January 26th, 2012 | 
Author: Bailed-Out Companies Pressured TARP Pay Czar To Keep …
www.huffingtonpost.com1/24/12
The official overseeing executive pay for bailout firms limited cash compensation and made some reductions in pay, but still approved compensation packages in the millions, the TARP (Troubled Asset Relief Program) inspector general said in the report. Former U.S. pay … In Mexico in the mid-'90s Wall Street engineered a currency coup that tripled the debt owed by small businesses and family farms and also allowed for them to be massively ratejacked on top of it.
Taxpayers Still on the Hook for $133B from Bailouts | Nanavaty …
www.nndcpa.com1/26/12
The federal overseer of the government's bank bailout program says taxpayers are still owed $132.9 billion on investments in 458 bailed-out banks and companies, including failed insurer American International Group (AIG: 25.31, 0.00, 0.00%), General Motors (GM: 25.08, … SIGTARP now warns TARP could be cemented in the government's architecture as a permanent bailout program, even though the public initially “perceived TARP as primarily a bank bailout.” …
Government watchdog Christy Romero says that U.S. taxpayers are still owed $132.9 billion by companies that received bailouts, and adds that much of it will never be recovered.
TARP – Troubled Asset Relief Program
The bailout debt which was launched at the height of the financial crisis in September 2008 will continue for years, says a report issued Thursday January 26, 2012 by Christy Romero, who is the acting special inspector general for the $700 billion bailout.
What’s worse is that some bailout programs, such as the one to help homeowners avoid foreclosure by reducing mortgage payments, will continue into late 2017, and they will cost the government an additional $51 billion, plus or minus a few billion dollars.
The report also notes that the roller coaster stock market slowed the Treasury Department’s efforts to sell off its stakes in 458 bailed-out companies, which include insurers, American International Group Inc., General Motors Co. and Ally Financial Inc.
The Present Share Prices And Needed Share Prices
AIG’s shares closed Wednesday at $25.31, while GM ended at $24.92 and Ally isn’t publicly traded.
They were $28.73 a share for AIG, and $53.98 for GM so it could take a long time for the market to rebound to that level.
The report concludes that it will also be challenging for the government to get out of the 458 companies as the market remains volatile and banks struggle keep afloat in the tough economy.
The Troubled Asset Relief Program, or TARP
Congress authorized $700 billion for the bailout of financial companies and automakers and $413.4 billion was paid out.
So far, the government has recovered about $318 billion.
The Treasury’s Response
Treasury spokesman Matt Anderson said the department,
"has made substantial progress winding down TARP and has already recovered more than 77% of the funds disbursed for the program, through repayments and other income".
"We’ll continue to balance the important goals of exiting our investments as soon as practicable and maximizing value for taxpayers".
To be fair however, it needs be said that the government has recovered its investments in four of the companies that received the most aid:
Bank of America Corp., Citigroup Inc., Chrysler Group LLC and Chrysler Financial, which is the automaker’s old lending arm.
Criminal Activity
In Romero’s quarterly report to Congress, she said her office,
"has uncovered and prevented fraud related to TARP".
Investigations by her office have resulted in criminal charges against ten people and three convictions.
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Posted in AIG, American International Group, consumer, deficits, federal debt, politics, stimulus, US economy
The administration now admits taxpayers will lose $14 billion in the auto bailout. That may leave the management of these companies feeling they need to repay their political patrons.
That’s what happens when government gets in bed with big business.
And it stinks.