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Bailouts to date

Column Archive SPECIAL REPORT Issue #1: America's Money Crisis

Economy rescue: Adding up the dollars

The government is engaged in an unprecedented - and expensive - effort to rescue the economy. Here are all the elements of the bailouts.

Date Bailout Allocated Spent

December 2007 Term Auction Facility
Lending program that allows commercial banks to unload hard-to-sell assets, including mortgage-backed securities: Fed takes assets as collateral and banks get cash. $600 billion $468.6 billion

February 2008 Economic Stimulus Act of 2008
Tax rebates of up to $600 for individual filers and $1,200 for couples in effort to boost the economy. Businesses received more than $60 billion in tax breaks. $168 billion $168 billion

March 2008 Bear Stearns bailout
Program to guarantee potential losses on Bear Stearns' portfolio; smoothed the way for JPMorgan Chase to buy the failed investment bank. $29 billion $26.2 billion

March 2008 Term Securities Lending Facility
Federal Reserve facility that loans Treasurys to banks against hard-to-sell collateral like mortgage-backed securities. $200 billion $88.6 billion

March 2008 Primary Dealer Credit Facility
Long-time lending facility for commercial banks that was opened to investment banks for first time in March 2008. n/a $61.3 billion

May 2008 Student loan guarantees
Program to purchase federal student loans from private lenders. Aim is to provide financing to companies that provide student loans. $130 billion $9 billion

September 2008 Fannie Mae and Freddie Mac bailout
Cost to the government of taking the mortgage finance companies into conservatorship. $400 billion1 $59.8 billion

September 2008 Foreign exchange dollar swaps
Exchange of dollars to 13 foreign central banks for collateral. Aim is to provide liquidity to foreign financial institutions. Unlimited $327.8 billion

October 2008 FHA housing rescue
Funding set aside for insurance of new 30-year fixed-rate mortgages for at-risk borrowers, tax credits for first-time home buyers and assistance to states and municipalities. $320 billion $20 billion +2

October 2008 Auto industry energy efficiency loans
Low-interest loans to help speed the industry's transition to more fuel-efficient vehicles. $25 billion $0

October 2008

Troubled Asset Relief Program
Financial rescue plan aimed at restoring liquidity to the financial markets. Funds thus far allocated for capital purchases in banks and emergency bailouts.

$700 billion

$323.4 billion

October 2008

Bank capital investments

$250 billion

$198.6 billion

November 2008 Citigroup capital investment
Emergency funding to keep bank afloat; in addition to previous $25 billion capital investment. $20 billion $20 billion

November 2008 Citigroup loan-loss backstop
Funds set aside to backstop potential losses to Treasury from Citigroup loans. $5 billion $0

November 2008 TALF loss provisions
Funds set aside to backstop potential losses to Treasury from purchases of consumer loan-backed securities and mortgage-backed securities. $100 billion $0

December 2008

Auto industry bailout
Program that will provide capital on a case-by-case basis to systemically significant institutions that are at substantial risk of failure.

$29.8 billion

$24.8 billion

December 2008	General Motors Government bailout of automaker to keep company afloat and help it achieve viability for the future. Last $4 billion subject to congressional approval	$13.4 billion	$13.4 billion
December 2008	Chrysler Government bailout of automaker to keep company afloat and help it achieve viability for the future. Last $4 billion subject to congressional approval	$4 billion	$4 billion
December 2008	GMAC Government bailout of auto finance company to which Federal Reserve granted bank holding company status. $5 billion went to GMAC directly and $1 billion to GM to make an investment in the company.	$5.9 billion	$5.9 billion
January 2009	Chrysler Financial Government bailout of auto finance company to which Federal Reserve granted bank holding company status.	$1.5 billion	$1.5 billion
March 2009	Auto Supplier Support Program Program to help stabilize auto suppliers by guaranteeing debt owed to them for shipped products, and providing financing to continue operations.	$5 billion	$0

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January 2009 Bank of America capital investment
Emergency funding to aid Merrill Lynch transaction; in addition to previous $25 billion capital investment. $20 billion $20 billion

February 2009 Foreclosure prevention $50 billion4 $0

February 2009 Public-private investment fund
Taxpayer funds used in partnership with private investment that will buy up at least $500 billion of toxic assets from financial institutions. $100 billion $0

March 2009 AIG common stock investment
Money to help troubled insurer pay off now defunct lending facility set up by Fed in the initial version of the company's bailout. $40 billion $40 billion

