At the start, there was to be three sums of cash that would be used. The first being the largest at $350 billion, the second being $250 billion, and the last of $100 billion to be okayed with Presidential approval. The first sum of money has gone rather quickly.
Henry Paulson pushed $250 billion on banks, and of that amount $125 billion was forced on banks that didn’t want the money.
Also, of those banks was Goldman Sachs that was led by Mr. Paulson.
After that cash infusion, he gave AIG $40 billion. This came under great scrutiny after the higher-ups at AIG took vacations after receiving their infusion.
This has left Mr. Paulson with only $60 billion left in the first round.
The Wall Street Journal is reporting that last week, Paulson announced he would not use the Troubled Asset Relief Program (TARP) to purchase bad assets. This, however, was how Mr. Paulson sold his fraud-ridden program to the U.S. Government.
Now, over the past few days the big 3 automakers have been lobbying for some of the bailout money asking for $25 billion in what they call “emergency loans.”
Certainly one would think Henry Paulson would be willing to suck up this problem also, however that is not what he thinks. Bloomberg going on record that Mr. Paulson said “his $700 billion financial rescue plan isn’t intended for manufacturers.”
Picture courtesy of Reuters