TARP repayments of $194 billion exceed outstanding balance of $190 billion

The Hill ^ | June 11, 2010 | Jay Heflin

[CutePuppy]

The Treasury Department on Friday announced that repayments to the Troubled Asset Relief Program (TARP) have for the first time surpassed the total amount of TARP funds that remain outstanding.

Today's report to Congress shows that through the end of May, TARP repayments reached $194 billion. That figure exceeds outstanding TARP funds that total $190 billion.

TARP repayments have continued to exceed expectations, substantially reducing the projected cost of this program to taxpayers, said Herb Allison, assistant secretary for financial stability, in prepared remarks. This milestone is further evidence that TARP is achieving its intended objectives: stabilizing our financial system and laying the groundwork for economic recovery.

Treasury's sale of 1.5 billion shares of Citigroup stock that provided gross proceeds of $6.18 billion helped the Department surpass the outstanding balance. The Treasury expects repayments to continue to exceed outstanding amounts.

[WVKayaker]

Treasury's sale of 1.5 billion shares of Citigroup stock that provided gross proceeds of $6.18 billion helped the Department surpass the outstanding balance. Dimocraps Ponzi scheme...

I am convinced that the banks are playing the stock markets and artificially generating "profits" which they use to "pay back"...

[WVKayaker]

Well, good morning to you, too.

I see you have a good handle on high finance, and a profound way of getting attention.

All of the banks are buying and selling and manipulating the markets, imho. I could be wrong, but there is no sane reason to explain the "exuberance" that continues to keep the markets hovering around the 10k range. I know they aren't lending to make the obscene profits they are reporting. Citibank (et al) is another arm of the Obama WH.

My reference to you is to get a life and quit attacking when you don't need it. I would be happy for you to debate my points. I have been proven wrong in the past and didn't explode. I have also been right more than once!

Are you still in the markets?

[meyer]

Misleading headline. It tries to imply that repayment has exceeded the amount borrowed, when actually, repayment has just passed the halfway point. Considering many banks were coerced into taking TARP funds by our corrupt government, I don’t think that this “milestone” means much of anything.

[silverleaf]

every repayment of TARP reduces the “Bush deficit” that was “inherited” by zerO

[CutePuppy]

Banks have repaid outstanding bailout balance and then some, Treasury says - LAT,

..... TARP was created by Congress at the height of the financial crisis in 2008 and has been highly controversial from the start. Congress originally rejected the fund, which was proposed by the Bush administration to purchase toxic subprime mortgage securities from banks. It was approved after adding more conditions and congressional oversight.

But then-Treasury Secretary Henry Paulson quickly changed its main use, funneling much of the money into banks to stabilize their financial condition and give them capital to make loans. As the financial crisis eased and the economy has recovered, banks have scrambled to repay the money and get out from under tough executive compensation restrictions.

The Treasury Department also has made money from mandated dividend payments and the sale of stock warrants the government received as part of the investment. Of $205 billion injected into banks, $137 billion has been repaid. In addition, the Treasury has received $23 billion in dividends, interest and other income.

The repayments have helped dramatically reduce the projected TARP losses. In August, the Obama administration estimated losses of $341 billion. That figure was reduced last month to $105.4 billion. No additional TARP money can be spent after October, when the fund expires.

Although the administration has been increasingly optimistic about the eventual losses from the TARP fund, the panel set up by Congress to oversee it has been critical of the taxpayer exposure.

On Thursday, the Congressional Oversight Panel said taxpayers still "remain at risk for severe losses" from the bailout of insurance giant American International Group. Much of the $182 billion committed to AIG comes from the Federal Reserve, but Treasury committed $70 billion of TARP money to save the company from bankruptcy. As of May 31, AIG had received $48 billion of that money.

Some TARP money will never come back. For example, the administration has committed $50 billion to provide cash incentives to banks to modify mortgages of homeowners in danger of foreclosure. .....

[blueyon]

Well if they are trying to spin this as a good thing then the credit goes to GEORGE BUSH as he took all the blame.

