TARP WORKED, AND IT MADE A PROFIT!

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Read these two quotes I pulled from the below article “The $30 billion overage has resulted in a significant profit for taxpayers.” and “Every dollar raised from this point forward, including the $35.6 million raised by the recent auction, is profit for taxpayers.” That’s indeed good news. And, actually saving the devastated big banks and the world’s economy from total collapse while making a profit for the U.S is very good news.

However, isn’t it too bad for America that these same big banks didn’t use the TARP money as originally intended – to clear their “toxic assets” off their books. That was the pitch, then Treasury Secretary, Paulson made to the congressional committee but somehow it was never required by the banks once they got their hands on the money. Too bad for America the big banks instead socked that dough into the stock market making millions for themselves. Too bad for America they didn’t have more empathy (patriotism?) for the devastated homeowners whom they themselves devastated with their reckless, ruthless behaviors.

Too many of their fellow Americans suffered and are still suffering. I guess those banks knew they were too big to fail and, as it turns out, too big to jail.
Yes, TARP worked and made a profit; but the creeps made a fortune.

Paul

Treasury Nets $35 Million In Securities Auction as Part of TARP Wind Down

As part of a continuing effort to wind down the government’s Troubled Asset Relief Program (TARP) to bail out banks devastated by the financial crisis of six years ago, the U.S. Department of Treasury recently auctioned off preferred stocks for three institutions, gaining $35.6 million in aggregate gross proceeds.

The auction was part of Treasury’s effort to recover remaining investments in the Capital Purchase Program (CPP). Treasury had outstanding investments in 39 CPP institutions heading into last week’s auction.

As part of the auction, Treasury sold shares for the following institutions:

  • First United Corporation of Oakland, Maryland – 30,000 shares of fixed rate cumulative perpetual preferred stock (series A) at $1,002.01 per share for, for a total of slightly more than $30 million in aggregate gross proceeds;
  • Lone Star Bank of Houston, Texas – 3,072 shares of fixed rate non-cumulative perpetual preferred stock (series A) at $621.25 per share and 154 shares of fixed rate non-cumulative perpetual preferred stock (series B) at $600.01 per share for total aggregate gross proceeds of slightly more than $2 million; and
  • Porter Bancorp of Louisville, Kentucky – 35,000 shares of fixed rate cumulative perpetual preferred stock (series A) at $100.00 per share for aggregate gross proceeds of $3.5 million.

Shares of Liberty Shares, Inc., located in Hinesville, Georgia, were up for sale, but they did not sell because none of the bids were above the minimum price set for the securities according to the auction procedures, according to Treasury.

The aggregate gross proceeds for the three institutions total about $35.6 million. Closings for the auctions are expected to occur on or about December 4.

Signed into law by the Bush administration, TARP was created in 2008 at the height of the nation’s financial crisis in order to implement programs to stabilize the financial system during the financial crisis of 2008. Treasury initially invested $245 billion in TARP’s bank programs, and to date Treasury has recovered $275 billion through repayments, dividends, interest, and other income. The $30 billion overage has resulted in a significant profit for taxpayers. The Small Business Lending Fund (SLBF) has resulted in the repayment of about $2.2 billion in TARP funds by CPP institutions that refinanced their repayments under the SLBF. Congress created the SBLF as a way for CPP institutions to repay TARP funds.

Every dollar raised from this point forward, including the $35.6 million raised by the recent auction, is profit for taxpayers.

Treasury originally outlined a strategy for winding down its remaining TARP bank investments in May 2012 “in a way that protects taxpayer interests and preserves the strength of our nation’s community banks.” The strategy to recover Treasury’s investments includes using a combination of repayments, restructurings, and sales.

DSNews
Brian Honea