The government bailed out 930 banks, including insurance companies, auto companies, mortgage servicers, investment funds and state housing organizations across the country, costing more than $700 billion to date, with taxpayer’s dollars. As of today they have received approximately $275 billion in payments, leaving $425 billion in outstanding debt.
U.S. bailing out troubled companies and even entire states started in the 70’s.
Let’s take a walk down memory lane.
The History of Government Involved Bailouts:
Year – Name of Company – Amount – Guarantor:
1970 Penn Central Railroad 3.2 Billion
President Nixon and Federal Reserve
1971 Lockheed 1.4 Billion Congress
Comments: Congress passed the “Emergency Loan Guarantee Act”
1974 Franklin National Bank 7.8 Billion Federal Reserve
1975 New York City 9.4 Billion President Ford
Comments: President Ford signed the “New York City Seasonal Funding Act”
1980 Chrysler 4.0 Billion U.S. and Foreign Aid
Comments: In 1980 the “Chrysler Loan Guarantee Act” was passed.
1984 Continental Illinois Nat’l Bk 9.5 Billion F.D.I.C. and The Federal Reserve
1989 Savings and Loan 293.3 Billion
President George H.W. Bush
Comments: President George H.W. Bush signed and Congress enacted the
“Financial Institution Reform Recovery and Enforcement Act in 1989.
2001 Airline Industry 18.6 Billion President Bush
Comments: President Bush signed into law the ‘Air Transportation Safety and Stabilization Act.”
2008 Bear Stearns 30 Billion JP Morgan and The Federal Government
2008 Fannie Mae / Freddie Mac 400
Billion Placed under Conservatorship
Comments: Fannie Mae/Freddie Mac placed under conservatorship of the
“Federal Housing Finance Agency.”
2008 American Int’l Group 180
Billion Federal Reserve and The Treasury
2008 Troubled Asset Relief Program 700
Comments: Congress passed the “Emergency Economic Stabilization Act.”
2008 Citigroup 280
Billion Various Companies
Comments: The Tarp Program, Government, Treasury, FDIC, Federal Reserve;
All had a hand in saving Citigroup.
2009 Bank of America 142.2
Billion FDIC, Treasury, Federal Reserve
2011 United States of America “Who will rescue the people of the United States?”
** Special Thanks to “Propublica.org **