Watchdog Report Shows Taxpayers Still Owed $132.9 Billion
January 27, 2012 by Special To Personal Liberty
According to a government watchdog, American taxpayers are still owed $132.9 billion from companies that have yet to pay after receiving Federal money for a bailout. The Associated Press reported that some of this will never be received.
The bailout that was launched at the height of the financial crisis in September 2008 will continue to exist for years, noted a report issued by Christy Romero, the acting special inspector general for the $700 billion bailout.
The AP reported that some bailout programs, such as the effort to help homeowners avoid foreclosure through lowered mortgage payments, may last until 2017. This would cost the government an estimated additional $51 billion.
The fluid nature of the stock market has slowed efforts by the Treasury Department to sell off its stakes in 458 bailed-out companies, including American International Group, General Motors and Ally Financial, according to the news outlet.
The Wall Street Journal reported that the watchdog found that exiting these investments could be difficult in coming years, due to the state of the financial markets.