Treasury says about $110B left in $700B bailout fund

APR 21, 2009
The Treasury Department said Tuesday that $109.6 billion in resources remain in the government's $700 billion financial rescue fund. But officials expect the fund will be boosted over the next year by about $25 billion as some institutions pay back money they have received. That would boost the fund to $134.6 billion. The accounting details were made by Treasury Secretary Timothy Geithner in a letter to Elizabeth Warren, the head of the Congressional Oversight Panel. In the letter, Geithner said the Bush administration had committed $355.4 billion in resources before it left office. That total included $117 billion committed to insurance giant American International Group Inc., banking giants Citigroup Inc. and Bank of America Corp., and auto companies General Motors Corp. and Chrysler LLC. Another $218 billion has been committed to banks to bolster their capital reserves. So far, that program has disbursed nearly $200 billion to more than 500 banks nationwide with more applications pending. Former Treasury Secretary Henry Paulson had once set a goal of having $250 billion disbursed to banks. By Treasury's accounting, another $20 billion has been committed to the initial joint effort with the Federal Reserve to boost lending to consumers and businesses under a Fed program known as the Term Asset-Backed Securities Loan Facility. Congress authorized the bailout fund on Oct. 3 after the Bush administration said a sizable response was needed to deal with the worst financial crisis to hit the country in seven decades. The Obama administration sent Congress a budget request earlier this year that included a "placeholder" to more than double the fund to $750 billion. However, lawmakers have told the administration there is no chance they will approve any proposal to boost the fund. There has been a sizable political uproar over reports of millions of dollars in bonuses paid to executives at financial institutions getting bailout funds. There also is unhappiness that all the money has failed so far in its primary objective of getting banks to resume more normal lending to consumers and businesses.

Latest News

Advisor moves: Wells Fargo FiNet lands $580M Ameriprise team
Advisor moves: Wells Fargo FiNet lands $580M Ameriprise team

LPL Financial and Raymond James also add independent advisors from Osaic and Edward Jones in Michigan and Arizona.

M1 Advisor bets AI can serve clients wealth managers turn away
M1 Advisor bets AI can serve clients wealth managers turn away

The SEC-registered RIA advises on more than $1 billion in client assets, with no advisory fee through 2027 and no human financial advisors.

SEC charges Caris Investment Partners in alleged cherry-picking scheme
SEC charges Caris Investment Partners in alleged cherry-picking scheme

95.8% of house trades were winners. For clients? The SEC says just 14.9%.

Pension fund accuses Duolingo of burying user-growth crisis
Pension fund accuses Duolingo of burying user-growth crisis

The complaint says Duolingo added friction on purpose, then lied about it.

Wirehouses losing more advisors so far in 2026: Report
Wirehouses losing more advisors so far in 2026: Report

The four wirehouse firms lost 1,449 experienced advisors and recruited 932 in the first six months of the year, according to Diamond Consultants.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor