Obama claims 'We got back every dime' of bailout money on same day CBO reports $24 billion loss

By Catholic Online (NEWS CONSORTIUM)
10/16/2012
Catholic Online (www.catholic.org)

Troubled Asset Relief Program tells entirely different tale

President Barack Obama declared last week that "we got back every dime we used to rescue the financial system." However -- according to the Congressional Budget Office, the government will lose about $24 billion on the bailout.

TARP is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector that was signed into law by U.S. President George W. Bush on October 3, 2008.

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LOS ANGELES, CA (Catholic Online) - "We got back every dime we used to rescue the financial system, but we also passed a historic law to end taxpayer-funded Wall Street bailouts for good," Obama declared in Miami last week.

The Congressional Budget Office, or CBO, based on figures from Obama's own Office of Management and Budget gives an entirely story.

"The cost to the federal government of the TARP's transactions (also referred to as the subsidy cost), including grants for mortgage programs that have not yet been made, will amount to $24 billion," the CBO reported, which coincidentally was released on the same day Obama spoke.

The Troubled Asset Relief Program or TARP is the formal name of the government's financial bailout program passed in October 2008.

TARP is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector that was signed into law by U.S. President George W. Bush on October 3, 2008. It was a component of the government's measures in 2008 to address the subprime mortgage crisis.

CBO said that the cost of TARP "stems largely from assistance to American International Group (AIG), aid to the automotive industry, and grant programs aimed at avoiding home mortgage foreclosures." The CBO also noted that the losses will be so large they will overshadow the financial gains the government will reap from bailing out other large financial institutions.

CBO has reported currently that $65 billion in TARP funds remain outstanding.

� 2012, Distributed by NEWS CONSORTIUM.

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Keywords: TARP, CBO, mortgages, relief, Obama

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1 - 2 of 2 Comments

Jonathan
6 months ago
Obama was talking about every dime we used to rescue the FINANCIAL SYSTEM. In other words, all the TARP money that went to banks. And we did get every bit of that money back, with a profit. He never said we got all the TARP money back - that's still a work in progress and everyone knows it. You're just twisting his words to make it look like he said something that he didn't.
vance
7 months ago
This is what you can expect from a liar. This guy has no soul or conscience. He can lie through his teeth with that evil grin on his face. There has been many financial reports that have illustrated that GM has lost money. The Chevy Volt is a total disaster and a huge money loss. If Romney wins, you can expect the Volt will get tossed.

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