Financial Rescue

Living Nicely Off the Crumbs of TARP


Big banks weren't the only ones to benefit from the financial bailout. The $700 billion program relies on private companies for services ranging from auditing to paper shredding. Some contractors reaped millions for their work. All told, the government has 96 agreements with vendors worth $436.7 million, says the congressional overseer for the Troubled Asset Relief Program. The largest amounts went to home-financing giants Fannie Mae and Freddie Mac to administer and monitor Treasury's mortgage modification program. Treasury signed 35 contracts for legal services. Cadwalader, Wickersham & Taft got the most at $19 million.

Fannie Mae: $111.3 million

For administering Treasury's mortgage modification program

Freddie Mac: $79.3 million

For making sure loan servicers comply with the program

Bank of New York Mellon: $23.8 million

For acting as the custodian bank for the securities acquired by TARP

Pricewaterhouse Coopers: $23.5 million

Mostly for creating the bailout program's internal controls

Alliance-Bernstein: $21.2 million

For asset management services related to TARP investments

Cadwalader, Wickersham & Taft: $19 million

For legal services related to the auto bailout

Data: Treasury Dept.

Schmidt is a reporter for Bloomberg News in Washington.

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