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Taxpayers Bail Out Money Disappears with Bankruptcies; CIT Group, United Commercial Bank

Posted on | November 16, 2009 | No Comments

The money that taxpayers ponied up for the Troubled Asset Relief Program (TARP) might soon disappear due to bankruptcies.  Last year, the government created a $2.3 billion emergency fund for CIT Group and today this money is likely to vanish as CIT Group is in bankruptcy court.  As CIT Group files for bankruptcy protection the entire $2.3 billion taxpayers investment is gone.

Last year government officials created the $700 billion TARP program to help bail out many financial institutions, automakers and insurers.  We are starting to see the effects of taxpayers investments today.  At the end of September, 46 of the “bailed out” institutions have missed dividend payments to the government.

November 6th could be the beginning of many bankruptcy filings that involve TARP receivers.  United Commercial Bank of San Francisco, California went under which was a cost of $299 to taxpayers.  Sadly, many financial analysts have predicted that this is just the beginning of many bankruptcy filings in the near future.

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Author: Jeremy North

Category: Current News

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