TARP PayBack

U.S. Taxpayers Get $1.54 Billion from Bank of America Warrant Sale

2010-03-05T06:53:00.001-08:00

The U.S. Treasury announced yesterday that it expects to receive net proceeds of $1.54 billion from selling Bank of America warrants it received as a part of its TARP investment. As banks pay back the TARP money, the Treasury is also disposing the warrants it received in connection with the TARP investment. Sometimes it bank buys back the warrants directly from the Treasury, but in this case the Treasury auctioned off the warrants to maximize the sales price. It earned more from the Bank of America warrants than selling the JPMorgan ($936 million) and the Goldman Sachs warrants ($1.1 billion).

Treasury to Auction Warrants

2009-11-21T06:26:00.000-08:00

The U.S. Treasury announced Thursday that they would auction off the warrants they own in JP Morgan, Capital One, and TCF Financial. The government received these warrants in connection with their TARP investments. These banks previous negotiated with the Treasury department to buy back these securities but couldn't agree on a price. They will now be auctioned off in a public modified Dutch auction.

Times: U.S. sees profit from TARP

2009-08-31T06:26:00.000-07:00

The New York Times reported yesterday that the U.S. government has made about $4 billion in profit from the eight biggest banks who have paid back their TARP investments.

This is by no means a comprehensive accounting of TARP funds. There is a still a significant amount of money that hasn't been paid back yet.

They printed a nice table showing the profit bank by bank: http://www.nytimes.com/imagepages/2009/08/31/business/31taxpayer_graphic.ready.html

CVB Financial to pay back TARP funds

2009-08-12T09:47:00.000-07:00

CVB Financial Corp. (Ticker:CVBF) announced Monday that it has received final regulatory approval to repurchase all the preferred stock sold to the U.S. Department of the Treasury in December of 2008. CVB will pay $130 million to the Treasury to repurchase the preferred stock, plus accrued and unpaid dividends and intends to complete the repurchase as soon as possible. CVB recently had a stock offerring which raised $132 million.

Morgan Stanley to buyback TARP warrants

2009-08-06T11:38:00.000-07:00

Morgan Stanley (Ticker: MS) announced this morning that they have agreed to buy back the warrants issued as a part of the TARP. They will pay the government $950 million to repurchase the warrants.

Morgan Stanley repays TARP funds

2009-06-17T09:43:00.000-07:00

Morgan Stanley (Ticker: MS) announced this morning that they have paid back the $10 billion they received as a part of the TARP.

JPMorgan Chase Repays TARP funds

2009-06-17T09:39:00.000-07:00

JPMorgan Chase (Ticker: JPM) announced this morning that they have paid back in full the $25 billion it accepted as a part of the TARP. In addition they reported that they have paid a total of $795,138,889 in dividends on the preferred stock. The next step is to repurchase the warrants issued to the government in connection with the preferred stock investment.

Fed releases guidelines to repay TARP funds

2009-06-01T20:02:00.001-07:00

The Federal Reserve today released a statement with guidelines for the largest 19 banks wanting to redeem TARP funds. In addition to being on generally sound financial footing, these banks must demonstrate the ability to access the long-term debt markets without reliance on the FDIC's Temporary Liquidity Guarantee Program and must successfully demonstate the ability to raise public equity.

The Fed said the initial set of redemption approvals are expected to be announced next week.

In response, J.P. Morgan Chase and American Express immediately announced plans today to raise fresh capital through a public equity offering.

Northern Trust moves closer to paying back TARP funds

2009-04-27T19:15:00.000-07:00

Northern Trust (Ticker:NTRS) announced today that is raising capital to pay back the Preferred Stock issued to the U.S. Treasury as a part of the TARP Capital Purchase Program. Northern is trying to raise $750 million of common equity and $500 million in new debt.

Northern's CEO Frederick Waddell said "These steps will position Northern Trust to redeem Capital Purchase Program funds when permitted by regulators, while also strengthening our ability to pursue compelling growth opportunities."

Northern received $1.576 billion last Nov. 14th in the second wave of TARP Preferred Stock investments.

Rep. Frank wants U.S. to accept TARP repayments

2009-04-25T06:57:00.000-07:00

U.S. Rep. Barney Franks says that the government should welcome banks who want to pay back TARP funds. He told Reuters that "To the extent that we have people pay it back, we should welcome that. It goes into the Treasury."

