The Deficit President speaks in Miami.
"We got back every dime we used to rescue the banks, including interest, and we also passed a historic law to end taxpayer-funded Wall Street bailouts for good."
"As Secretary Geithner told SIGTARP, while the Dodd-Frank Act gives the Government 'better tools,' and reduced the risk of failures, 'in the future we may have to do exceptional things again' if the shock to the financial system is sufficiently large. Secretary Geithner's candor about the prospect of having to 'do exceptional things again' in such an unknowable future crisis is comendable. At the same time, it underscores a TARP legacy, the moral hazard associated with the continued existence of institutions that remain too big to fail."
In other words, Geithner reserves the right to break the law ('do exceptional things') in order to save the big banks the next time they get into trouble.
(CNSNews.com) – President Barack Obama said on Thursday that "we got back every dime we used to rescue the financial system." According to the Congressional Budget Office, however, the government will lose about $24 billion on the bailout, based on figures from Obama's own Office of Management and Budget:
“The cost to the federal government of the TARP’s transactions (also referred to as the subsidy cost), including grants for mortgage programs, will amount to $24 billion,” said the CBO report, which was released on the same day Obama spoke. 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,” noting that the losses will be so large they will eclipse the financial gains the government will realize from bailing out other large financial institutions.