Home

TARP

US Treasury sells part stake in AIG

Wed, 05/25/2011 - 15:03 by Jamie Anderson

In a key move towards relinquishing its ownership in the American International Group Inc. (AIG), the U.S. Treasury sold 300 million shares in the financial services behemoth and garnered $8.7 billion from the offering.

Treasury to unwind more TARP

Wed, 07/21/2010 - 22:22 by Inderjit Singh

Washington -- The U.S. Treasury Department said it would start unwinding two options of the $700 billion bailout program that was designed to rescue the nation's banks.

The first step would be to shrink the Troubled Asset Relief Program by $30 billion by ending a lending facility for small businesses that was never used, The Wall Street Journal reported Wednesday.

The next step would be to end the Federal Reserve's Term Asset-Backed Lending Facility, which was used sporadically and less than expected, the Journal said.

The moves are being made in anticipation of the financial reform overhaul that directs the Treasury to reduce TARP to a $475 billion fund and to forgo any new spending.

GM back on the road to profitability

Tue, 05/18/2010 - 15:30 by Jamie Anderson

End of the tortuous loss making journey for the General Motors (GM). Once termed as one of the Detroit’s Big Three along with Ford and Chrysler; GM bailed out last year by the U.S. government, finally jumped out of the red after reeling under recessionary conditions for nearly three years.

Chrysler repays $1.9B loan

Tue, 05/18/2010 - 10:03 by Jamie Anderson

Chrysler Holding, parent company of Chrysler LLC, the besieged automaker that had opted for Chapter 11 protection last year, repaid $1.9 billion loan to the U.S. Treasury Department.

Morgan Stanley to handle sale of Treasury's stake in Citigroup

Tue, 03/30/2010 - 14:59 by Ishita Sood

The Treasury Department announced on Monday that investment banking firm Morgan Stanley will handle the sale of government’s stake in Citigroup Inc. A Treasury spokesperson said that the agreement would be made public later this week.

Wells Fargo CEO receives $18.7mn compensation for 2009

Thu, 03/04/2010 - 15:51 by Ishita Sood

Wells Fargo CEO John Stumpf received a compensation of $18.7 million for 2009, according to a filing with the Securities and Exchange Commission.

GMAC gets $3.8 billion in 3rd round of funding

Thu, 12/31/2009 - 13:02 by Jamie Anderson

New York, December 31 -- GMAC may not have been able to garner sufficient capital on its own, but the erstwhile part of General Motors, known as General Motors Acceptance Corporation for years, has found a knight in shining armor in the Treasury Department.

TARP to fund jobs promotion program

Mon, 12/07/2009 - 21:38 by Jamie Anderson

New York, December 7: Initiated under the regimen of President George W. Bush, the Troubled Asset Relief Program (TARP) is expected to cost close to $200 billion less than what was projected.

Bank of America set to repay TARP money

Thu, 12/03/2009 - 14:40 by Ishita Sood

Charlotte, December 3 -- Bank of America, the nation’s biggest lender, will repay $45 billion of the U.S. bailout funds, part in cash and part in securities that will later be converted into common stock.

Extending unpopular TARP considered

Thu, 11/19/2009 - 22:19 by Inderjit Singh

Washington -- Sources close to the government said the Obama administration is leaning toward an extension of the $700 billion bailout fund, in part to pay down U.S. debt.

For many, the massive Troubled Asset Relieve Program played out like a get-out-of-jail-free card given to Wall Street despite the role big banks played in the financial meltdown that led to a near-global recession. As such, some administration officials are pushing for $200 billion in TARP funding to pay off a portion of the nation's $12 trillion debt, The Washington Post reported Thursday.

By paying off some debt, officials hope the political fervor over an extension of the unpopular program might be softened, the Post said.

Others said TARP funds could be used to save or create jobs.

$5.1B in TARP funds at risk

Tue, 11/17/2009 - 21:31 by Inderjit Singh

Washington -- Financial regulators say about $5.1 billion in Troubled Asset Relief Program funds are in the hands of banks that have failed or may fail soon.

Regulators have listed 27 of 690 financial firms that received TARP funds as failed or in serious trouble, The Wall Street Journal reported Tuesday.
Business lender CIT Group is in bankruptcy, which will erase obligations on a $2.3 billion TARP loan made in January.

Regulators also seized the banking unit of Pacific Coast National Bancorp, a San Clemente, Calif., bank on November 13. That bank accepted $4.1 million in TARP assistance.

"There are going to be more losses," banking analyst Jeff Davis at FTN Equity Capital Markets Corp. told the Journal.

Report: TARP cost government in credibility

Wed, 10/21/2009 - 20:47 by Inderjit Singh

Washington -- The inspector general of the $700 billion financial firm bailout said the program helped banks, but with serious costs to U.S. government credibility.

"The American people's belief that the funds went into a black hole, or that there was a transfer of wealth from taxpayers to Wall Street, is one of the worst outcomes of this program, and that is the reputational damage to the government," said Neil Barofsky in a 256-page report, USA Today reported Wednesday.

TARP -- the Trouble Asset Relief Program -- was assembled in the fall of 2008 as a plan for the U.S. Treasury to buy frozen assets from banks to free up credit for consumers and businesses and reduce foreclosure rates.