February 2, 2011
Treasury Announces the Bank TARP Program Nearing Profitability
Treasury announced that Fifth Third Bancorp of Cincinnati, Ohio has fully repaid its $3.4 billion in outstanding Troubled Asset Relief Program (TARP) funds. With this transaction, total repayments and other income from programs within TARP to provide direct financial support to banks (approximately $243 billion) have nearly surpassed total disbursements under those programs (approximately $245 billion). Treasury currently estimates that bank programs within TARP will ultimately provide a lifetime profit of nearly $20 billion to taxpayers.
Overall, across all TARP programs, – including financial support for banks, the domestic auto industry, and AIG; targeted initiatives to help restart the credit markets; and foreclosure prevention programs – Treasury has disbursed a total of approximately $410 billion. With today’s transactions, total program repayments (approximately $238 billion) and other income (approximately $36 billion) have reached more than $274 billion.
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