Exactly $300 billion of what did taxpayers guarantee when the Fed stepped in to provide support to Citigroup in November of 2008?
According to CNBC, that is the question that Rep. Alan Grayson is asking Neil Barofsky, the special inspector general for TARP.
It is a fair question considering that we needed an act of Congress to pass the $700 billion TARP program in the first place and yet the Treasury Department on its own accord, independent of Congress, signed on to guarantee an additional $300 billion of loans.
But that wasn't the only guarantee the Treasury made, the Treasury also back-stopped $118 billion in loans for Bank of America too during the crisis.
So between TARP and the additional loan guarantees the Treaury has exposed the tax-payer to over $1 trillion in risk, and yet Washington refuses to enact a substantive housing stimulus plan that would provide a bottom-up solution to the banking crisis.