By Covering Business March 15, 2012
When Congress established the Troubled Asset Relief Program in October 2008, it authorized the federal government to spend up to $700 billion to help stabilize the markets by purchasing what it called “troubled assets.” It hasn’t spent nearly that much.
At last count, the government had spent about $428 billion to prop up the banks, the auto industry, the mortgage market and the insurance giant AIG.
The law that created the TARP mandates the Congressional Budget Office publish a semi-annual report on its progress. The latest report was published in December. Among its findings:
• The CBO estimates the program’s net cost to the government will be $34 billion, up from its March estimate of $15 billion.
• The CBO estimates that as of November, the automotive industry had received about $80 billion in TARP funds and that $37 billion was still outstanding.
• As of November, the government had spent $3 billion in TARP money on mortgage programs. The CBO projects that will rise to $13 billion over the lifetime of the program.
Read the full report (PDF).
View the CBO’s TARP infographic (PNG).
