed as part of the Capital Purchase Program. -- $20 billion investment in Bank of America as part of a package in which the government agreed to share in losses on $118 billion of assets. In addition, the Treasury has pledged to cover up to $7.5 billion in potential losses as part of a second-loss guarantee. The $20 billion is in addition to $25 billion disbursed as part of the Capital Purchase Program. -- $69.84 billion preferred stock investment in troubled insurer American International Group. This was reduced by $165 million from an earlier commitment, representing the amount of controversial bonuses paid by AIG in March. -- A net $77.83 billion remains invested in the U.S. auto industry, including post-bankruptcy loans to General Motors Corp and Chrysler Holding LLC and a $12.5 billion investment in GMAC LLC. So far, Chrysler Holding, Chrysler Financial and GM have repaid $2.14 billion in loans. The Treasury has pledged an additional $3.5 billion in support for auto suppliers. -- $20 billion has been shifted to a special purpose vehicle to cover potential losses on $200 billion in lending under the Fed's TALF. Treasury officials say they intend to provide an additional $35 billion to enlarge this program for lending against recently originated securities. When considered in conjunction with the $25 billion being set aside to expand TALF to cover older securities, the Treasury has said it intends to commit $80 billion to TALF. -- $15 billion pledged to purchase securities backed by Small Business Administration loans. (For details on money already disbursed and recipients, see: here) Full article |
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