TARP money

Bailouts Earn $35 Billion for U.S. Taxpayers

The federal governments bailout program has earned the taxpayer nearly $35 billion in the last two years, The Associated Press said. Income from the Troubled Asset Relief Program (TARP) rose by almost 17% through November compared with the estimate in October, the AP said.

TARP Costs Fall to $25 Billion, CBO Says

The much-criticized Troubled Asset Relief Program (TARP) will end up costing the federal government about $25 billion, far less than previously expected. A report from the Congressional Budget Office (CBO) said that the costs will largely stem to funds given to American International Group (AIG), the auto industry and grants intended to avoid foreclosures.

Bank of America May Pay Employee Bonuses in Stock

As Bank of America continues to cope with fallout from the housing and mortgage crisis, the financial institution may have to pay some year-end employee bonuses in the form of stock because of a possible cash shortfall related to its buy-back of stock from the federal government.

TARP Investment Earned Taxpayers 8.2% in Two Years

The TARP bailout of financial firms has yielded a return of 8.2% in two years. This return, $25.2 billion on an investment of $309 billion, beats that offered by U.S. Treasuries, high-yield savings accounts and certificates of deposit, Bloomberg News reported.

TARP Draws to a Close Next Week, With Lower Costs Than Thought

After countless angry political speeches and the threat of economic collapse, the government%u2019s $700 billion bailout of banks, insurance companies and auto companies draws to a close Sunday - and it will likely cost only a fraction of what was expected. It will be years before it is possible to produce exact figures related to the bailout, which encompassed everything from mortgage finance colossuses Fannie Mae and Freddie Mac to auto company General Motors.

Treasury Sells More Citi Shares

The U.S. Department of the Treasury announced Thursday that it has sold all of the trust preferred Citigroup shares it held for a net profit to the taxpayer of $2.246 billion. In addition, Treasury also announced it sold 1.5 billion shares of Citigroup common stock, according to a plan announced in July, lowering its stake in the bailed out bank from 18% to 12.4%.

AIG Finalizes Its Plan to Repay the U.S. for Bailout

After months of planning, AIG announced Thursday that it had entered into an agreement with the Treasury Department and the Federal Reserve Bank of New York about how it will repay in full its obligations to the U.S. government and regain its independence.

Fed Asks Court to Delay Release of Bank Bailout Documents

The Federal Reserve Board asked an appeal court to delay the court-ordered release of documents that would identify banks that might have failed without support from the U.S. government. The Fed asked the U.S. Court of Appeals in New York to delay the release while it consults with the Department of Justice about a possible appeal to the U.S. Supreme Court, Bloomberg News reported.

AIG Prepares for First Bond Offering Since Bailout

American International Group is laying the groundwork for its first debt offering in two years, an offering that could be a key test of whether investors think the insurance giant can stand on its own and ultimately repay U.S. taxpayers for its bailout.

America's Bailout Program Benefited Foreign Countries, Oversight Panel Finds

America's bailout program, which was intended to help U.S. banks, greatly helped foreign banks as well, a Congressional watchdog group has concluded. The American government flooded the financial markets with money, aiming to help as many banks as possible, while most foreign nations targeted funds to save individual institutions, often those with no major U.S. operations.

Pay Czar Feinberg to Ask for Stronger Clawback Provisions

Wall Street "pay czar" Kenneth Feinberg will ask several financial firms to strengthen so-called clawback provisions, but will not force them to recover bonuses paid at the height of the financial crisis, CNBC reported. Clawback provisions allow companies to reclaim compensation given to employees if, for instance, the employee is found to have caused significant losses for the firm.

Why Politics Makes It Hard to Fix the Banks

Banks are not the enemy. Although many imperfections exist in our financial system, turning banks into a target or a tool for recovery will end poorly. Over time, things will work out in the absence of counterproductive, even if well-intentioned, meddling.