Monday, November 24, 2008
Containing the Financial Crisis
What the U.S. government has spent, lent and pledged:
Troubled Assets Relief Program (TARP)
· Congress pledged $700 billion to rescue the financial system.
Other Federal Bailouts
· In addition, the Treasury and the Federal Reserve have committed $200 billion to shore up Fannie Mae and Freddie Mac, $152 billion for AIG and $29 billion to Bear Stearns.
Federal Reserve Loans
· The Fed had $893 billion in loans outstanding last week to financial institutions and others.
· In February 2008, Congress approved a $124 billion stimulus plan. President-elect Obama and congressional leaders could consider $500 billion to $700 billion package for early next year.
BAILOUT AND LOAN TOTALS
Note: List does not include certain expenditures, including cost of covering losses at banks seized by government; tax breaks for bank acquisitions; and a mortgage insurance program created by Congress.