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You are watching: Did the banks repay the bailout money
On the campaign trail, president Barack Obama has talked much an ext of the bailouts because that auto carriers than their financial institution brethren. But, much from Detroit, the president elevated the problem of the financial institution bailouts critical week in new Hampshire.Speaking prior to a crowd of around 6,000 voters in Manchester, N.H., Obama assured supporters that of all the fiscal issues facing the nation, the bank bailouts space no longer amongst them."We got earlier every dime supplied to rescue the banks," that told the group gathered Oct. 18 in win Park. "We made that happen."As the this month, 4 years have actually passed due to the fact that federal legislator salvaged few of the nations largest financial institutions with the Emergency financial Stabilization plot of 2008. But, now, the inquiry is, how much the the money has actually the government received back?We made decision to crunch the numbers.In past rulings, gendergeek.org has actually looked into statements around the auto market bailout, and also last month, we ruled greatly False on a insurance claim from former President bill Clinton’s that the total bailout program has earned a profit. But, Obama’s claim about the bank bailouts, specifically, seemed to be worth a fresh look.To start, we got to out come the Obama campaign, which directed us first to the U.S. Treasury, i m sorry releases day-to-day updates top top the momentary Assets Relief Program.The Emergency financial Stabilization Act, which created the TARP, initially available up come $700 exchange rate to banks, auto companies, insurance money agencies and also mortgage lenders, among other groups. In 2010, congress amended the regulation to limit the spending to $475 billion.Now, four years later, lawmakers have thus far dispersed $466 billion of the total, according to the Treasury, and, of that total, about $370.4 billion has actually been returned, including $41.9 exchange rate from interest and also dividends, amongst other income sources.But, of those the totals, the financial institution payments that the president referenced are just a portion. That the $466 exchange rate distributed, about $245.2 billion have actually gone to banks, both national and also local. And, together of Oct. 18, the work of the president’s speech, the federal government had take away back around $266.7 billion, according to the treasury count-- around $21.5 billion more than the early investment."TARP’s bank programs have already earned a significant profit because that taxpayers," Matthew Anderson, a Treasury room spokesman, wrote in an email to gendergeek.org NH.But, that complete doesn’t necessarily mean the financial institutions have paid ago in full. The treasury report shows that, that the $245.2 billion disbursements, $232.9 been have actually been repaid. The $33.8 billion difference in between the repayments and the total cash collected has come through interest, dividends and also other revenue sources.These numbers different slightly from those report by ProPublica, a Pulitzer-winning investigative group, which monitor the federal numbers on that is Bailout Tracker.ProPublica, which categorizes the payments differently, reports that financial institutions have changed $223.9 billion, which, along with $31.9 billion gathered in interest various other revenues, has left the government with a $19.6 exchange rate gain.But, the allude is the same, detailed Paul Kiel, who authors the Bailout Tracker."Essentially, the treasury has realized a benefit on the bank part of the TARP investments," Kiel wrote last week in an email message.Those profits might rise also higher. The treasury, which purchased share from 707 banks, tho holds investments in about 280 that them. But, if we broaden the definition, as ProPublica does, to encompass investment agencies and also credit card companies, among other gaue won institutions, more than 400 providers still have actually debts impressive with the government, Kiel created in a September blog post.Most of these banks, however, are small institutions who space struggling to remain afloat, Kiel wrote. That the 400-plus, 162 have actually fallen behind on their dividend payment to the treasury, he wrote, and, according to a in march report by the U.S. Federal government Accountability Office, 130 banks were contained on the government’s perform of "problem banks," demonstrating "financial, operational, or managerial weakness that endangered their continued financial viability.""While repayments, dividends, and also interest from organizations participating ... Have exceeded the program’s initial investment disbursements, the number of missed payments has increased over the life the the program," government officials composed in the GAO report. "Institutions that proceed to miss out on payments and problem organizations may have an obstacle ever fully repaying your … investments."Our ruling:Not every one of the financial institutions who received TARP money have repaid the loans.
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In fact, 400-plus banks are quiet on the government’s red perform -- more than have actually completed the payments -- and, follow to the GAO, some might never pay the money back.But, the fact remains, because of interest, dividends and also other revenue streams, the government has received an ext money back ($266.7 billion, follow to the Treasury) 보다 it handed out to banks under the bailout law ($245.2 billion). We rate this claim Mostly True.