March 13, 2012 |
American International Group Inc.'s recent quarterly profit of nearly $20 billion was almost entirely due to an inappropriate tax break, four former members of the watchdog panel that oversaw the financial crisis bailouts said. The break allowed the government-owned insurance company to count its past net operating losses against future taxes. That amounts to a "stealth bailout" of a company that received about $125 billion in taxpayer money, said the former appointees to the Congressional Oversight Panel for the $700-billion Troubled Asset Relief Program.
July 23, 2009 |
As banks begin paying back their federal bailout money, some lawmakers and government watchdogs worry the Obama administration isn't driving a hard-enough bargain on the one part of the investment that could generate a profit for taxpayers. Banks that received money from the $700-billion Troubled Asset Relief Program were required to supply the government with warrants to buy future stock at a set price. Congress wanted taxpayers to benefit if the banks became financially healthier.
CALIFORNIA | LOCAL
April 23, 2014 |
In her new book, “A Fighting Chance,” Massachusetts Sen. Elizabeth Warren accuses California gubernatorial candidate Neel Kashkari of lying to her when he led the taxpayer-funded federal bank bailout. Warren, a Democrat, served as chair of the bipartisan Congressional Oversight Panel that was created in 2008 to scrutinize the $700-billion Troubled Assets Relief Program. In her book, released Tuesday, Warren writes that members of the panel had grown “deeply concerned” that within seven weeks of the law's passage, $172 billion in taxpayer funds had been committed to various banks with little oversight.
March 5, 2010 |
Facing the government's bailout watchdogs for the first time, Citigroup Inc. Chief Executive Vikram Pandit publicly thanked taxpayers Thursday for the $45 billion that helped save the company during the financial crisis and said he was taking steps to ensure future handouts would not be needed. "This is a different company," Pandit told the Congressional Oversight Panel, which monitors the $700-billion Troubled Asset Relief Program. He said he did not anticipate Citigroup would need any additional bailout money, a point echoed by Herbert M. Allison Jr., the assistant Treasury secretary who oversees TARP.
June 11, 2010 |
A watchdog panel Thursday blasted the government's $182-billion bailout of insurance giant American International Group Inc. for its continued "poisonous effect" on financial markets and said it's still unclear whether taxpayers ever will be fully repaid. The Congressional Oversight Panel, set up by lawmakers to monitor the $700-billion bailout fund, also was sharply critical of Treasury Department and Federal Reserve officials for failing to exhaust all other options in 2008 before rescuing AIG as it teetered near bankruptcy.
September 11, 2009 |
WASHINGTON -- Citing emerging financial sector stability, Treasury Secretary Timothy Geithner said Thursday that a number of government rescue efforts in place since the Wall Street crisis are no longer needed and that banks will repay $50 billion in rescue funds over the next 18 months. Geithner, testifying before a congressional watchdog panel, said the nation still has a ways to go before "true recovery takes hold." But he said improved conditions in the banking industry have prompted Treasury to begin winding down emergency support programs.