14 years later, the effects of the 2008 bailout are still being counted
Spencer Platt // Getty Images
14 years later, the effects of the 2008 bailout are still being counted
People protest and wave american flags outside of the New York Stock Exchange October 13, 2008 in New York City, holding a black sign reading, “bail us out”.
It was Monday afternoon in late September 2008 when congressional leaders rejected an initial plan to bail out America’s failing banks, plummeting the Dow Jones Index and wiping a record $1.2 trillion from American businesses.
The Great Recession was not just an American crisis but a global one in which developed countries’ interconnected banking systems were stressed simultaneously. World leaders eventually capitulated to calls by U.S. Treasury Secretary Henry Paulson and others to pump banks with capital to avoid economic collapse.
The idea of taxpayers bailing out Wall Street for short-sighted lending practices was wildly unpopular. One Republican congressman referred to the proposal as “a huge cow patty with a piece of marshmallow stuck in the middle of it.” Still, leaders worried the U.S. could plunge into a second Great Depression without action.
Packaged with financial support for homeowners and stimulus for automakers meant to prevent job losses, the concept eventually won approval in October 2008 when Congress passed the Troubled Asset Relief Program and former President George W. Bush signed the measure into law.
Stacker analyzed data about the 2008 Troubled Asset Relief Program compiled by ProPublica to see which states’ businesses have been the most responsible in paying their loan money 14 years later and found that 34 states have outstanding or failed investments that will not be paid back.
TARP was massive in its potential scope, authorizing up to $700 billion in funding, though the Treasury utilized only a fraction. The commitments broke down into $250 billion for banks, $27 billion for credit markets, $82 billion for the automotive industry, $70 billion to support the insurance giant American International Group, and $46 billion to help Americans avoid foreclosure on their homes.
Congress later passed legislation lowering the disbursement cap for TARP to $475 billion in 2010 and lost its authority to approve any new bailout commitments that same year.
By 2013, the watchdog group overseeing TARP and enforcing its rules pursued charges against 107 senior bank officials alleged to have misused bailout funds, most of whom received prison time, according to an analysis by the Washington Post. In 2016, TARP wound down its investments, including in companies such as AIG, declaring it had recouped disbursements.
In total, $635 billion has been distributed; $17 billion are considered lost or a failed investment.
Funds that were committed to helping Americans avoid foreclosure and were never meant to be repaid were ongoing up to the onset of the COVID-19 pandemic, which saw the U.S. government issue $800 billion in Paycheck Protection Program disbursements intended to keep Americans employed—nearly all of which is expected to be forgiven.
Read on to see how businesses in your state repaid their funds—or didn’t.
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Editor’s note: A previous version of this story stated the amounts as “loans” and has been updated to more broadly encompass “disbursements.”
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#34. Minnesota
A beautiful bridge leading to Minneapolis, Minnesota downtown against a pastel sky.
– Percent of total disbursement unrepaid: 0.03%
– Unrepaid bailout amount: $2.2 million (out of $7.4 billion disbursed to Minnesota)
– Per capita disbursement: $1,298 with $0.38 lost per capita
– Single biggest disbursement: $6.6 billion to U.S. Bancorp
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#33. Pennsylvania
An aerial panorama of Allentown, PA on a sunny day.
– Percent of total disbursement unrepaid: 0.08%
– Unrepaid bailout amount: $8.5 million (out of $10.2 billion disbursed to Pennsylvania)
– Per capita disbursement: $787 with $0.66 lost per capita
– Single biggest disbursement: $7.6 billion to PNC Financial Services
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#32. Iowa
Iowa City, Iowa downtown from above.
– Percent of total disbursement unrepaid: 0.09%
– Unrepaid bailout amount: $3.2 million (out of $3.6 billion disbursed to Iowa)
– Per capita disbursement: $1,124 with $1.00 lost per capita
– Single biggest disbursement: $3.4 billion to Wells Fargo Bank, NA
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#31. Virginia
Fredericksburg, Virginia sunrise over the city.
– Percent of total disbursement unrepaid: 0.12%
– Unrepaid bailout amount: $89.2 million (out of $75.9 billion disbursed to Virginia)
– Per capita disbursement: $8,782 with $10.32 lost per capita
– Single biggest disbursement: $71.6 billion to Freddie Mac
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#30. North Carolina
An aerial view of downtown Charlottle, NC.
– Percent of total disbursement unrepaid: 0.12%
– Unrepaid bailout amount: $59.2 million (out of $49.4 billion disbursed to North Carolina)
– Per capita disbursement: $4,683 with $5.61 lost per capita
– Single biggest disbursement: $45.0 billion to Bank of America
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#29. New Jersey
A park lined with benches and lights leading to downtown Jersey City, NJ.
– Percent of total disbursement unrepaid: 0.19%
– Unrepaid bailout amount: $8.1 million (out of $4.3 billion disbursed to New Jersey)
– Per capita disbursement: $465 with $0.88 lost per capita
– Single biggest disbursement: $3.2 billion to JPMorgan Chase subsidiaries
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#28. Kansas
Downtown historic Topeka, KS.
