Banker/Government Theft Could Reach $23 Trillion?
"Bailout bill seen at $4.7 trillion" by Jim Kuhnhenn, Associated Press | July 21, 2009
WASHINGTON - The federal government has devoted $4.7 trillion to help the financial sector through its crisis, a level of assistance equal to about one-third of the overall US economy, a watchdog report said yesterday.
We are sunk, world.
Under the worst of circumstances, the report said, the government’s maximum exposure could total nearly $24 trillion, or $80,000 for every American.
And it will probably be even worse at the rate we are going.
The figures are part of a tough new quarterly report to Congress from special inspector general Neil Barofsky. The $4.7 trillion commitment to the industry takes into account about 50 initiatives and programs set up since 2007 by the Bush and Obama administrations as well as by the Federal Reserve. Barofsky oversees one of the initiatives - the $700 billion Troubled Asset Relief Program.
Much of the government assistance is backed by collateral and Barofsky’s $23.7 trillion estimate represents the gross, not net, exposure that the government could face. Because of declining participation in short-term loan programs and because some infusions of money have been repaid, the maximum amount actually spent has declined to a current outstanding balance of $3 trillion, Barofsky said.
Excuse me as I take a grin of salt.
Treasury spokesman Andrew Williams said the actual cash outlay to date of all the programs cited by Barofsky is less than $2 trillion and said the maximum exposure estimate “is inflated in a number of ways.’’
Which means it is probably even more than $24 trillion.
Barofsky’s $23.7 trillion estimate represents the maximum exposure that the government would face if all eligible applicants requested the maximum assistance at the same time. It does not account for the fees and other costs that some of these programs charge and for the collateral that many participants provide. The total also includes $3.35 trillion for a program to back money market mutual funds.
Yeah, yeah, the bankers are treating us all fine, whatever.
--more--"
With THEIR CUT, of course:
"Firm’s AIG bill to Fed swells; Ernst & Young may reap $60m on expanded pact" by Hugh Son, Bloomberg News | July 21, 2009
NEW YORK -Ernst & Young LLP may earn up to $60 million advising the Federal Reserve Bank of New York on the dismantling of American International Group, an increase of 50 percent from the initial agreement.
The accounting firm is billing discounted rates to the New York Fed, including $775 per hour for work done by partners or executive directors, according to Ernst & Young documents released July 17 by the Fed. An amendment in May said fees could be as high as $60 million after a September 2008 letter set the limit at $40 million.
That's a DISCOUNT? $775/hour and 20 MILLION OVER BUDGET?
“The scope of work to be performed under the agreement has expanded in light of recent restructuring and other efforts,’’ New York-based Ernst & Young said in the May 11 letter.
AIG’s bailout, expanded three times since September, is valued at $182.5 billion, including a five-year credit line. The initial rescue, a two-year credit line for $85 billion, was insufficient to stabilize the insurer as chief executive Edward Liddy struggled to sell assets amid the recession to raise money to repay the loan.
Related: Government Passes the Bucks on AIG
Charles Perkins, spokesman for Ernst & Young, one of the so-called Big Four accounting firms, declined to comment as did the New York Fed’s Deborah Kilroe. Ernst & Young was also hired by the Fed for advice on Bear Stearns Cos., which was purchased by JPMorgan Chase & Co. last year. The firm will reap up to $6 million, charging the same rates as on the AIG assignment, according to an April 15 letter released by the Fed.
The New York Fed will also reimburse Ernst & Young for expenses on AIG work, including travel, meals, and accommodations, for a total not to exceed 10 percent of the cost of professional fees.
Aren't you GLAD the FED PRINTED MONEY and CHARGED YOU INTEREST so Ernst and Young could have a meal allowance -- at the DISCOUNTED RATE of $775/hour!
The Fed bank turned to banks and other firms to auction assets and manage portfolios after helping to stave off the collapse of the financial system.
So that makes it all right, doesn't it, 'murkn? If it ver was in danger at all.
No, no, go back to your bowl of s***.
Sorry to disturb you.
