For fixing leaks in TARP-funded banks

Uh, oh. Don’t let Congress know about the profits made from TARP. They’ll figure out a way to do these sort of things to raise money so they can spend more. On the other hand, if it allowed for lowing taxes… Right. Haha! That’ll happen!

According to a report in The Banker magazine, it seems that the TARP was successful to the US in terms of return on investment and the stated goal of the program. The following are some of the key points quoted by the magazine based on the July report from SIGTARP, the body monitoring the various programs under the umbrella of the TARP:

* 87 TARP recipients had repaid all or a portion of their principal or repurchased shares, for a total of $201.5B.
* A total of just $182.5B of disbursed TARP funds is outstanding.
* By July, the US government had received $22.7B in interest, dividends, sale of warrants, stocks and other income.
* Of the 707 banks that received almost $205B in TARP funds through the Capital Purchase Program (CPP), 76 have fully repaid their funds to a total of $138.4B. Hence the US has recovered 67.5% of the funds invested in banks.
* Of the remaining banks that owe money to the US, 580 of them owe less than $100M.
* The US government reaped a high rate of return on the TARP funds that have been fully repaid already. The top 15 by total proceeds yielded an average non-annualized return of 10.2%.




  1. Dallas says:

    Successful but sheeple have no clue TARP was about keeping the system on the rails regardless of how bitter the pill was. Those that were wrong about TARP will quickly change the subject.

    Thank you President Obama for looking past the rhetoric and understanding that the financial system, despite it’s corrupt side, is an underpinning of the US economy. It took great courage to fight the GOPukes, teabaggers, birthers and the facebook buffoon from Alaska.

  2. Thomas says:

    Most people were on-board with loans to failing companies in order to keep the entire financial industry from melting down. I would have preferred a solution that helped the individuals recover from the loss rather than protecting business that made bad decisions but I can accept the TARP solution. In fact, Congress so hounded the people that took TARP money that I doubt any institution will take TARP money in the future. I do not have issue with Obama for continuing TARP. Most of us however have major issue with Obama bailing out the automakers to save his union cronies and the abject failure that is the porkulus bill (although it has succeeded in sending the debt to stratospheric levels).

    #2
    You can thank Bush for TARP since he was the one that initiated and it was Bush that was generous enough to keep Obama informed. Most Presidents would have simply shut out their successor until inauguration day.

  3. Wake-up Fools says:

    #2 Dull-Ass “The Obama Tool”,

    Just a reminder:

    “The Troubled Asset Relief Program, commonly referred to as TARP or RCP, is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector which was signed into law by U.S. President George W. Bush on October 3, 2008. It is the largest component of the government’s measures in 2008 to address the sub-prime mortgage crisis.”

    THANKS TO PRESIDENT GEORGE W. BUSH!!!

  4. msbpodcast says:

    So the US$700+ billion have been paid back, have they?

    So, down what accounting hole did that money disappear?

    If it was paid back, the repayment should have erased the debt, right? So my taxes should reflect that right?

    Funny but I sort of doubt that it does…

  5. MikeN says:

    The first two bullets suggest a total of $380 billion, with a return of 6% in two years. Later it says $200 billion with a 10% return.

    What happened to the $800 billion number we were told?

    Regardless of the numbers, getting a small return on investing money in a bankrupt company, is not a real profit. It is a high risk endeavor, which is why others were not willing to make such an investment.

    This sounds like more talking points for people like Dallas. Last time he was praising Obama’s bailout of GM, which it turns out the repayment happened with government money.

  6. ramuno says:

    #5 You repeat the “no” Party’s mantra about taxes. The Rich still have the Bush cuts, the Middle class went down under the new guy and the poor don’t make enough to pay taxes. Why not comment on something real?

  7. chuck says:

    So the money we (US taxpayers) had to borrow to fund the TARP program is now being paid back. And is this money being used to pay back the debt we incurred? Or is it just being spent on something else.

    “A total of just $182.5B of disbursed TARP funds is outstanding.”

    Profit is what you get when you earn more than you invested. Only the government would think that falling short by $182B is somehow profit.

  8. jimmy james says:

    #2, yeah, we need banks… not THESE banks.

    The criminal activities of these banksters should have been prosecuted, not rewarded.

    These banks that made huge mistakes should have failed, and well run banks and new banks taken their place.

    Where are the cops? Where are the handcuffs. History will show this was the greatest heist in american history. After a decade of fleecing, they stole from us again.

  9. Mextli says:

    #2 “You can thank Bush for TARP since he was the one that initiated and it was Bush that was generous enough to keep Obama informed. Most Presidents would have simply shut out their successor until inauguration day.”

    It was also one of the few times BO had the sense to keep his mouth shut and stand aside.

    Now lets see what the Government Motors IPO a.k.a., the union reward, is like.

  10. Awake says:

    TARP kept the US economy from utterly imploding, it literally saved the US from becoming another Haiti over a period of a couple of weeks. Thank god that Bush had enough moral courage for once to tighten his sphincter and instead of gushing more shit on America, he took the advice of someone else besides God talking to him, and implemented the emergency measure called TARP.

    Without TARP, we might be living on the barter system right now, with America having no economic infrastructure.

    TARP was one of the most bitter pills that ‘conservatives’ have ever had to swallow, because it exposed just how utterly wrong their monetary and regulatory policies were right from the core.

    Let us not forget that at the end of the last 8 years of ‘conservative’ leadership there was a MONTHLY private industry job loss of over 700,000 jobs, and was still rising, compared to a 60,000 private industry job gain recorded last month. The biggest housing crash in history was in full swing at the end of Bush’s conservative leadership. The US manufacturing base had been decimated, with job exports ENCOURAGED by conservatives in order to prop up corporate bottom lines.

    TARP gave the incoming administration enough breathing room to at least start fixing a destroyed US economy.

    Oh, and BTW… the cost of the Iraq war has been close to $3 Trillion in direct and consequential costs, how are we going to go about recovering that taxpayer money?

  11. bobbo, not a student of the dismal science, but I am on a budget says:

    Wasn’t the TARP for 750 Billion, but support programs after that promised or guaranteed 12 TRILLION MOTHER FRIGGIN DOLLARS and the TARP was paid back by the profit banks ARE STILL MAKING by borrowing fed funds at near zero interest, investing in T-Bills for a sure 3-4 percent return???

    The only “alternative” to the bail out I could think of was letting the banks fail and immediately funding all the remaining banks with huge cash reserves. The small remaining solvent banks could only make money by loaning their reserves out. Who know the consequences of that????

    Still–until our society FIRMLY understands wallstreet is 1% Capital Formation and 99% a Criminal Conspiracy to transfer wealth from the poor, middle, and rich class to the super rich class===AMerican will remain in the trash can the RePUKEaTARDS have been engineering for decades now.

    Silly Hoomans.

  12. Greensaab says:

    So how has this helped me? My bank is screwing me (credit union membership in the works.

  13. Billy Bob says:

    You and the media fell for a scam. They are paying back TARP by getting the money from the Fed (i.e. the taxpayer) via other programs like TALF, PPIP, FDIC guaranteed debt raises, etc. They aren’t paying back the $7T in total support they’ve gotten from these programs, just the TARP because it had executive comp strings attached.


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