Treasury
IRS Exempts Citigroup from Tax on Repurchase of TARP Assets
Date:
December 11, 2009
Who:
IRS
Who:
Treasury
Policy Area:
Financial Sector Policy
Economic Target:
Citigroup
Action Type:
Tax Break
Maximum Amount:
$38.00 billion The IRS agreed to give up billions in tax money in exchange for Citigroup’s repurchase of $20 billion of its assets held by TARP.
Notes:
According to a Washington Post article, the exact value of the IRS ruling will depend on Citi’s future profits and other factors. But accounting experts estimated that Citi will save at least several billion dollars. Some experts have also said that the lost tax revenue could easily outweigh the profits the Treasury will likely make in selling its ownership stake in Citi.
Supplemental Financing for IMF
Date:
June 24, 2009
Who:
Treasury
Policy Area:
Monetary Policy
Economic Target:
Government and GSEs
Action Type:
Loans
Maximum Amount:
$75.00 billion
Amount Spent:
$75.00 billion
Deficit Impact:
$4.97 billion As part of the Supplemental Appropriations Act (H.R. 2346), signed into law on 6/24/2009, Congress and the President agreed to add $75 billion in Special Drawing Rights (SDRs) at the International Monetary Fund. The funds will remain "available until expended" to buffer the IMF's reserves.
Notes:
Deficit impact of $75 billion increase in SDRs is estimated to cost the U.S. government $4.973 billion.
Purchase of Freddie Mortgage-Backed Securities
Date:
September 7, 2008
Who:
Treasury
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Government and GSEs
Action Type:
Equity Purchase
Amount Spent:
$105.90 billion Program allows the Treasury Department to purchase government sponsored enterprise (GSE) mortgage-backed securities in the open market.
Notes:
Maximum purchases of mortgage-backed securities are unlimited. Figure for amount spent is current as of 3/2/2010 (http://www.fhfa.gov/Default.aspx?Page=70). Since the purchase of Freddie Mac mortgage-backed securities from the general fund of the Treasury constitutes an intergovernmental transfer, the deficit impact is zero.
Enhanced Consumer Protection for Credit Cards
Date:
December 18, 2008
Who:
Fed
Who:
NCUA
Who:
Treasury
Policy Area:
Financial Sector Policy
Economic Target:
Consumers
Economic Target:
Financial Institutions
Action Type:
Regulatory Change New credit card regulations adopted under the Federal Trade Commission Act, in coordination with similar sets of new rules adopted by the Office of Thrift Supervision and the National Credit Union Administration.
The new regulations, as described on the Federal Reserve's website:
Notes:
Associated costs, if any, are unknown.
Home Affordable Refinance Program
Date:
February 18, 2009
Who:
Treasury
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Consumers
Economic Target:
Housing
Action Type:
Regulatory Change Mortgage owners will be allowed to refinance with less home equity than what was permitted by previous regulations. Program applies to loans owned or guaranteed by Fannie Mae and Freddie Mac and is one of two principle programs under the Treasury's Making Home Affordable program.
Source:
Notes:
Budgetary impact of program is not known. Maximum and current costs also unknown.
Purchase of Fannie Mortgage-Backed Securities
Date:
September 7, 2008
Who:
Treasury
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Government and GSEs
Action Type:
Equity Purchase
Amount Spent:
$114.80 billion Program allows the Treasury Department to purchase government sponsored enterprise (GSE) mortgage-backed securities in the open market.
Notes:
Maximum purchases of mortgage-backed securities are unlimited. Figure for amount spent is current as of 3/2/2010 (http://www.fhfa.gov/Default.aspx?Page=70). Since the purchase of Fannie Mae mortgage-backed securities from the general fund of the Treasury constitutes an intergovernmental transfer, the deficit impact is zero.
Money Market Guarantees
Date:
September 19, 2008
Who:
Treasury
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Government Guarantee
Maximum Amount:
$50.00 billion
Amount Spent:
-$1.20 billion One-year program guarantees funds in participating money market accounts to encourage market stability. Treasury provides up to $50 billion in financing from the Exchange Stabilization Fund. The Treasury will charge mutual funds a small insurance coverage fee. As of March 31, 2009, all of the major mutual fund companies had joined the program.
Notes:
Amount spent equals based on coverage fees paid to the Treasury as of 9/18/2009. Deficit impact unknown.
Supplemental Financing Program to Federal Reserve
Date:
September 17, 2008
Who:
Treasury
Policy Area:
Monetary Policy
Economic Target:
Government and GSEs
Action Type:
Other
Amount Spent:
$5.00 billion At the request of the Federal Reserve, The Treasury will market a separate, new line of Treasury bills (short term securities) to help fund the Federal Reserve's actions taken in response to the economic and financial crisis.
In a release on 2/23/2010, the Treasury announced that the Treasury will increase the balance of the program from the current $5 billion to $200 billion, a level maintained between February and September 2009.
Notes:
Maximum amount is unlimited. Amount spent reflects value of bills outstanding as of 2/17/2010. Deficit impact unknown.
Public-Private Investment Fund
Date:
February 10, 2009
Who:
Treasury
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Loans
Maximum Amount:
$0.00 billion See the companion FDIC entry for the Public-Private Investment Fund
Program first announced by Treasury Secretary Geithner on 2/10/2009.
Troubled Assets Relief Program (TARP)
Who:
Treasury
Maximum Amount:
$475.00 billion
Amount Spent:
$110.58 billion
Deficit Impact:
$32.00 billion The Troubled Assets Relief Program (TARP) was created on October 3, 2008 as part of the Emergency Economic Stabilization Act of 2008. TARP was intended to preserve the US financial sector and avoid future structural collapse by allowing the Department of the Treasury to purchase so-called "troubled assets," although different approaches were taken once the program was put into place.
Source:
Notes:
Amount spent as of 8/22/2012. Maximum amount based on quarterly report by Special Inspector General for TARP (http://www.sigtarp.gov/reports/congress/2009/October2009_Quarterly_Report_to_Congress.pdf). Deficit impact comes from CBO's December 2011 Report on TARP.
In its 2010 August Budget and Economic Update, CBO estimated that over the life of the program, TARP would cost $66 billion.
In November 2010, CBO revised its estimate of the program downward further to $25 billion.
In March 2011, CBO once again lowered its cost estimate of the program to $19 billion.
In December 2011, CBO raised its estimate of TARP to $34 billion.