March 2009 TALF investment $20 billion $20 billion

March 2009 AIG preferred capital investment $30 billion $0

March 2009 Small business loan-backed securities purchasesFunds to purchase securities backed by SBA loans in effort to unlock credit for small businesses $15 billion $0

n/a Funds left unallocated $20.2 billion n/a

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October 2008 Money market guarantees
Four programs to help money market funds by insuring against losses; financing bank purchases of debt from funds; buying funds’ debt; and lending to funds directly. $659 billion $15 billion

October 2008 Commercial Paper Funding Facility
Purchases of short-term corporate debt aimed at boosting the struggling market and providing critical three-month financing to businesses. $1.4 trillion $241.3 billion

November 2008 Unemployment benefit extensions
Funds to help states expand unemployment benefits. $8 billion $8 billion

November 2008 Citigroup loan-loss backstop
Funds set aside to insure against losses from bank’s mortgage-backed securities investments. $245 billion $0

November 2008 Term Asset-Backed Securities Loan Facility
Program to buy consumer loan-backed securities. Aim is to revive the securitization market for consumer loans like credit cards and auto loans. $1 trillion $4.7 billion

November 2008 GSE mortgage-backed securities purchases
Program to buy mortgage-backed securities held by Fannie Mae and Freddie Mac. Aim is to reduce rates on home loans. $1.25 trillion $236.2 billion

November 2008 GSE debt purchases
Program to buy debt issued by Fannie Mae and Freddie Mac. Aim is to reduce rates on home loans. $100 billion $50.4 billion

November 2008 FDIC Temporary Liquidity Guarantee Program
Guarantees on newly issued bank bonds with maturities of more than three months. Aim is to restore liquidity to the corporate bond market and provide long-term financing to banks. $1.5 trillion $297.1 billion

2008

FDIC bank takeovers
Cost to FDIC fund that insures losses depositors suffer when a bank fails.

n/a

$18.5 billion

January 2009 Bank of America loan-loss backstop
Funds set aside to insure against losses from bank’s Merrill Lynch merger. $97 billion $0

January 2009 Credit Union deposit insurance guarantees $80 billion $0

January 2009 U.S. Central Federal Credit Union capital injection $1 billion $1 billion

February 2009

American Recovery and Reinvestment Act
Infrastructure spending, funding for states, help for the needy and tax cuts for individuals and businesses to stimulate the economy.

$787.2 billion

n/a3

February 2009	Tax cuts for individuals and businesses	$212 billion	n/a
February 2009	Direct spending	$267 billion	n/a
February 2009	Appropriations spending	$308.3 billion	n/a

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February 2009 Foreclosure prevention $25 billion4 $0

March 2009

AIG
Multifaceted bailout to help insurer through restructuring, minimize the need to post collateral and get rid of toxic assets from its balance sheet.

$182 billion5

$129.3 billion5

November 2008	Bridge loan Financing to help company through its restructuring process as it spins off non-core businesses.	$60 billion6	$43.2 billion
November 2008	Collateralized debt obligation purchases Facility to buy private investors' loans on which AIG sold insurance. As the value of loans plummeted, AIG was forced to post more collateral to back up the insurance contracts, known as credit default swap agreements.	$30 billion	$27.6 billion
November 2008	Mortgage-backed securities purchases Facility to buy company’s securities backed by residential loans.	$22.5 billion	$18.4 billion
March 2009	Treasury preferred capital investment Loan to help pay off a now defunct lending facility set up by the Fed in the initial version of the company’s bailout.	$30 billion	$0
March 2009	Investment in ALICO and AIA life insurance units	$26 billion	$0
March 2009	Purchases of life insurance-backed securities	$8.5 billion	$0
March 2009	Treasury common stock investment	$40 billion	$40 billion

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March 2009 U.S. government bond purchases
Federal Reserve will buy up to $300 billion of U.S. debt to support Treasury market and help keep interest rates down for consumer loans. $300 billion $15 billion

2009

FDIC bank takeovers
Cost to FDIC fund that insures losses depositors suffer when a bank fails.

n/a

$2.3 billion

Total: $10.5 trillion $2.6 trillion

1$200 billion set aside in September 2008; $200 billion additional in February 2009
2At least $20 billion
3Estimated budget impact for 2009 is $120 billion
4Making Home Affordable foreclosure prevention program will get $50 billion from Treasury, $20 billion from GSEs and $5 billion from HUD.
5Includes $70 billion from TARP
6Bridge loan allocation to be reduced to not less than $25 billion once government takes stakes in life insurance units

Sources: Federal Reserve, Treasury, FDIC, CBO
Note: Figures as of March 30, 2009

http://money.cnn.com/news/specials/storysupplement/bailout_scorecard/index.html

Physical Dimensions

Bailouts to date

Economy rescue: Adding up the dollars

The government is engaged in an unprecedented - and expensive - effort to rescue the economy. Here are all the elements of the bailouts.

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