He also gave an interview to the Financial Times saying that the stronger banks should be allowed to pay back TARP funds. He knows that "some people are taller than other people. Of course there are different levels of strength between the banks.” He dismissed opposing arguments that by allowing the stronger banks to return TARP funds they will have a competitive advantage and therefore banks shouldn't be allowed to return funds until the banking system is much stronger.

Four more banks complete TARP share repurchase

2009-04-25T06:35:00.000-07:00

Four more banks have repaid TARP funds this past week. To date, a total of eleven banks have repaid TARP funds totaling $1.03654 billion plus accrued dividends.

A full list of TARP recipients along with who has paid back TARP funds is available on a new government website called FinancialStablity.gov. The latest TARP Transactions Report is available under the Reports and Filings section.

TARP Paybacks this week...

TCF Financial (Ticker: TCB) fully repaid TARP funds on April 22nd. They bought back the preferred shares issued to the Treasury Department for $361.172 million plus accrued dividends of $3.4 million. They originally received the funds on Nov. 14th.

FirstMerit (Ticker: FMER) fully repaid TARP funds on April 22nd. They bought back the preferred shares issued to the Treasury Department for $125 million plus accrued dividends of approximately $1.16 million. They originally received the funds on Jan. 9th.

Independent Bank (Ticker: INDB) fully repaid TARP funds on April 22nd. They bought back the preferred shares issued to the Treasury Department for $78.158 million plus accrued dividends of approximately $727,000. They originally received the funds on Jan. 9th.

First ULB fully repaid TARP funds on April 22nd. They bought back the preferred shares issued to the Treasury Department for $4.9 million plus accrued dividends. They originally received the funds on Jan. 23rd.

TCF receives approval to return TARP funds

2009-04-21T19:21:00.000-07:00

TCF Financial Corp. (Ticker:TCB) announced yesterday that it has received approval from the U.S. Treasury to repurchase all of its preferred shares issued in connection with the TARP at a total redemption price of $361.172 million plus a final pro rata accrued dividend.

When this transaction closes, TCF will become the biggest bank yet to redeem TARP shares.

FirstMerit Files Notice to Return TARP Funds

2009-04-21T19:13:00.000-07:00

FirstMerit Corp. (Ticker: FMER) announced on April 16th that it has filed notice with the U.S. Dept. of the Treasury to redeem all the preferred shares issued as a part of the TARP at a total redemption price of $125 million plus accrued dividends. FirstMerit originally received the investment on Jan. 9th. FirstMerit anticipates closing the transaction on or about April 22nd.

Shore Bancshares Completes TARP Share Repurchase

2009-04-17T21:18:00.001-07:00

Shore Bancshares (Ticker: SHBI) announced that they fully repaid TARP funds on April 15th. They bought back the preferred shares issued to the Treasury Department for $25 million plus accrued dividends of $208,333.33. They originally received the funds on Jan. 9th.

To date, a total of seven banks have repaid TARP funds totaling $467.31 million plus accrued dividends.

A full list of TARP recipients along with who has paid back TARP funds is available on a new government website called FinancialStablity.gov. The latest TARP Transactions Report is available under the Reports and Filings section.

Goldman Sachs raises $5 Billion

2009-04-14T07:05:00.001-07:00

Goldman Sachs (Ticker: GS) announced this morning that it has priced the stock offering announced last night of 40,650,407 shares at $123.00 per share. In addition, Goldman has an option to purchase up to an additional 6,097,561 shares of common stock.

If the option gets fully exercised that would give them $5.75 billion that can be used towards redeeming that TARP shares issued to the Treasury Dept.

First Niagara Announces $300 Million Stock Offering

2009-04-13T16:06:00.000-07:00

First Niagara Financial Group, Inc. (Ticker: FNFG) announced today that it plans to sell approximately $300 million of common stock in a public offering.

In a statement, First Niagara said they want to use part of the proceeds "to facilitate (in consultation with the Office of Thrift Supervision) repayment of the $184 million in preferred stock issued to the U.S. Treasury Department pursuant to the Capital Purchase Program and the related warrant for common stock"

Goldman Sachs also announced a stock offering today to raise funds to pay back TARP funds.

Centra Financial Holdings completes TARP share repurchase

2009-04-13T15:50:00.000-07:00

Centra Financial Holdings announced in an 8-K filing that they returned TARP funds on March 31st. They bought back the preferred shares issued to the Treasury Department for $15 million plus accrued dividends of $95,833.33. They originally received the funds on Jan. 16th.

