In a report dated Wednesday, economists at Merrill Lynch outline just how much of the $700 billion bailout cash has been spoken for:
The initial Capital Purchase Program (CPP) was intended to be a $250 billion program within the $700bn TARP program. The initial nine participating banks were promised $125bn in funding. A further $89bn has reportedly been approved as part of the bank capital injection program. This $214bn in funding represents 86% of the original program size. Separately, the Treasury has announced that a further $40bn has been allocated for the purchase of AIG preferred stock. This brings the total amount of TARP funds allocated to $254bn, of which only $115bn has actually been distributed to firms.