Question

While it was once feared the government would be holding companies like GM, AIG and Citigroup for several years, those companies are preparing to buy back the Treasury's stake and emerge from TARP within a year.[5] Of the $245 billion invested in U.S. banks, over $169 billion has been paid back, including $13.7 billion in dividends, interest and other income, along with $4 billion in warrant proceeds as of April 2010. AIG is considered "on track" to pay back $51 billion from divestitures of two units and another $32 billion in securities.[4] In March 2010, GM repaid more than $2 billion to the U.S. and Canadian governments and on April 21 GM announced the entire loan portion of the U.S. and Canadian governments' investments had been paid back in full, with interest, for a total of $8.1 billion.[6]

Answer 1

TARP allowed the U.S. government to stabilize the financial market by injecting cash into troubled financial institutions and car manufacturers. It resulted in significant repayments including GM's full repayment of its loan with interest. This program, in conjunction with tax rebates from the ARRA, helped mitigate the financial crisis impacts.

Step-by-step explanation:

The passage provided discusses the Troubled Asset Relief Program (TARP), a crucial part of the U.S. government's response to the financial crisis in 2008. The program enabled the government to provide assistance to faltering banks and corporations, such as General Motors and Chrysler, to prevent further economic downturn and potential job losses. TARP, along with other measures like the American Recovery and Reinvestment Act which offered tax rebates to boost consumer spending, helped stabilize the financial market following the crisis. As a consequence of these efforts, institutions like AIG, Citigroup, and GM were able to start repaying their obligations to the government, with GM repaying its loan in full with interest by April 21, 2010. These repaid funds included over $169 billion out of the $245 billion initially invested in U.S. banks, as well as additional income through dividends, interest, and warrant proceeds.