The U.S. Department of the Treasury announced that today six financial institutions have repurchased Troubled Asset Relief Program (TARP) Capital Purchase Program (CPP) investments, delivering a total of $475 million in proceeds for taxpayers.
With today’s transactions, the programs within TARP that provide direct financial support to banks are continuing to near profitability. Through repayments, dividends, interest and other income, taxpayers have now recovered more than 99 percent (approximately $244 billion) of the approximately $245 billion in total funds disbursed for TARP investments in banks. Treasury currently estimates that bank programs within TARP will ultimately provide a lifetime profit of nearly $20 billion to taxpayers.
Treasury currently 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 expected to be recovered.
In the President’s FY2012 Budget, the Administration estimated that the lifetime cost of the overall TARP program will be approximately $48 billion. When also including AIG common stock held for the benefit of Treasury outside of TARP – that projected cost drops to $28 billion.