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Shared Servicing & Outsourcing
Feb. 23-24
San Francisco
ABA Mutual Community Bank Conference
March 1-5
Gaylord Palms Resort
ABA Mutual Community Bank Conference
March 22 & 23
Marriott Marquis
Washington, D.C.
Card Forum & Expo
April 8-10
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Happy Fifth Birthday TARP

Tarp Banks Face Day of Reckoning as Dividend Spike Nears
American Banker
Some banks, including Broadway Financial in Los Angeles, have scrambled to refinance Tarp, allowing them to avoid higher dividend payments. Some banks, like 1st Financial Services in Hendersonville, N.C., found a buyer that will become responsible for the funds. Still others plan to just hang tight.

Treasury’s Use of Auctions to Exit the Capital Purchase Program
Government Accountability Office
Through these auctions, repurchases, and other mechanisms, 556 institutions had exited CPP as of May 31, 2013, accounting for almost $223 billion in repayments and income and exceeding the original investment amount by about $18 billion.

Five Years After TARP, Misgivings on Bonuses
New York Times
While TARP was terribly unpopular, most economists now credit it and the extraordinary measures taken by the Federal Reserve with helping to prevent another depression.

TARP Regulator Says Controversial Program ‘Cost Practically Nothing’
Talk Business Arkansas
Tim Massad, assistant secretary for financial stability with the U.S. Department of Treasury: “We have already recovered more money than we disbursed for all the TARP investments if we include all of Treasury’s profits on its AIG investment. So right now we’re in the black.”

The Financial Crisis Five Years Later: Response, Reform, and Progress In Charts
U.S. Department of the Treasury
Today, banks have paid back 99 percent of the funds Treasury invested, and Treasury has already realized a gain from dividends, warrants, and other income. And whereas banks participating in TARP once held more than 98 percent of all U.S. banking assets, now that number is less than 1 percent. (pg. 9)

All Things TARP
U.S. Department of the Treasury

Capital Purchase Program Information
U.S. Department of the Treasury
Treasury is in the process of winding down its remaining bank investments in a way that protects taxpayer interests and preserves the strength of our nation's banks.

September 2013 Report to Congress
U.S. Department of the Treasury

SigTARP Quarterly Report to Congress – July 24, 2013
Office of the Special Inspector General for the Troubled Asset Relief Program
A total of $8.9 billion in CPP funds was still owed to taxpayers as of June 30, according to the TARP Special Inspector General’s quarterly report to Congress.

Regional TARP News

All Seven Florida Banks in TARP Missed Bailout Payments
South Florida Business Journal
The seven TARP banks in Florida owed a combined $16.8 million in missed dividends as of June 30.

Which Banks Are Left in TARP and Why?
Philadelphia Business Journal
Banks, which comprise only 40 percent of the TARP money distributed, produced a net profit to date of $25.7 billion on the $236 billion disbursed. Fannie Mae produced a $21 billion net loss on Treasury’s investment while Freddie Mac lost the government $34.7 billion. General Motors has produced a net loss of $19 billion and Chrysler a net loss of $1.3 billion for the government. And auto lender GMAC produced a net loss of $10.2 billion.

Many Community Banks Still Struggle to Repay TARP Bailout Funds
Los Angeles Times
About a dozen of those still owing TARP are in California, and banks will soon face a big increase in the annual dividend they must pay the government on its investment.