U.S. Treasury Collects Another $67 Million from TARP Bailouts

Banking, finance, and taxes

Published: November 2, 2012 10:49 am

The U.S. Treasury Department today said that it will collect gross proceeds of $67 million from the sale of shares in 11 banks that received TARP bailout funds following the 2008 financial crisis. Treasury said that it has now recovered $267 billion from its TARP bank lending, about $22 billion more than the $245 billion originally used to bail out the banks.

Assistant Treasury Secretary Timothy Massad said:

[W]e’re moving to wind down our remaining investments in a way that helps strengthen our nation’s community banks and replaces temporary government support with private capital.

The modified Dutch auction included preferred shares and subordinated debt.

The better-than-expected return on TARP bank lending is almost entirely due to the increased market value of American International Group Inc. (NYSE: AIG) since the insurer’s near-failure.

Including bailouts in the auto, housing and insurance industries, TARP is still forecast to cost taxpayers about $24 billion. Of the $700 billion authorized for the program, only $414 billion was ever disbursed.

The Treasury press release announcing the auction results is available here.

Paul Ausick

Are You Ahead, or Behind on Retirement?

If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention. Many people have worked their whole lives preparing to retire without ever knowing the answer to the most important question: am I ahead, or behind on my goals?

Don’t make the same mistake. It’s an easy question to answer. A quick conversation with a financial advisor can help you unpack your savings, spending, and goals for your money. With Zoe Financial’s free matching tool, you can connect with trusted financial advisors in minutes.

Why wait? Click here to get started today!