• Treasury Releases Eighteenth Section 105 TARP Progress Report
  • May 20, 2010 | Author: Darren M. Cooper
  • Law Firm: Alston & Bird LLP - Washington Office
  • Today, Treasury released its latest monthly progress report to Congress on the Troubled Asset Relief Program (TARP). The report is required under Section 105(a) of the Emergency Economic Stabilization Act of 2008 (EESA) and is the eighteenth report outlining the investment transactions and program implementation under TARP.

    Key developments during April 2010 include:

    • Cumulative TARP repayments have reached approximately $187 billion, representing repayment of "nearly 49% of all TARP disbursements."
    • Under the Capital Purchase Program (CPP), Treasury conducted a public auction of warrants issued by PNC Financial Services Group, Inc., resulting in gross proceeds of $324 million, and began selling up to 1.5 billion shares of Citigroup common stock.  Of the approximately $205 billion invested under the CPP, approximately $137 billion has been repaid and Treasury has received approximately $15 billion in income from dividends, interest, fees and the sale and/or exercise of warrants.
    • General Motors repaid the remaining amounts owed under its $4.7 billion loan under the Automotive Industry Financing Program.  The remaining Treasury stake in General Motors consists of $2.1 billion in preferred stock and 60.8% of the common equity, of which Treasury believes "the most likely exit strategy for the equity investments is a gradual sale beginning with a public offering of New GM."  In addition, the Automotive Supplier Support Program (ASSP) was closed and all loans made under the ASSP were repaid in full netting approximately $101 million in income to Treasury.
    • According to Home Affordable Modification Program (HAMP) data released by Treasury, approximately 230,000 homeowners have received permanent modifications and 108,000 additional permanent modifications have been approved by servicers and are awaiting borrower acceptance.  As of April 30, 2010, Treasury has released approximately $130 million for payments under HAMP.
       
    • Special Master for TARP Executive Compensation, Kenneth R. Fienberg, issued rulings on 2010 compensation pay for the 26th through 100th highest-paid employees at the five remaining companies (AIG, GM, GMAC, Chrysler Group LLC and Chrysler Financial)  that received exceptional financial assistance under TARP.