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Obama claims 'We got back every dime' of bailout money on same day CBO reports $24 billion loss

By Catholic Online (NEWS CONSORTIUM)
October 16th, 2012
Catholic Online (www.catholic.org)

President Barack Obama declared last week that "we got back every dime we used to rescue the financial system." However -- according to the Congressional Budget Office, the government will lose about $24 billion on the bailout.

LOS ANGELES, CA (Catholic Online) - "We got back every dime we used to rescue the financial system, but we also passed a historic law to end taxpayer-funded Wall Street bailouts for good," Obama declared in Miami last week.

The Congressional Budget Office, or CBO, based on figures from Obama's own Office of Management and Budget gives an entirely story.

"The cost to the federal government of the TARP's transactions (also referred to as the subsidy cost), including grants for mortgage programs that have not yet been made, will amount to $24 billion," the CBO reported, which coincidentally was released on the same day Obama spoke.

The Troubled Asset Relief Program or TARP is the formal name of the government's financial bailout program passed in October 2008.

TARP is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector that was signed into law by U.S. President George W. Bush on October 3, 2008. It was a component of the government's measures in 2008 to address the subprime mortgage crisis.

CBO said that the cost of TARP "stems largely from assistance to American International Group (AIG), aid to the automotive industry, and grant programs aimed at avoiding home mortgage foreclosures." The CBO also noted that the losses will be so large they will overshadow the financial gains the government will reap from bailing out other large financial institutions.

CBO has reported currently that $65 billion in TARP funds remain outstanding.

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