When $45 Billion is Really $199.2 Billion

[Omaha Steve]

http://www.seiu.org/2009/04/when-45-billion-is-really-1992-billion-1.php


10:56 AM Eastern - April 24, 2009
When $45 Billion is Really $199.2 Billion
By Brad Levinson

If you've been following the news, you know by now that Bank of America is in debt to the American taxpayer in the amount of $45 billion - the amount of TARP funds (aka "bailout money") that they received since last year.

But it turns out that a figure that you likely haven't heard - 199.2 billion - paints a bit more of an accurate number on how much Bank of America will most likely "borrow" from the American people.

How do we figure?

$12 Billion in TARP Funds for AIG
In addition to the $45 billion in direct TARP funds mentioned above, Bank of America has received a total of $12 billion from AIG after its own bailout, all of which is directly attributable to financing from the Federal Reserve (AIG: http://www.aig.com/aigweb/internet/en/files/Counterparties150309RELonly_tcm385-155648.pdf)

$98.2 Billion in Asset Guarantees Against Losses
Bank of America has received a taxpayer guarantee on $118 billion worth of toxic assets. Taxpayers are on the hook for up to $98.2 billion in losses - $7.5 billion from the Treasury, $2.5 billion from the FDIC, and $88.2 billion from the Federal Reserve. (New York Times, 1/16/09: http://www.nytimes.com/2009/01/16/business/16merrill.html)

$44 Billion in Asset Guarantees Through the FDIC's TLGP
That's a lot of initials, but essentially, the $44 billion is backed by new bond issuances under the Debt Guarantee Program. This is more than any other financial institution. (http://online.barrons.com/article/SB124001886675331247.html)


FULL article at link.