[silverleaf]

Does this mention the TARP that was paid to the unions and to keep GM afloat?

[SF_Redux]

so, who’s pockets is that going into?

[highpockets]

We will pay GM and the Unions until 0bama is out of office.

[highpockets]

TARP repayments are Bush's fault

[skr]

Not smart enough for this—where are they getting the money from?

[CutePuppy]

then the credit goes to GEORGE BUSH as he took all the blame.

One of the few things Bush has done right on economic issues. But tell that to GOP, which was against it from the beginning, and now stubbornly refuses to take credit for TARP taking us from the brink of financial collapse and starting of improvement in the economy. If it weren't for "Obama factor" and his misspent "stimulus" and other "stimulating" programs and regulations we would be in normal robust V-shape recovery at this point.

Instead, in absence of Republicans taking credit for TARP, Obama and Dems are attributing any improvement in the economic numbers (real, perceived and outright phony) to the phony "stimulus". The Party of No isn't even capable to say "yes" to the winning issue, so they are left with nothing.

[norwaypinesavage]

Hmmmmm... TARP worked, and Stimulus failed. That means: Bush = success; Obama = failure. I'm sure glad Pelosi has committed to “stop blaming Bush when the problems go away.”

[silverleaf]

seriously, the DNC talking heads all claim that zerO “inherited” a $1.4 trillion Bush deficit

$700 billion of which was TARP laid on in the last 3 months of Bush’s office

$350 Billion of which TARP money the democrats INSISTED Bush request in Dec 2008 so Barry would be able to deal with the “crisis” from his first day in office (and blame all the deficit on his predecessor-

These people are evil and anyone who doesn’t perceive their game is stupid

[Dilbert56]

TARP should have been ended the moment the immediate crisis had passed. If AIG had collapsed it would have taken other firms with it; it had tentacles everywhere. However, once that crisis was averted TARP should have been ended. Having a multi-hundred billion dollar slush fund lying around the Executive Branch was wrong. Congress alone is empowered to authorize expenditures. This was an abdication of its duties under the Constitution.

Shocker, the current president abused it. Hard to believe, I know.

[CutePuppy]

See post #7. Most banks repaid TARP with cash and equity, with interest. AIG (non-bank) was the biggest drag on TARP but as pieces of it (AIA, ILFC etc.) are sold off it may even break close to even.

Biggest problem will be automakers and GMAC / ResCap, which should not have even been eligible for TARP, but George W. Bush has decided to use TARP funds to really bail out the UAW, so now we (the people) “own” them and their liabilities including union pension plans.

[WVKayaker]

I understand what the articles say, and I can cut and paste quite well, too. I even know a little html. But, I have not seen your OPINION and/or ANALYSIS, which I am sure will elevate the conversation and enlighten all of us.

I consider the sources and generally speculate between the lines of anything that is reported about this White House. All of it is a house of cards and cannot be sustained without inflation. The pathway they seem to be choosing is taking us down the yellow brick road. We can already see behind the curtain.

I know I have gotten out of the markets, and now I'm putting it into dirt. I just bought another 345 acres of almost heaven. I am now over 10,000, and have holdings in five states. I don't trust the stock market, but I've kept enough cash around to pay the taxes and keep the snow plowed.

I am not a conspiracy Guy, but with all the collusion apparent, I do see it following a downward spiral. The scariest part is what they're trying to do with energy and control of the entire economy. In West Virginia, with lots of coal and eager East Coast market for electricity, there are Chicago investors building windmills all over our mountains. Obama wants to kill the coal power industry. It's all just more of the Chicago way of business. The windmills would never be a good investment on a level playing field. The same goes with photovoltaics. The only efficient use of the sun's energy at this time is to make hot water for bathing and heating. It actually pays back your investment in a short time.

Have a nice day. Enjoy the Kool-Aid.

[rawhide]

So what! This means nothing! So the receipts coming back exceed the remaining TARP balance, what is the big deal?