Treasury Secretary Timothy Geithner told the Congressional Oversight Panel on Tuesday that taxpayers were likely to get most of their investments back from bailouts in the banking, insurance, and automotive businesses.
Geithner said that banks have repaid about $21 billion, 75 percent of the bailout money they received. He said General Motors and Chrysler will repay the nearly $60 billion that they received. But he acknowledged that insurer American International Group Inc. is unlikely to be able to repay the entire $182 billion it received.
Geithner blamed banks and other loan servicers for the apparent failure of mortgage modification programs, which received about $75 billion in tax incentives to reduce borrowers’ monthly payments. “Servicers have done a terrible job of making sure they have done everything they can” to help struggling home owners, Geithner said.
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Source: Associated Press, Marcy Gordon (06/22/2010)
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