– Percent of total disbursement unrepaid: 0.19%
– Unrepaid bailout amount: $0.3 million (out of $142.4 million disbursed to Kansas)
– Per capita disbursement: $49 with $0.09 lost per capita
– Single biggest disbursement: $36.3 million to Fidelity Financial Corp
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#27. Mississippi
Downtown Jackson, MS at night with lit buildings.
– Percent of total disbursement unrepaid: 0.30%
– Unrepaid bailout amount: $2.0 million (out of $665.5 million disbursed to Mississippi)
– Per capita disbursement: $226 with $0.68 lost per capita
– Single biggest disbursement: $215.0 million to Trustmark Corp
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#26. Texas
Downtown Dallas, TX cityscape.
– Percent of total disbursement unrepaid: 0.31%
– Unrepaid bailout amount: $15.9 million (out of $5.2 billion disbursed to Texas)
– Per capita disbursement: $176 with $0.54 lost per capita
– Single biggest disbursement: $2.3 billion to Comerica Incorporated
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#25. Nevada
A view of the Reno, NV downtown from the hills above the city.
– Percent of total disbursement unrepaid: 0.41%
– Unrepaid bailout amount: $1.4 million (out of $340.1 million disbursed to Nevada)
– Per capita disbursement: $108 with $0.44 lost per capita
– Single biggest disbursement: $196.2 million to Nevada Affordable Housing Assistance Corporation
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#24. Georgia
Downtown Augusta, GA by the river.
– Percent of total disbursement unrepaid: 0.45%
– Unrepaid bailout amount: $29.6 million (out of $6.7 billion disbursed to Georgia)
– Per capita disbursement: $616 with $2.74 lost per capita
– Single biggest disbursement: $4.9 billion to SunTrust
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#23. Louisiana
An aerial view of downtown Baton Rouge, LA on the water.
– Percent of total disbursement unrepaid: 0.50%
– Unrepaid bailout amount: $2.7 million (out of $537.8 million disbursed to Louisiana)
– Per capita disbursement: $116 with $0.58 lost per capita
– Single biggest disbursement: $300.0 million to Citizens Republic Bancorp
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#22. Colorado
An aerial view of colorful downtown Denver, CO.
– Percent of total disbursement unrepaid: 0.73%
– Unrepaid bailout amount: $5.3 million (out of $728.6 million disbursed to Colorado)
– Per capita disbursement: $125 with $0.92 lost per capita
– Single biggest disbursement: $428.9 million to Specialized disbursement Servicing LLC
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#21. Ohio
Downtown Columbus, OH on the river.
– Percent of total disbursement unrepaid: 0.80%
– Unrepaid bailout amount: $69.5 million (out of $8.7 billion disbursed to Ohio)
– Per capita disbursement: $738 with $5.90 lost per capita
– Single biggest disbursement: $3.4 billion to Fifth Third Bancorp
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#20. Arizona
Buildings surrounded by palm trees and mountains in Scottsdale, AZ.
– Percent of total disbursement unrepaid: 0.85%
– Unrepaid bailout amount: $2.6 million (out of $309.3 million disbursed to Arizona)
– Per capita disbursement: $43 with $0.36 lost per capita
– Single biggest disbursement: $296.1 million to Arizona (Home) Foreclosure Prevention Funding Corporation
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#19. California
Tall buildings in downtown Los Angeles, CA surrounded by mountains.
– Percent of total disbursement unrepaid: 1.09%
– Unrepaid bailout amount: $362.8 million (out of $33.2 billion disbursed to California)
– Per capita disbursement: $847 with $9.25 lost per capita
– Single biggest disbursement: $25.0 billion to JPMorgan Chase
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#18. New York
Endless buildings in downtown New York City, NY.
– Percent of total disbursement unrepaid: 1.36%
– Unrepaid bailout amount: $2.3 billion (out of $168.1 billion disbursed to New York)
– Per capita disbursement: $8,473 with $115.26 lost per capita
– Single biggest disbursement: $67.8 billion to AIG
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#17. Florida
Downtown Sarasota, FL on the ocean.
– Percent of total disbursement unrepaid: 1.52%
– Unrepaid bailout amount: $105.4 million (out of $6.9 billion disbursed to Florida)
– Per capita disbursement: $318 with $4.84 lost per capita
– Single biggest disbursement: $5.0 billion to PHH Mortgage, a subsidiary of Ocwen Financial Corporation
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#16. Alabama
Homes and buildings in downtown Mobile, AL.
– Percent of total disbursement unrepaid: 1.68%
– Unrepaid bailout amount: $64.0 million (out of $3.8 billion disbursed to Alabama)
– Per capita disbursement: $754 with $12.70 lost per capita
– Single biggest disbursement: $3.5 billion to Regions Financial Corp.
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#15. New Mexico
Houses and downtown Albuuerque, NM.
– Percent of total disbursement unrepaid: 1.86%
– Unrepaid bailout amount: $0.9 million (out of $48.1 million disbursed to New Mexico)
– Per capita disbursement: $23 with $0.42 lost per capita
– Single biggest disbursement: $35.5 million to Trinity Capital Corporation
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#14. Tennessee
Downtown Nashville, TN from a bridge on the water.
