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- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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NEWSLETTERS & ALERTS
Taxpayers Still Bailing Out Wall Street, 8 Years Later
Eight years after taxpayers rescued the U.S. financial system, some of the country's largest banks, including JPMorgan Chase and Wells Fargo, continue to receive billions in bailout money, according to government data.
Wells Fargo is eligible for up to $1.5 billion in bailout funds over the next 7 years; JPMorgan and Bank of America could receive $1.1 billion and $964 million, respectively.
The continuous flow of funds is a remnant of the $700 billion bailout effort, known as the Troubled Asset Relief Program or TARP, put in place during the financial crisis. Some of that money, about $28 billion, was carved out to help distressed homeowners by paying banks to lower their interest rates and monthly payments.
The program, the Home Affordable Modification Program, has undergone several revamps over the last few years and fallen short of helping the 3 - 4 million homeowners the Obama administration initially hoped. But it continues to operate - HAMP will accept its last homeowner application at the end of this year - and big banks continue to be paid based on how many homeowners they help.
At least the money being paid to the banks is making it more likely that homeowners will qualify for help with their mortgages, said Alys Cohen, staff attorney for National Consumer Law Center. “To some extent, companies are being paid for what they should have been doing anyway,” said Cohen. “A large portion of the bailout money didn’t go to helping individuals or communities, but this money does.”
But the stream of cash for the big banks is worrisome to Office of the Special Inspector General for TARP, as many of the banks have repeatedly broken the rules of the program, including kicking homeowners out unfairly or making it too difficult to apply for the help.
The banks and the Treasury Department, which oversees HAMP, defend the program.