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The government interventions during the subprime mortgage crisis were a response to the 2007–2009 subprime mortgage crisis and resulted in a variety of government bailouts that were implemented to stabilize the financial system during late 2007 and early 2008.
In total, U.S. government economic bailouts related to the 2007–2008 financial crisis had federal outflows (expenditures, loans, and investments) of $633.6 billion and inflows (funds returned to the Treasury as interest, dividends, fees, or stock warrant repurchases) of $754.8 billion, for a net profit of $121 billion. [94]
The first half of the bailout money was primarily used to buy preferred stock in banks instead of troubled mortgage assets. [11] In January 2009, the Obama administration announced a stimulus plan to revive the economy with the intention to create or save more than 3.6 million jobs in two years. The cost of this initial recovery plan was ...
Government intervention supported taxpayers, but bank investors came up short. ... a $700 billion government bailout designed to keep troubled banks and other companies in operation.
Headquarters of AIG, an insurance company rescued by the United States government during the subprime mortgage crisis "Too big to fail" (TBTF) is a theory in banking and finance that asserts that certain corporations, particularly financial institutions, are so large and so interconnected that their failure would be disastrous to the greater economic system, and therefore should be supported ...
The bailout bill's final passage capped a tumultuous week of legislative efforts that President George W. Bush signed the Emergency Economic Stabilization Act into law on Oct. 3, 2008.
Federal officials insisted their emergency measures to shore up deposits wouldn't come at taxpayers' expense. But the public could still bear some indirect costs, one expert warned.
Writers such as Peter Wallison, a former Wall Street lawyer, Republican political figure, and longtime advocate of financial deregulation and privatization, argue that it was government intervention, such as allegedly requiring Fannie Mae and Freddie Mac to lower lending standards, [97] that caused the crisis in the first place and that ...