Home > Economics, Law > Breakdown of TARP Spending, Five Years Later

Breakdown of TARP Spending, Five Years Later

Saturday, November 2nd, 2013 Leave a comment Go to comments

When the Troubled Asset Relief Program (TARP) was signed into law on October 3, 2008, the U.S. economy had just experienced the largest bankruptcy in American history (Lehman Brothers) and was on the verge of collapse. Against this backdrop, and reflecting on the government program that was created in an attempt to curb the 2008 U.S. Financial Crisis, where did all the money that Congress was authorized to spend exactly go?

Timothy Taylor from the Conversable Economist breaks down the numbers:

TARP was authorized to spend $700 billion. What did it actually do? The money went five places: 1) $68 billion to the insurance company AIG; 2) $80 billion to the auto companies; 3) $245 billion to bank investment programs; 4) $27 billion to credit market programs; and 5) $46 billion to housing programs. The other $235 billion in spending authorization was cancelled.

 

ConversableEcon_TARP-total-commitments

To read Mr. Taylor’s analysis in full, click here.

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