As featured in The Wall Street Journal, Money Magazine, and more!
     

Initial TARP Recipients are 57% Repaid

This article was written by in Economy. 10 comments.


With the news that Bank of America hurried up a sale of securities in order to pay back their TARP loan, the story of the many billions loaned to the “big banks” has reached an interesting turning point: they’re now more than half paid back, 57% to be precise. Here’s the breakdown of the $165 billion loaned to the country’s biggest banks.

Bank $B Loaned $B Repaid
Bank of NY Mellon Corp 3.0 3.0
Goldman Sachs 10.0 10.0
JP Morgan Chase 25.0 25.0
Morgan Stanley 10.0 10.0
State Street Corp 2.0 2.0
Bank of America 45.0 45.0
Citigroup 45.0 0.0
Wells Fargo 25.0 0.0

This is not to say that the entire TARP program has been more than half repaid. For some reason, the first Reuters story I found listed only the “initial recipients”. If memory serves, these are the companies that needed immediate help in order to stave off an immediate collapse of the entire economy. That’s the story I heard, anyway. I certainly wasn’t there when Henry Paulson got down on his knees and begged Nancy Pelosi not to block the TARP program.

But a bit more research found a well-reputed (according to Google’s algorithms, anyway) site with a breakdown of all recipients, amounts repaid and even revenue generated through the program.

If I add up the amount repaid ($72,316,490,000), add in Bank of America ($45,000,000,000) and the revenue generated ($14,687,071,318, which should logically go toward paying down the debt, one hopes), and subtract that subtotal ($132,003,561,318) from the original amount actually loaned out ($491,950,683,115), I calculate that the TARP loans are still 73.17% unpaid.

This means that at the next “Tea Party”, they should spend roughly 27% of the time celebrating instead of protesting. But that might depend on whether the sponsoring organization is linked to the GOP, a PAC, a corporation, or who-knows-what-else.

But enough of my snark. Nobody is in favor of taxpayer dollars being loaned to private corporations, except of course the corporations that borrowed them, and because I’m an optimist, I’m glad to see the train keep rolling forward instead of backward. Hopefully this latest Bank of America news will prod even more recipients to make plans for repayment.

Updated June 20, 2014 and originally published December 4, 2009. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

Email Email Print Print
avatar
Points: ♦1,358
Rank: Quarter
About the author

Smithee formerly lived primarily on credit cards and the good will of his friends. He is a newbie to personal finance but quickly learning from his past mistakes. You can follow him on Twitter, where his user name is @SmitheeConsumer. View all articles by .

{ 5 comments… read them below or add one }

avatar RainyDaySaver

I’ll be my cynical self and wager that most of these TARP repayments have been made in order to get out from under the governement’s thumb and rules. That way, they’re free to overspend on CEO salaries and bonuses, and return to their shifty practices.

Reply to this comment

avatar John DeFlumeri Jr

I don’t know how the banks can find the money to pay back so muck TARP money. Why did they need it at all, were they just “temporarily overdrawn” or something?

Reply to this comment

avatar Luke Landes ♦127,475 (Platinum)

In some cases, banks needed to shore up their balance sheets so they could get through the worst of the economy without completely falling apart, and in other cases, banks took the money sue to “peer pressure;” they really weren’t in a position of failure but a larger group of recipients spread the focus around.

Reply to this comment

avatar Jim

“Nobody is in favor of taxpayer dollars being loaned to private corporations”

I wouldn’t go that far. In general I don’t see any thing wrong with the government lending people money if its for the right reasons and good terms. Government loans can do a lot of good. The government backs or funds loans for farms, college, small businesses, mortgages, etc.

Reply to this comment

avatar Financial Samurai

Smithee – Don’t you think it’s just peachy that BOA got a nice $45billion bridge loan for the year, and has raised $19 billion from the public who bailed them out in the first place so they can pay themselves HUGE BONUSES this year just in time? :)

To be able to raise $19 billion from the public means that the public is in full support of Wall St.

God Bless America!

Best,
Sam-urai

Reply to this comment

Leave a Comment

Connect with Facebook

Note: Use your name or a unique handle, not the name of a website or business. No deep links or business URLs are allowed. Spam, including promotional linking to a company website, will be deleted. By submitting your comment you are agreeing to these terms and conditions.

Notify me of followup comments via e-mail. You can also subscribe without commenting.

Previous post:

Next post: