Government put $4.3 Trillion of Taxpayer Money Into Bank Guarantees

I have repeatedly pointed out that the government’s rescue of the too big to fails didn’t just include $700 billion or so in Tarp, but also massive guarantees.

Elizabeth Warren and the Tarp oversight panel now say taxpayer money guaranteed assets worth $4.3 trillion at the height of the financial crisis, in a bid to help banks ride out the panic.

In addition, the Oversight panel’s report notes that the guarantees are still providing invisible government subsidies even to healthy banks, even though many of the programs have now expired.


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