The acting special inspector general for the $700 billion bailout, Christy Romero, as that the bailout launched at the height of the financial crisis in 2008 will continue to exist for years.
From the AP,
Some bailout programs, such as the effort to help homeowners avoid foreclosure by reducing mortgage payments, will last as late as 2017, costing the government an additional $51 billion or so.
The gyrating stock market has slowed the Treasury Department's efforts to sell off its stakes in 458 bailed-out companies, the report says. They include insurer American International Group Inc. (AIG), General Motors Co. (GM) and Ally Financial Inc.
If the Treasury plans to sell its stock in the three companies at or above the price where taxpayers would break even on their investment, it could take an incredibly long time for the market to even rebound to that level. Shares for AIG closed on Wednesday at $25.31, which is more than $3 less than the break even point for taxpayers, while GM ended at $24.92, while needing to hit the $53.98-a-share break even point. Ally isn't publicly traded.
The government has unwound its investments in the companies that received the most aid: Bank of America Corp., Citigroup Inc., Chrysler Group LLC and Chrysler Financial.
$413.4 billion was paid out from the Congress authorized $700 billion for the bailout, also known as Troubled Asset Relief Program, or TARP. So far the government has recovered only $318 billion.
&ldqu! o;TARP i s not over,” Romero said in a statement. She said that her office will continue to protect taxpayers for the duration of the program.