TARP

As we noted earlier today, a federal grand jury in San Francisco has charged two former senior bank executives with conspiracy to commit securities fraud, securities fraud, falsifying corporate books and records, and lying to auditors. 

American International Group (“AIG”) has made another repayment of TARP funds. This time, it has sent the Treasury Department $2.15 billion, funded through the proceeds from the previously announced sale of AIG’s Nan Shan life insurance subsidiary. Technically, the proceeds were used to pay back the U.S.

Chrysler Group LLC today repaid its outstanding Troubled Asset Relief Program (TARP) loans. Its repayment comes six years before the scheduled maturity of those loans in 2017. 

Remember the brouhaha over TARP and what some expected to be the outlandish cost to the federal government? Well, not so fast. The Treasury Department has announced that six financial institutions have repurchased Troubled Asset Relief Program ("TARP") Capital Purchase Program ("CPP") investments, delivering a total of $475 million in proceeds to the government. 

In addition to having played a huge – and essential – role in saving the economy (ours and the world’s) from a second Great Depression, it appears that TARP is paying off. The Treasury Department has announced that it received $1.8 billion in additional net proceeds from the General Motors initial public offering (IPO), bringing overall net proceeds for taxpayers from the GM IPO to $13.5 billion. 

The Treasury Department has just releases a two year retrospective report on the Troubled Asset Relief Program (TARP). Its bottom line:  TARP played a “critical role” in recapitalizing the financial sector and restarting the credit markets, “which made it possible for businesses, municipalities, and families to borrow again, so that our economy could recover.” 

We think the Blank Rome law firm tells the story of the life and death of TARP best. You can see the piece,

American International Group Inc.

The Congressional Oversight Panel today released its September oversight report, "Assessing the TARP on the Eve of Its Expiration." The panel found that, although the Troubled Asset Relief Program (TARP) provided critical support to the financial markets at a time when market confidence was in freefall, the program has been far less effective in meeting its other statutory goals, such as supporting home values, retirement savings, and economic growth.&nb

The Treasury Department has sold another 1.1 billion shares of Citigroup common stock pursuant to the completion of its second trading plan with Morgan Stanley as sales agent.  To date, Treasury has sold a total of approximately 2.6 billion shares of Citigroup common stock at an average price per share of $4.03, and has received total gross proceeds of approximately $10.5 billion from the sale.