About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

Report on the Troubled Asset Relief Program - March 2015 1 (March 2015)

handle is hein.congrec/cbo2116 and id is 1 raw text is: Report on the Troubled Asset Relief Program- March 2015 In October 2008, the Emergency Economic Stabilization Act of 2008 (Division A of Public Law 110-343) estab- lished the Troubled Asset Relief Program (TARP) to enable the Department of the Treasury to promote stabil- ity in financial markets through the purchase and guaran- tee of troubled assets.' Section 202 of that legislation, as amended, requires the Office of Management and Budget (OMB) to submit annual reports on the costs of the Treasurys purchases and guarantees of troubled assets. The law also requires the Congressional Budget Office to prepare its own assessment of the TARPs costs within 45 days of OMB's report. That assessment must discuss three elements: E The costs of purchases and guarantees of troubled assets, 1. The law defines troubled assets as (A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the pur- chase of which the Secretary determines promotes financial mar- ket stability; and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress. Sec. 3 of Public Law 110- 343, 122 Stat. 3767. 2. Originally, the law required OMB and CBO to submit semi- annual reports. That provision was changed by Public Law 112- 204 to an annual reporting requirement. OMBs most recent report on the TARP was submitted on February 2, 2015, as part of the Budget of the UnitedStates Government, Fiscal Year 2016: Analytical Perspectives (pp. 329-339), www.whitehouse.govomb/ budget/AnalyticalPerspectives. The information and valuation methods used to calculate those costs, and The impact on the federal budget deficit and debt. To fulfill its statutory requirement, CBO has prepared this report on the TARP's transactions that were com- pleted, outstanding, or anticipated as of January 31, 2015. By CBO's estimate, $440 billion of the initially authorized $700 billion will be disbursed through the TARP, including $427 billion that has already been dis- bursed and $13 billion in additional projected disburse- ments. CBO's current estimate of the cost to the federal government of the TARP's transactions (also referred to as the subsidy cost)-which accounts for the realized costs of completed transactions and the estimated costs of outstanding and anticipated transactions-amounts to $28 billion (see Table 1). The estimated cost of the TARP stems largely from assis- tance to American International Group (AIG), aid to the automotive industry, and ongoing grant programs aimed at avoiding home mortgage foreclosures. Other trans- actions with financial institutions have, taken together, yielded a net gain to the federal government, in CBO's estimation. CBO's current assessment of the cost of the TARP's trans- actions is $1 billion higher than the $27 billion estimate shown in the agencys previous report on the TARP (issued in April 2014). That increase in the estimated cost stems from an increase in projected disbursements 3. See Congressional Budget Office, Report on the TroubledAsset ReliefProgram-Apri12014 (April 17, 2014), www.cbo.gov/ publication/45260. Note: Numbers in the text and tables may not add up to totals because of rounding.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most