Treasury Makes $245 Million in Added Profits from TARP

Posted on 14 June 2012 by Ken Zino
AutoInformed.com

Each additional dollar recovered from TARP is an additional dollar of profit for taxpayers.

The U.S. Department of the Treasury today announced that as the result of the pricing for secondary public offerings of the preferred stock in seven financial institutions it owns under the TARP banking bailout, federal taxpayers would make an additional $245 million from the controversial program, that arguably prevented the complete collapse of the U.S. and global economies during 2008 and 2009.

TARP’s bank programs have already earned a significant profit for taxpayers. Including the expected proceeds from today’s transaction, Treasury has now recovered $264 billion from TARP’s bank programs through repayments, dividends, interest, and other income – compared to the $245 billion initially invested.

Treasury’s stock auctions are part of a strategy revealed in May last month 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 buy cialis australia online banks.” Treasury said it would use a combination of repayments, restructurings, and sales to manage and recover those remaining investments. Treasury expects to announce additional CPP (Capital Purchase Program part of the Troubled Assets Relief Program) preferred stock auctions in the coming weeks.

Each additional dollar recovered from TARP’s bank programs is an additional dollar of profit for taxpayers.

“We’re pleased with the results of today’s auction, which  enabled these community banks to replace temporary government support with new private capital, and keeps us on track to earn a positive return for taxpayers from TARP’s bank programs in excess of $20 billion,” said Assistant Secretary for Financial Stability Timothy G. Massad.

The banks involved in today’s announcement are part of a Merrill Lynch and Sandler O’Neill conducted auction:

  • Taylor Capital Group, Inc., Rosemont, IL
  • Ameris Bancorp, Moultrie, GA
  • First Defiance Financial Corp., Defiance, OH
  • Farmers Capital Bank Corp., Frankfort, KY
  • LNB Bancorp Inc., Lorain, OH
  • First Capital Bancorp Inc., Glen Allen, VA
  • United Bancorp Inc., Ann Arbor, MI
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About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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One Response to Treasury Makes $245 Million in Added Profits from TARP

  1. Pingback: CBO – Taxpayer Cost is $31B for Troubled Asset Relief Program | AutoInformed

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