Michael Whitney

FIREDOGLAKE/ OXDOWN GAZETE

Friday April 24, 2009

If you’ve been following the news, you know by now that Bank of America is in debt to the American taxpayer in the amount of $45 billion – the amount of TARP funds (aka “bailout money”) that they received since last year.

But it turns out that a figure that you likely haven’t heard – $199.2 billion – paints a bit more of an accurate number on how much Bank of America will most likely “borrow” from the American people.

How do we figure?

$12 Billion in TARP Funds for AIG
In addition to the $45 billion in direct TARP funds mentioned above, Bank of America has received a total of $12 billion from AIG after its own bailout, all of which is directly attributable to financing from the Federal Reserve (AIG.com)

$98.2 Billion in Asset Guarantees Against Losses
Bank of America has received a taxpayer guarantee on $118 billion worth of toxic assets. Taxpayers are on the hook for up to $98.2 billion in losses – $7.5 billion from the Treasury, $2.5 billion from the FDIC, and $88.2 billion from the Federal Reserve. (New York Times, 1/16/09)

$44 Billion in Asset Guarantees Through the FDIC’s TLGP
That’s a lot of initials, but essentially, the $44 billion is backed by new bond issuances under the Debt Guarantee Program. This is more than any other financial institution. (Barrons 4/20/09)

Sick of This?
So where does that leave Bank of America? Essentially, it leaves them in our debt. It’s time that Bank of America’s CEO, Ken Lewis, answers to the decisions that he’s made during his tenure as Chief Executive Officer. It’s just one of the many reasons why we’re calling for him to be fired next week during Bank of America’s annual shareholder meeting.

If you’ve yet to sign your name to our list of now-tens of thousands of fellow taxpayers who have called for CEO Ken Lewis to go, go to TakeBackTheEconomy.org.