The government has tens of billions of dollars left in the eye-popping $700 billion bank bailout fund created last fall, prompting a debate in Congress over what to do with it. The question of what to do with the money will grow more pressing in coming months as Congress takes a step back to consider the fate of the Troubled Asset Relief Program, or TARP.
Lawmakers had rushed to approve the money in October 2008 as Wall Street sat on the brink of collapse. Since then, even as the economy continues to wobble and high unemployment threatens the prospects for a speedy recovery; major banks have repaid $70 billion in assistance and expressed growing optimism about their ability to function without government assistance.
The Government Accountability Office, the nonpartisan investigative arm of Congress, estimated on Thursday that the government has about $328 billion left in the fund that hasn’t been spent or legally committed. According to GAO, the government has disbursed approximately $339 billion and promised $102 billion more. That leaves some $259 in the fund plus the $70 billion banks have repaid.
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