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U.S. Has $7.6 Trillion Left to Fix Banks: KBW

The U.S. government has tapped $3.1 trillion to date in efforts to resolve the current financial crisis, roughly 29% of the $10.7 trillion it has at its disposal.
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The U.S. government has tapped $3.1 trillion to date in efforts to resolve the current financial crisis, roughly 29% of the $10.7 trillion it has at its disposal, according to research published Monday by Keefe, Bruyette & Woods.

The largest portion of available funds -- $1.8 trillion -- is in the commercial paper funding facility, which was set up by the

Federal Reserve

to provide short-term funding to banks. The Fed has provided about $250 billion in such funding so far, the report states.

The $700 billion Troubled Asset Relief Program, which has invested huge sums in

AIG

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and

Citigroup

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and

Bank of America

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, is probably the best-known and most controversial government program. That is because the investments are in preferred equity, which is presumed to have a greater likelihood of becoming worthless.

The less-notorious lending programs have provided an important backstop to relatively healthier institutions, including

General Electric

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,

JPMorgan Chase

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and

Goldman Sachs

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.

These programs include a $1.45 trillion program to buy mortgage-related debt from government sponsored entities

Fannie Mae

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,

Freddie Mac

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and

Ginnie Mae

and the Term Asset-Backed Lending Facility (TALF), a program recently expanded to $1 trillion (with $100 billion coming from TARP). The TALF is intended to guarantee pools of consumer-related debt such as credit cards and auto loans.