Eight years after taxpayers rescued the U.S. financial system, some of the country’s largest banks, including JPMorgan Chase and Wells Fargo, continue to receive billions in bailout money, The Washington Post reports.
According to government data, Wells Fargo is eligible for up to $1.5 billion in bailout funds over the next seven years. JPMorgan and Bank of America could receive $1.1 billion and $964 million, respectively.
The continuous flow of funds is a remnant of the $700 billion bailout effort, known as the Troubled Asset Relief Program, which was put in place during the financial crisis. Some of that money, about $28 billion, was carved out to help distressed homeowners by paying banks to lower their interest rates and monthly payments.
That plan, known as the Home Affordable Modification Program, has undergone several revamps over the last few years and has fallen short of helping the 3 million to 4 million homeowners the Obama administration initially hoped. The program, however, continues to operate and big banks continue to be paid based on how many homeowners they help.
But the stream of cash is worrisome to Office of the Special Inspector General for the Troubled Asset Relief Program, or SIGTARP, the chief watchdog of the financial crisis-era bailouts.
Many of the banks have repeatedly broken the rules of the program, the office says. The banks dispute that statement.
