Banks Pay Back TARP Funds by. . .Borrowing From Treasury

[The Straight Story]

Banks Pay Back TARP Funds by. . .Borrowing From Treasury

Most of the big banks have repaid the government funds they received under the Capital Purchase Program (CPP), the pillar of TARP under which Treasury bought preferred shares in the nation's banks. Enough so that, combined with dividends and sales of warrants, Treasury has declared that taxpayers have earned a profit on the CPP. Thus far, $245 billion has gone out, and $255 billion in repayments, interest and warrants has come back, yielding a profit to taxpayers of $10 billion. And there's several billion more where that came from.

Many of the small banks that took relatively small chunks of capital have been slower to exit. Last week, however, there was a mini stampede. The transactions are reported here. Eight banks paid back their funds on July 14. They were:

Eagle Bancorp of Bethesda, MD: $23.235 million
First California Financial, Westlake Village, CA: $25 million

(more)
http://finance.yahoo.com/blogs/daniel-gross/banks-pay-back-tarp-funds-borrowing-treasury-205658852.html?sec=topStories&pos=5&asset=&ccode=

[no_hypocrisy]

1. Talk about robbing Peter to pay Paul . . . .

[chill_wind]

2. The Bailout Scorecard (ProPublica)

http://projects.propublica.org/bailout/main/summary

Altogether, accounting for both bailouts, $573 billion has gone out the door—invested, loaned, or paid out—while $273 billion has been returned.

The Treasury has been earning a return on most of the money invested or loaned. So far, it has earned $63 billion. When those revenues are taken into account, $238 billion is the net still outstanding as of Jul. 20, 2011.

Bailout recipient list

http://projects.propublica.org/bailout/list/index

(text only)

http://projects.propublica.org/bailout/list/simple

[librechik]

3. man, and I thought i was nuts paying credit card bills with other credit cards

desperate times