AIG had a new give in the authorities. The following is where it suits one of other bodies apps

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New york (CNNMoney) — AIG may have gotten an excellent $150 mil contract Friday, but that is just a small fraction of the fresh new nearly $step 3 trillion for the monetary cut applications the federal government has established so you can balance the U.S. economy.

This new Federal Set aside and you will You.S. Treasury Service authorities worked with AIG managers along the week-end so you’re able to restructure its completely new bailout package, the fresh center where are a top-interest-rates financing.

Worried that an AIG failure would result in an excellent domino impression in the financial system and you can a loss in huge amounts of taxpayer cash, the us government reworked the offer.

One raises questions about possible bodies guidelines some other troubled companies, including automaker Standard Motors (GM, Fortune five hundred), and that told you Saturday it absolutely was powering dangerously reasonable on cash.

“Obviously there are many markets seeking opening TARP (Troubled Advantage Recovery Program) money, while the Treasury is guaranteed to work into the a strategy that commonly extremely efficiently deploy the remaining fund,” a Treasury specialized said Friday.

New Treasury has been registered to make use of around $700 billion away from taxpayer finance to invest in guarantee limits and you can stressed property out of businesses. This has made use of regarding the $172 million of this at this point so you’re able to inject investment towards throughout the 49 banking companies, considering analysts in the Keefe, Bruyette & Woods. The Treasury likewise has used $40 mil so you can inject financing towards AIG (AIG, Chance five-hundred).

High borrowing from the bank will set you back made college loans unprofitable for many loan providers, nearly all just who averted providing the loans

Towards the likelihood of much more bailouts on route, information on how the federal government provides thus far invested vast amounts of cash in order to save finance companies, people, people and their property:

Term-public auction facility: $step 1.5 trillion in the money in order to banking companies to date in exchange for if not undesired guarantee. The new Provided enhanced its monthly public auction limit so you’re able to $three hundred mil from inside the .

Buck swap lines: Endless dollars so you’re able to thirteen international central banking companies to incorporate liquidity so you can overseas creditors. The fresh new Given increased their limit after increasing it to help you $620 million from inside the Oct of $24 million in December.

Bear Stearns: $31 mil when you look at the an alternative credit business to make sure prospective losings towards their profile. For the financing facility, JPMorgan been able to part of to keep Bear off bankruptcy proceeding.

Financing so you can financial institutions: $77 million borrowed normally day-after-day so you’re able to financial support banks, once business open in order to non-commercial banking companies for first-time in February.

Cash injections: $250 mil to banks in exchange for collateral stake on loan providers in the form of elderly well-known shares.

Stimulus checks: $100 million in stimuli monitors generated the treatment for 140 mil income tax filers to boost individual using which help expand the newest cost savings.

Bank takeovers: $thirteen.2 mil pulled down so far regarding the FDIC’s put insurance rates finance immediately following 19 financial disappointments into the 2008.

Money-business guarantees: $50 million for the insurance policies for cash-industry fund. New Provided up coming started to lend an unlimited amount of cash to finance banks’ commands from obligations regarding money-sector finance. This new Given upcoming agreed to buy around $69 billion from inside the currency-industry financial obligation myself. When you look at the October, this new Provided told you it could loan up to $600 million right to currency-industry loans.

Houses save: $three hundred mil approved getting insurance coverage of the latest 31-season, fixed-rate mortgage loans to possess at the-exposure consumers. The bill boasts $sixteen payday loans Horn Hill billion during the taxation credit for earliest-go out home buyers. But loan providers was indeed slow to help you sign up.

Deposit insurance policies: $250,000 during the insurance coverage to have focus-impact account, upwards from $100,000. Brand new FDIC plus approved endless claims towards low-interest- impact levels and you can recently provided unsecured bank financial obligation.

Providers stimuli: $68 million into the income tax vacation trips in order to companies to simply help loosen the brand new stranglehold into the companies looking to loans day-after-day performing expenses.

Federal national mortgage association, Freddie Mac: $200 billion in order to bail-out the mortgage finance beasts. Government authorities thought control of the firms plus the $5 trillion home based fund they right back.

AIG: $152.5 billion restructured bailout, along with an immediate money compliment of prominent shares, good easier words with the a great $60 million financing, and the new facilities meant to undertake the businesses exposure to credit-standard exchanges.

But AIG said it would features trouble paying back the borrowed funds

Industrial paper business: $243 billion inside the corporate loans bought up to now because of the Fed as the so-entitled Commercial Paper Funding Facility unsealed.