To date, a total of six banks have repaid TARP funds totaling $442.31 million plus accrued dividends.

A full list of TARP recipients along with who has paid back TARP funds is available on a new government website called FinancialStablity.gov. The latest TARP Transactions Report is available under the Reports and Filings section.

Goldman Announces $5 Billion Stock Offering

2009-04-13T15:14:00.001-07:00

Goldman Sachs (Ticker: GS) announced today that it has commenced a $5 billion stock offering. Goldman is going to underwrite the offering themselves.

They want to use the money raised from the offering to pay back the $10 billion in TARP funds it received in Oct. 2008.

From the press release:

"After the completion of the stress assessment, if permitted by our supervisors and if supported by the results of the stress assessment, Goldman Sachs would like to use the capital raised plus additional resources to redeem all of the TARP capital. "

Goldman Sachs also announced 1st Quarter 2009 earnings.

Somerset Hills Bank files notice to return TARP funds

2009-04-09T13:36:00.000-07:00

Somerset Hills Bancorp (Ticker: SOMH) based in Bernardsville, NJ, said on April 2 it filed a notice with the Treasury Dept. and the Federal Reserve Bank of New York to pay back $7.414 million it received in TARP funds. The bank also anticipates that it will offer to buyback the warrant issued to the Treasury in connection to the TARP preferred shares.

Blankfein speaks to NPR about returning TARP funds

2009-04-08T16:19:00.000-07:00

Goldman Sachs CEO Lloyd Blankfein was interviewed today on NPR's All Things Considered. He spoke about when Goldman will return TARP funds and about executive pay in the financial sector.

Regarding returning TARP funds,

"I will tell you precisely when Goldman Sachs gives its money back: As soon as we are able to, while still being able to perform our functions in the capital markets systems subject to the approval of our regulators."
Blankfein says that because of legal restrictions, he can't discuss the approval process. But generically speaking, he says the TARP money was never meant to be "permanent capital."
"It wasn't the option of the bank to hold on to it, but rather the obligation of the bank that as soon as it was able to do it, to return the money while still performing that important purpose of intermediating and lending," Blankfein says. "Then the obligation was to return it immediately."

Read the NPR story here.

Hear the entire interview here.

Sun Bancorp completes TARP share repurchase

2009-04-08T08:47:00.000-07:00

Sun Bancorp (Ticker: SNBC) today became the fifth bank to return TARP funds. They announced that they have bought back the preferred shares issued to the Treasury Department for $89.31 million plus accrued dividends of $657,000. They originally received the funds on Jan. 9th.

To date, a total of five banks have repaid TARP funds totaling $427.31 million plus accrued dividends. Three more have publicly announced that they have filed notice with the Treasury Department to redeem shares.

Goldman considering share sale to pay back TARP funds

2009-04-06T06:55:00.000-07:00

The Daily Telegraph reported on Saturday that Goldman Sachs is considering a multi-billion dollar share sale to fund the pay back of TARP shares. The newpaper says that Goldman is expected to make an announcement that it will submit a formal application to the Treasury department on April 14th when it reports first quarter results.

Goldman Considers Share Sale

Bank of America to Pay $713 Million in TARP Preferred Dividends

2009-04-03T11:37:00.000-07:00

The board of directors of Bank of America (Ticker: BAC) today authorized approximately $713 million in dividend payments to the U.S. government under the Troubled Asset Relief Program (TARP). The payment will be made on May 15, 2009.

Approximately $188 million relates to the government's $15 billion investment in Bank of America made under the Capital Purchase Program of TARP. Approximately $125 million relates to the government's $10 billion investment in Merrill Lynch made under the Capital Purchase Program of TARP. Finally, approximately $400 million relates to the government's $20 billion investment in Bank of America on January 16, 2009 under TARP.

Read the press release here.

Sun Bancorp to return TARP funds on April 8th

2009-04-01T20:41:00.000-07:00

Sun Bancorp announced today that they have received approval to repurchase preferred shares issued to the Treasury department in connection with the TARP. The company is scheduled to complete the repurchase of $89.31 million in shares on April 8th.

Why banks are returning TARP funds

2009-04-01T20:38:00.000-07:00

The Associated Press has a nice article with a Q&A about banks returning TARP money.

Read Meltdown 101: Why some banks returned rescue money.