Banking & Finance

TARP Payback Scorecard

New $100 Bill
Source: Wikimedia Commons
Following the financial crisis of 2008, the U.S. Treasury was authorized to commit up to $700 billion to a Troubled Asset Relief Program — TARP — in an effort to stop the bleeding in the U.S. economy. All told, U.S. taxpayers committed $456.56 billion to the various parts of the program, and as of yesterday, have collected $414.27 billion in repayments.

Yesterday’s announcement that Fannie Mae would repay $59.4 billion in bailout funds spiked our interest in how the TARP payback is going. Here is what we have found.

The Capital Purchase Program was the largest of the TARP programs, paying out $250.46 billion to 707 financial institutions. The total amount repaid so far comes to $270.81 billion. Bank of America Corp. (NYSE: BAC) took TARP funds of $45 billion and fully repaid the funds in early 2010. Citigroup Inc. (NYSE: C) and Wells Fargo & Co. (NYSE: WFC) paid back TARP loans of $20 billion and $25 billion, respectively, in early 2010 as well. J.P. Morgan Chase & Co. (NYSE: JPM) repaid $25 billion in the summer of 2009, and Morgan Stanley (NYSE: MS) and Goldman Sachs Group Inc. (NYSE: GS) repaid $10 billion each at the same time.

In addition to these repayments, the Treasury received dividend payments of nearly $12 billion on from the Capital Purchase Program, some $9.4 billion from banks with assets greater than $10 billion.

Smaller banks received $14.57 billion in TARP funds and have repaid $12.13 billion so far, including $1.63 billion in dividends.

American International Group Inc. (NYSE: AIG) received $67.84 billion in TARP funds and has repaid $55.31 billion to date, include $640 million dividends.

The U.S. auto industry received a total of $79.69 billion. Chrysler Group received $12.37 billion and has repaid $11.13 billion to date, including $1.13 billion in interest. General Motors Co. (NYSE: GM) received $51.03 billion and has so far repaid $31.1 billion, including $770 million in interest. Ally Financial, formerly GMAC, received $16.29 billion and has repaid $5.94 billion, including $3.27 billion in dividends. As a group, the automakers and Ally have repaid $48.17 billion of the original bailout funds.

The out-of-pocket cost to taxpayers as of yesterday totaled $42.29 billion, and collections are continuing. That’s not exactly chump change, but in late 2008 no one would have dared predict that TARP would end up costing that little.

See the U.S. Treasury’s daily report.

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