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.
May 26, 2010 |
American International Group Inc., the much-derided prime example of Wall Street excesses during the financial crisis, could end up doing what many thought was impossible: repaying most, and maybe all, of the $132.3 billion in taxpayer funds used so far to bail it out. Company executives and federal officials testified Wednesday at a hearing by the government watchdog commission overseeing the bailouts that the giant New York insurer was regaining some of its financial strength, making the prospects for full repayment look brighter.
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.
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.
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.
April 22, 2009 |
The Obama administration has indicated for the first time that it will let some big banks repay their bailout cash early, estimating that at least $25 billion will come back to the government in the next year. With that money, and at least $110 billion remaining in the $700-billion financial rescue fund, the Obama administration will have enough to pay for its economic initiatives without further action by Congress, Treasury Secretary Timothy F.