– Percent of total disbursement unrepaid: 3.40%
– Unrepaid bailout amount: $54.6 million (out of $1.6 billion disbursed to Tennessee)
– Per capita disbursement: $230 with $7.83 lost per capita
– Single biggest disbursement: $866.5 million to First Horizon National
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#13. Wisconsin
Downtown Madison, WI on the water.
– Percent of total disbursement unrepaid: 4.64%
– Unrepaid bailout amount: $116.7 million (out of $2.5 billion disbursed to Wisconsin)
– Per capita disbursement: $427 with $19.80 lost per capita
– Single biggest disbursement: $1.7 billion to Marshall & Ilsley
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#12. Illinois
An aerial view of Chicago, IL on the water.
– Percent of total disbursement unrepaid: 4.79%
– Unrepaid bailout amount: $260.5 million (out of $5.4 billion disbursed to Illinois)
– Per capita disbursement: $429 with $20.56 lost per capita
– Single biggest disbursement: $1.6 billion to Northern Trust
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#11. Oklahoma
Downtown cityscape of Oklahoma City, OK.
– Percent of total disbursement unrepaid: 5.05%
– Unrepaid bailout amount: $18.1 million (out of $358.4 million disbursed to Oklahoma)
– Per capita disbursement: $90 with $4.54 lost per capita
– Single biggest disbursement: $232.8 million to MidFirst Bank
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#10. Maryland
Downtown Baltimore, MD at twilight.
– Percent of total disbursement unrepaid: 5.15%
– Unrepaid bailout amount: $23.6 million (out of $458.7 million disbursed to Maryland)
– Per capita disbursement: $74 with $3.83 lost per capita
– Single biggest disbursement: $151.5 million to Provident Bankshares Corp.
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#9. Kentucky
Highways and bridges leading into downtown Louisville, KY.
– Percent of total disbursement unrepaid: 6.74%
– Unrepaid bailout amount: $38.9 million (out of $576.3 million disbursed to Kentucky)
– Per capita disbursement: $128 with $8.62 lost per capita
– Single biggest disbursement: $200.3 million to U.S. Bank National Association
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#8. Indiana
Indianapolis, IN skyline with blue sky behind and a rocky river in the foreground.
– Percent of total disbursement unrepaid: 9.16%
– Unrepaid bailout amount: $87.3 million (out of $953.1 million disbursed to Indiana)
– Per capita disbursement: $140 with $12.82 lost per capita
– Single biggest disbursement: $284.0 million to Indiana Housing and Community Development Authority
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#7. Arkansas
A bridge and river in front of downtown Little Rock, AR.
– Percent of total disbursement unrepaid: 12.36%
– Unrepaid bailout amount: $40.3 million (out of $326.2 million disbursed to Arkansas)
– Per capita disbursement: $108 with $13.32 lost per capita
– Single biggest disbursement: $75.0 million to Bank of the Ozarks
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#6. Michigan
A blue bridge across the Grand River in Grand Rapids, MI.
– Percent of total disbursement unrepaid: 15.50%
– Unrepaid bailout amount: $12.5 billion (out of $80.8 billion disbursed to Michigan)
– Per capita disbursement: $8,038 with $1246.04 lost per capita
– Single biggest disbursement: $50.7 billion to General Motors
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#5. Missouri
Tall buildings in downtown Kansas City, MO.
– Percent of total disbursement unrepaid: 16.46%
– Unrepaid bailout amount: $272.2 million (out of $1.7 billion disbursed to Missouri)
– Per capita disbursement: $268 with $44.12 lost per capita
– Single biggest disbursement: $781.7 million to CitiMortgage, Inc.
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#4. South Carolina
An aerial view of beautiful homes and downtown Charleston, SC. against the sunset.
– Percent of total disbursement unrepaid: 20.49%
– Unrepaid bailout amount: $223.7 million (out of $1.1 billion disbursed to South Carolina)
– Per capita disbursement: $210 with $43.10 lost per capita
– Single biggest disbursement: $347.0 million to South Financial Group
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#3. Washington
Tall buildings in the Seattle, WA skyline.
– Percent of total disbursement unrepaid: 21.47%
– Unrepaid bailout amount: $212.5 million (out of $989.8 million disbursed to Washington)
– Per capita disbursement: $128 with $27.46 lost per capita
– Single biggest disbursement: $303.0 million to Sterling Financial Corp
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#2. Idaho
Downtown Boise, ID surrounded by trees.
– Percent of total disbursement unrepaid: 22.69%
– Unrepaid bailout amount: $14.1 million (out of $62.1 million disbursed to Idaho)
– Per capita disbursement: $33 with $7.41 lost per capita
– Single biggest disbursement: $27.0 million to Intermountain Community Bancorp
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#1. Hawaii
A beautiful resort on the beach in Hawaii.
– Percent of total disbursement unrepaid: 44.10%
– Unrepaid bailout amount: $60.0 million (out of $136.0 million disbursed to Hawaii)
– Per capita disbursement: $94 with $41.60 lost per capita
– Single biggest disbursement: $135.0 million to Central Pacific Financial Corp
