Banks continue to exit the Trouble Asset Relief Program (TARP), repaying the U.S. Department of Treasury’s investments beyond expectations. The Treasury announced it has priced secondary public offerings of the preferred stock it holds in seven financial institutions this week. The aggregate net proceeds from the seven offerings are expected to be approximately $204 million.
TARP’s bank programs have already earned a significant profit for taxpayers. Including the expected proceeds from the transactions announced today, Treasury has recovered $264 billion from TARP’s bank programs through repayments, dividends, interest, and other income—a $19 billion positive return. Each additional dollar recovered from TARP’s bank programs is an additional dollar of profit for taxpayers.
Treasury has announce it expects to begin its first in a series of pooled auctions of CPP preferred stock later this year, and will continue with individual auctions as early as late July. Treasury has indicated it intends to use a combination of repayments, restructurings, and sales to recover the remaining investments.
Read Treasury’s press release.
Read ABA’s white paper: TARP Bank Programs Have Been Paid Back in Full.