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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: steve harris who wrote (117940)	8/4/2012 11:02:40 AM
From: Sr K	Read Replies (1) \| Respond to of 149317

treasury.gov treasury.gov 3/30/2011 TARP Bank Programs Turn Profit After Three Financial Institutions Repay $7.4 Billion WASHINGTON – The U.S. Department of the Treasury announced that the Troubled Asset Relief Program’s (TARP) investment in banks has now turned a profit after three financial institutions repaid a total of $7.4 billion in TARP funds today to taxpayers. “While our overriding objective with TARP was to break the back of the financial crisis and save American jobs, the fact that our investment in banks has also delivered a significant profit for taxpayers is a welcome development,” said Treasury Secretary Tim Geithner. “We still have more work to do repairing the damage caused by the crisis and strengthening the recovery, but today is an important milestone in our efforts to recover taxpayer dollars as we continue winding down TARP.” With today’s proceeds, taxpayers have now recovered $251 billion from TARP’s bank programs through repayments, dividends, interest, and other income. That exceeds the original investment Treasury made through those programs ($245 billion) by nearly $6 billion. Treasury currently estimates that bank programs within TARP will ultimately provide a lifetime profit of approximately $20 billion to taxpayers. Based on current market conditions, Treasury expects that TARP investment programs taken as a whole – including financial support for banks, AIG, and the domestic auto industry; as well as targeted initiatives to restart the credit markets – will result in little or no cost to taxpayers. The lifetime cost of TARP is likely to be limited to funds disbursed for Treasury’s foreclosure prevention programs, which were not intended to be recovered. and 7/27/2012 treasury.gov TARP’s bank programs have already earned a significant profit for taxpayers. Including the expected proceeds from the transactions announced today, Treasury has now recovered $265 billion from TARP’s bank programs through repayments, dividends, interest, and other income – compared to the $245 billion initially invested. Each additional dollar recovered from TARP’s bank programs is an additional dollar of profit for taxpayers. These auctions are part of the strategy that Treasury outlined in May for winding down its remaining TARP bank investments in a way that protects taxpayer interests, promotes financial stability, and preserves the strength of our nation’s community banks. Treasury indicated that it intends to use a combination of repayments, restructurings, and sales to manage and recover those remaining investments. As described in the announcement, sales would include auctions of individual investments, as well as potentially combining individual investments together into auction pools. Beginning in the fall of 2012, Treasury expects to conduct the first in a series of pooled auctions of CPP Securities. “TARP's bank investment programs were critical to stabilizing an economy in freefall and have already realized a nearly $20 billion positive return for taxpayers,” said Assistant Secretary for Financial Stability Tim Massad. “These auctions are an important part of our efforts to wind down the program in a way that helps support our nation's community banks and recovers additional taxpayer dollars.”