Obama, Clinton Get Pinocchios for TARP Statements


At an event today in Youngstown, Ohio, former President Bill Clinton said, "You have been fully paid back for every nickel that was put into the financial industry plus interest. You got your money back." During the first debate, Obama used the same talking point, that the banks have repaid all of the TARP money. Obama said, "We also made sure that all the help that we provided those banks was paid back every single dime, with interest."

The Washington Free Beacon rates these claims five Pinocchios with their pants on fire.

Ally Financial, formerly General Motors’ in-house auto-loan shop, still owes the federal government more than $11 billion. Ally originally received $17.2 billion from the federal government but has repaid only $5.5 billion, less than a third of what it owes.

Several other banks still owe the government hundreds of millions including Synovus Financial ($967.9 million), Citizens Republic Bancorp ($300 million), and First Banks ($295.4 million).