Slide Show | April 2009
SORTING OUTTHE ECONOMIC RESCUE
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Here’s how we see the scorecard -- players, price tags and potential profit for Uncle Sam -- stacking up today.
The slide show begins with the navigation to the right.
Slide Show
SORTING OUTTHE ECONOMIC RESCUE
ECONOMIC STIMULUS
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- What it is: Temporary tax cuts, government spending on roads, bridges and other infrastructure, plus incentives for energy, health care, research and more.
- Where it stands: About 8% of funds already disbursed. By summer 2010, about 70%.
- What's the cost/risk: Cost to taxpayers: $787 billion in spending and loss of tax revenue.
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SORTING OUTTHE ECONOMIC RESCUE
TROUBLED ASSET RELIEF PROGRAM (TARP) LOANS AND LOAN GUARANTEES
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- What it is: Made to distressed corporations, Bank of America, AIG, Citigroup, Chrysler, General Motors and auto parts makers.
- Where it stands: Bank of America says it may be able to repay loans as soon as late this year.
- What's the cost/risk: Taxpayers' liability is $152.4-billion.
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SORTING OUTTHE ECONOMIC RESCUE
TROUBLED ASSET RELIEF PROGRAM (TARP) CAPITAL PURCHASE PROGRAM
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- What it is: Cash infusions in exchange for ownership stakes in AIG, Citigroup, Bank of America, Goldman Sachs and about 500 other banks
- Where it stands: A handful of smaller banks have repurchased shares. Larger ones are eager to do so, but the White House fears that will curb their ability to lend to consumers and businesses.
- What's the cost/risk: $218-billion taxpayer liability. If shares increase in value, taxpayers make a profit.
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SORTING OUTTHE ECONOMIC RESCUE
TERM ASSET-BACKED SECURITIES LOAN FACILITY (TALF)
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- What it is: $20 billion in Federal Reserve nonrecourse loans to private investors to purchase securities backed by car loans, credit card debt, student loans, small business and other loans. $5 billion in loan sand loan guarantees extended so far.
- Where it stands: A $35-billion program extension for securities backed by other loans, such as those for vehicle fleets and business equipment, is pending.
- What's the cost/risk: TARP funds from Treasury used to guarantee the first $55 billion in loans. Federal Reserve liability could be $500 billion.
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SORTING OUTTHE ECONOMIC RESCUE
PUBLIC-PRIVATE INVESTMENT PROGRAM (PPIP)
- What it is: Treasury funds used to match private investor equity funds (50-50 split) and to finance the purchase of mortgage backed securities (legacy securities) and troubled loans and assets (legacy loans). Treasury expects to generate $500 billion to $1 trillion in asset purchases.
- Where it stands: For legacy securities, investor applications have been filed and initial decisions are expected by May 15. Initiation of the legacy loan progam is still pending FDIC guidance.
- What's the cost/risk: $100 billion Treasury outlay from TARP. Potential taxpayer liability: About $1 trillion. Profit potential if investment values grow.
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SORTING OUTTHE ECONOMIC RESCUE
HOMEOWNER AFFORDABILITY AND STABILITY PLAN
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- What it is: Subsidies and incentives for mortgages modifications plus help for communities and displaced lenders.
- Where it stands: Guidelines established and contracts with loan servicers signed. No mortgages have been modified yet.
- What's the cost/risk: Up to $75 billion in taxpayer costs, coming from TARP funds.
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SORTING OUTTHE ECONOMIC RESCUE
COMMERCIAL PAPERFUNDING FACILITY
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- What it is: Direct Federal Reserve short-term lending to corporations to meet payroll and other cash needs.
- Where it stands: As of April 2, the Fed held $249.7 billion in such loans.
- What's the cost/risk: Maximum Fed liability: $1.8 trillion.
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SORTING OUTTHE ECONOMIC RESCUE
SMALL BUSINESS ADMINISTRATION LOAN PURCHASE PROGRAM
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SORTING OUTTHE ECONOMIC RESCUE
ASSISTANCE TO FANNIE MAEAND FREDDIE MAC
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- What it is: Capital infusions in exchange for shares.
- Where it stands: About $60 billion provided so far. Authority expires at end of year. It may be extended.
- What's the cost/risk: Up to $400 billion in taxpayer liability. Taxpayers may make a profit if shares increase in value.
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SORTING OUTTHE ECONOMIC RESCUE
FED MONEY MARKET INVESTOR FUNDING FACILITY
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- What it is: Loans to mutual funds to purchase commercial paper, other short-term, highly rated debt.
- Where it stands: So far, program hasn’t been used.
- What's the cost/risk:Potential Fed liability of up to $540 billion.
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SORTING OUTTHE ECONOMIC RESCUE
CREDIT LINE FOR AIG
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- What it is: $60 billion government credit line, using troubled AIG assets as security.
- Where it stands: $35 billion of that being converted to other loans.
- What's the cost/risk: Loans made by the Federal Reserve system, not by Treasury. Total liabililty: $60 billion.
