FREEDOM PROJECT: Three Banks Return $22 million in TARP Funds... JUST A BEGINING...

Three Banks Return $22 million in TARP Funds

Posted on June 11, 2012

by Daniel Gross
Contrary Indicator
June 11, 2012

Nearly four years after the Lehman Brothers debacle, the government rescue efforts and bailouts continue to wind down. The central component of the TARP was the Capital Purchase Program (CPP), under which Treasury purchased preferred shares in hundreds of banks and received warrants in return. Banks started to return the capital in June 2009, with the largest institutions repaying first. In all, CPP recipients took public funds. Banks have returned $190.26 of that capital. Add in dividends ($11.68 billion), gains on the sale of Citigroup common stock ($6.85 billion), and funds received from the sale of warrants ($7.67 billion) and the CPP has turned a “profit” thus far of about $11.6 billion. (Here’s the most recent TARP summary).

Last week, taxpayers received more returns as three institutions paid back portions of the funds they had taken as part of the CPP. (Here’s the report)

Beach Business Bank, based in Manhattan Beach, California, which took $6 million in January 2009, has been repaying in bits and pieces. On June 6, it paid back $1.2 million. The bank still owes taxpayers $300,000.

Mercantile Bank Corp., based in Grand Rapids, Michigan, took $21 million in May 2009. It paid back $10.5 million in April. And on June 6, it paid back the remaining $10.5 million. Treasury still owns warrants in the company.

River Valley Bancorporation, based in Wausau, Wisconsin, took $15 million in June 2009. On June 6, it paid back $10.5 million. River Valley still owes taxpayers $4.5 million.

Combined, the three banks returned $22.2 million in cash. Treasury is likely to reap more returns this week as it auctions to the public stakes in seven banks that took TARP funds.

Daniel Gross is economics editor at Yahoo! Finance

By Daniel Gross | Contrary Indicator – 

Nearly four years after the Lehman Brothers debacle, the government rescue efforts and bailouts continue to wind down. The central component of the TARP was the Capital Purchase Program (CPP), under which Treasury purchased preferred shares in hundreds of banks and received warrants in return. Banks started to return the capital in June 2009, with the largest institutions repaying first. In all, CPP recipients took public funds. Banks have returned $190.26 of that capital. Add in dividends ($11.68 billion), gains on the sale of Citigroup common stock ($6.85 billion), and funds received from the sale of warrants ($7.67 billion) and the CPP has turned a “profit” thus far of about $11.6 billion. (Here’s the most recent TARP summary).

Last week, taxpayers received more returns as three institutions paid back portions of the funds they had taken as part of the CPP. (Here’s the report)

Beach Business Bank, based in Manhattan Beach, California, which took $6 million in January 2009, has been repaying in bits and pieces. On June 6, it paid back $1.2 million. The bank still owes taxpayers $300,000.

Mercantile Bank Corp., based in Grand Rapids, Michigan, took $21 million in May 2009. It paid back $10.5 million in April. And on June 6, it paid back the remaining $10.5 million. Treasury still owns warrants in the company.

River Valley Bancorporation, based in Wausau, Wisconsin, took $15 million in June 2009. On June 6, it paid back $10.5 million. River Valley still owes taxpayers $4.5 million.

Combined, the three banks returned $22.2 million in cash. Treasury is likely to reap more returns this week as it auctions to the public stakes in seven banks that took TARP funds.

Daniel Gross is economics editor at Yahoo! Finance

 

via soundofheart.org

Posted via email from soulhangout's posterous