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The Top Ten Delinquent Bailout Recipients

Posted by - Wednesday, September 12th, 2012

American International Group Inc.(AIG) is back in the news after the U.S. Government sold of a large chunk of its remaining shares for a profit. About 553.8 million shares at $32.50 apiece changed hands, leading to a full recovery of the $182.3 billion rescue and a profit of about $12.4 billion. About 22% of AIG shares are still owned by the feds, which will undoubtedly lead to a pretty hefty return on the investment.

Unfortunately, that isn't the whole story. The money recouped was just from the shares the Treasury took as collateral. AIG received several other forms of support from the Treasury and Federal Reserve.

AIG is still on the hook for a lot of money, and plenty of other financial institutions are as well. Bailout recipients still owe the Treasury a whopping $179.1 billion.

A vast majority of the money is still locked up in the top ten debtors. Here is a look at what they owe...

#10.) $1,315,061,737 – Chrysler received a total of $10,748,284,222 from the Treasury, which doesn't even expect to recover the remaining balance from the battered relic of the heyday of American auto manufacturers.

#9.) $1,357,068,626 – The Oaktree PPIP Fund, L.P. Is one of several public-private investment program funds established to provide liquidity for the toxic assets that plagued institutions. With the anemic recovery and terrible housing market, there hasn't been much progress on recovering money.

#8.) $1,985,117,622 – The AG GECC PPIF Master Fund, L.P. Is another creation of the public-private investment program started by the Fed, Treasury and FDIC. This one has actually seen some of the best returns, 3.9%, of the bunch.

#7.) $2,286,312,500 – CIT Group is the lone bank in the top ten now. It is going to be a permanent fixture too. The Treasury lost the $2.3 billion when CIT Group went bankrupt in late 2009.

#6.) $2,943,867,264 – The Wellington Management Legacy securities PPIF Master Fund, L.P. Has fared far worse than the other two toxic asset funds we've listed. It still owes a vast majority of the $3.3 billion disbursed.

#5.) $5,309,686,706 – AIG needed $68 billion in TARP funding to stay afloat during the crisis and the company is slowly rebounding from a 98% loss in share value. It has done well so far, but it isn't done yet.

#4.) $10,752,090,618 – Ally Financial, formerly GMAC, is now 74% owned by taxpayers after the Treasury started to convert its preferred stock into common shares and sell them off. Unfortunately, a stress test determined Ally Financial needs to raise $11.5 billion in additional capital.

#3.) $27,197,156,843 - General Motors is arguably the worst off amongst car manufacturers that survived the recession. Unfortunately, sales have been lackluster and the company is losing tons of money from one of its flagship models, the Chevy Volt.

#2.) $51,199,000,000 – Freddie Mac, the nickname for the Federal Home Loan Mortgage Corporation, was bailed out through the Housing and Economic Recovery Act of 2008 instead of the TARP package. The government-sponsored enterprise differs little from its peer...

#1.) $90,617,000,000 – Fannie Mae easily takes the top position in the list. Along with Freddie Mac, it was completely exposed to the subprime mortgage crisis. Both buy mortgages from savings and loans, banks and other lenders to generate more cash. The goal is to have lenders to make more home loans. Together they hold or guarantee $5.4 trillion of mortgages, about half of the nation's outstanding home loans.

The combined $140 billion between the two is a stark reminder that America has yet to resolve its terrible housing crisis, even as housing sales slowly rise.

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