• Treasury Releases Seventeenth Section 105(a) TARP Progress Report
  • April 22, 2010 | Author: Darren M. Cooper
  • Law Firm: Alston & Bird LLP - Washington Office
  • Yesterday, 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 seventeenth report outlining the investment transactions and program implementation under TARP.

    Key developments during March 2010 include:

    • Cumulative TARP repayments have reached $181 billion.  In March, Treasury received significant repayments from Hartford Financial Services ($3.4 billion) and General Motors ($1 billion).
    • Treasury conducted a public auction of warrants issued by Bank of America as part of the Capital Purchase Program (CPP) and Targeted Investment Program yielding total gross proceeds of approximately $1.57 billion, and public auctions of warrants issued under te CPP by Signature Bank, Texas Capital Bancshares, and Washington Federal, Inc. for additional total gross proceeds of approximately $34 million.  Of the approximately $205 billion invested under the CPP, approximately $136 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.
    • According to Home Affordable Modification Program (HAMP) data released by Treasury, approximately 170,000 homeowners have received permanent modifications and more than 1.3 million homeowners have received offers for trial modifications
    • Three additional servicers, Wells Fargo, JP Morgan and Citigroup entered the HAMP Second Lien Modification Program.
    • Treasury announced a second Housing Finance Agency Innovation Fund for the Hardest-Hit Housing Program, and several enhancements to the HAMP program.
    • Special Master for TARP Executive Compensation, Kenneth R. Fienberg, issued rulings for the Top 25 executives at the five remaining firms (AIG, Chrysler, Chrysler Financial, GM and GMAC) receiving exceptional financial assistance under TARP.

    Of the total $700 billion in TARP funds authorized under EESA, Treasury indicated it does not expect to use more than $550 billion.  As of March 31, 2010, approximately $545 billion of TARP funds had been planned for various TARP programs, and of that amount, approximately $489 billion has been committed to specific institutions, approximately $380 billion has been disbursed, and approximately $181 billion has been repaid.