TARP Failures Keep Taxpayers On The Hook; 33 Companies Miss Payment

[AllentownJake]

According to The Washington Post, 33 companies that received a portion of TARP's $700 billion have not paid the federal government their most recent dividend payments. Those payments are required by the terms of the bailout and signal that the firms are strained for cash, according to the Post.

If those companies fail, US taxpayers stand to lose billions.

The Post profiles CIT's failure and bankruptcy despite $2.3 billion in investments from the federal government, money that US taxpayers will likely never see (though Goldman Sachs, another CIT investor, stands to make $1 billion from the company's failure). CIT's bankruptcy filings listed $71 billion in assets and $64.6 billion in debt.

The Fed argued that a CIT bailout would help the public because the lender would be freed up to make loans--except that never happened.

n the fiscal year ending on Sept. 30, CIT made just 142 loans backed by the Small Business Administration totaling $105 million. One year before, CIT lent 1,589 SBA loans totaling $873 million.

http://www.huffingtonpost.com/2009/11/15/tarp-failures-keep-taxpay_n_358566.html

[SpiralHawk]

1. That reminds me...I'm ready for my billion-dollar bailout now

Please make it in gold bullion deliverable today to Rev. Dr. SpiralHawk.

[QC]

2. THANK GOD IT PASSED!!!

[nc4bo]

5. Yes, thank God.

Billions of $$ stuffed into zombie corpses.

When I think about how that money was dropped into Wall Street, not Main Stret, my heart just shrivels up into a little black chunk of coal.

Yea. Thank God it passed.

[Zenlitened]

8. That really is one for the ages, isn't it?

And yet... the jackass who posted it way back when seems uncharacteristically silent on the topic now.

:eyes:

[Tierra_y_Libertad]

9. The jackass who posted it is no longer with us due to a pizza overdose.

[QC]

10. There are multiple jackasses.

I was thinking of a different one.

[Zenlitened]

11. Well then...

Thank Gawd It Passed, indeed! :)

[ixion]

3. okay, they missed payments... time to jack that interest rate to 30%

turnabout is fairplay, don'cha know. :evilgrin:

[Canuckistanian]

4. I'm sure they can hit up Goldman Sachs for the money

GS seems to have a few bucks to spare.

[LuvNewcastle]

6. No matter what happens,

Goldman-Sachs comes out smellin' like a rose.

[FarCenter]

7. The 33 are out of 728 TARP recipients

For a list of recipients from AIG, Fannie Mae and Freddie MAC, down to DuPage Credit Union, Central Jersey Federal Credit Union, and Citizens First Wholesale Mortgage Company see http://bailout.propublica.org/main/list/index

For the goverment publication see http://www.financialstability.gov/docs/transaction-reports/11-13-09%20Transactions%20Report%20as%20of%2011-10-09.pdf