Eye on the Bailout
The State of the Bailout
Your Bailout Update: $315 Billion in the Red
After shrinking for several months, taxpayer exposure to the bailout jumped in February, due to Fannie Mae’s receiving another $15.3 billion.
The toll stands at $315.3 billion. That number accounts for not only the bailout money still outstanding, but also the revenue that the government has collected from recipients. Included in that revenue is $1.5 billion the Treasury Department received last week for its auction of Bank of America’s common stock warrants. Altogether, the government made a profit of about $4.6 billion through its investment in Bank of America.
The Story So Far on the Gov’t Loan Mod Program
We’ve created a resource page on the government’s loan modification program that puts all of our reporting in one place. Take a look. For those looking for a rundown, below is our summary of the program and the problems it has encountered.
The administration’s foreclosure prevention program began operation last April. The $75 billion program, called Making Home Affordable, focuses on reducing the monthly mortgage payments of struggling homeowners.
Mortgages that are owned or guaranteed by government wards Freddie Mac or Fannie Mae are automatically eligible. Other mortgages are eligible only if the servicer has signed a contract with the Treasury Department. More than 100 servicers have signed up. Mortgage servicers are the companies that specialize in collecting payments and handling individual accounts; they are frequently subsidiaries of banks, but sometimes are stand-alone companies.
New Bailout Page: How Deep Is the Gov’t in the Red?
Since the bailout began in October 2008, we’ve tried to keep you up to date on just how deep in the red the government is. Now we’ve launched a special page of our site just for that purpose.
Our bailout database tracks every dollar and every recipient. Our summary page gives an overview not only of how much money has gone out the door, but also how much the government has reaped in revenue.
If you check it out, you’ll see that, cumulatively — we track both the TARP and the separate bailout of Fannie Mae and Freddie Mac – the bailouts are at $306 billion net outstanding. We arrive at that number by accounting not only for the bailout money that has been returned, but also for the revenue that the government has received as a result of its investments and loans: dividends, interest, fees and warrant proceeds.
TARP Watchdog Launches Audit of Bailout Contracts
The Treasury Department has spent more than $159 million paying financial companies and legal firms to help the government dole out TARP funds. We at ProPublica have learned that the special inspector general for the TARP (SIGTARP), Neil Barofsky, has started an audit of how Treasury chose the companies and whether the government is being billed fairly for the work.
The audit was launched at the request of Sen. Tom Coburn, R-Okla. Coburn’s spokesman, John Hart, said a particular concern was that Treasury has redacted the labor rates from the contracts it has posted online. Treasury has hired some top law firms where partners can charge as much as $1,000 an hour, according to a 2009 billing survey by the National Law Journal.
Latest Bailouts
$512 billion of taxpayer money has been allocated or promised to 834 companies and 13 programs.
| Mar. 10, 2010 |
Navy Federal Credit Union
Incentive Payments for Home Loan Modification |
$60.8 million |
| Mar. 10, 2010 |
Vist Financial Corp
Incentive Payments for Home Loan Modification |
$300 thousand |
| Mar. 5, 2010 |
iServe Servicing, Inc.
Incentive Payments for Home Loan Modification |
$28 million |
| Mar. 3, 2010 |
Urban Trust Bank
Incentive Payments for Home Loan Modification |
$1.1 million |
| Feb. 26, 2010 |
Fannie Mae
Preferred Stock |
$15.3 billion |
| Feb. 19, 2010 |
Money for HFA Innovation Fund |
$1.5 billion |
| Feb. 3, 2010 |
Money for CDFIs |
$780.2 million |
| Jan. 29, 2010 |
iServe Residential Lending, LLC
Incentive Payments for Home Loan Modification |
$960 thousand |
We're tracking where the bailout money is going. Our lead bailout reporter – and blogger – is ProPublica's . Lead developer is .
ProPublica is an independent, non-profit newsroom that produces investigative journalism in the public interest. We strive to foster change through exposing exploitation of the weak by the strong and the failures of those with power to vindicate the trust placed in them.
TARP Watchdog Launches Audit of Bailout Contracts 2/9
Chase Denied Loan Mods for Now Forbidden Reason—Homeowners in Limbo 2/4
Homeowners Say Banks Not Following Rules for Loan Modifications 1/14
Loan Mod Program Delays Even Worse for Those Struggling Not to Fall Behind 12/21
Bailout Breakdown: Losses Likely to Be Larger Than Treasury Estimates 12/11
Interactive Chart Shows Breakdown of Slow-Moving Loan Mod Program 12/11
Homeowners Getting Blame for Lack of Loan Mods, but Evidence Points to Banks and Servicers, Too 12/9
Bailout Balance Sheet December 2009: Taxpayers’ Revenues Grow, but So Do Losses 12/3
We’ve been reporting on the Obama administration’s loan modification program, and we want to hear from homeowners who are applying for one. Tell us your story.
- Subsidyscope's Bailout Project
Comprehensive data on the government's financial interventions - Taxpayers for Common Sense
Profiles of banks receiving bailout money - BailoutWatch
Reports, news, resources on the bailout - BankTracker
Analysis of the financial health of the bailed out banks - Bailout Sleuth
Blog closely tracking the bailout - Financial Crisis for Beginners
By the experts at the blog Baseline Scenario - Planet Money
A blog and podcast explaining the financial crisis - The Emergency Economic Stabilization Act
The $700 billion bill - FinancialStability.gov
Treasury's clearinghouse for bailout info - Housing and Economic Recovery Act of 2008
Bill that authorized the bailout of Fannie and Freddie (pdf)
- AIG, Fed Czar Reach Deal on Rest of Bonus Pay to be Returned - Wash. Post
- GMAC Chief Gets $1.2 Million for 45 Days’ Work - Bloomberg
- Ex-NY Fed Head Made a Bundle Off AIG Bailout - The Nation
- Lawmakers Question GMAC Rescue - Washington Post
- Lehman’s Ghost Haunts California - Wall Steet Journal
- Banking Industry Sharply Reduced Lending in 2009 - Washington Post
- BofA’s Lewis Knew of Decision to Keep Mum on Merrill Losses - Wall Steet Journal
- JPMorgan E-mails Offer Peek at Ratings Game - The Street
- Lobbying May Push Rules for Brokers Off Reform Agenda - Bloomberg
- Big Problem for Small Banks: Trust-Preferred Securities - Wall Steet Journal
- Testy Exchange With Goldman Helped Push AIG to Edge - New York Times
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