TARP Repayments Surpass Amount Owed

The amount of Troubled Asset Relief Program (TARP) funds paid back to taxpayers has exceeded the amount of TARP funds outstanding, the U.S. Treasury Department reported on Friday.

The Treasury reports that through the end of May, TARP repayments have reached a total of $194 billion (there's $190 billion outstanding). TARP repayment officially surpassed the amount owed when the Treasury completed the sale of 1.5 billion shares of Citigroup, which provided $6.18 billion to taxpayers.

"TARP repayments have continued to exceed expectations, substantially reducing the projected cost of this program to taxpayers," said Assistant Secretary for Financial Stability Herb Allison. "This milestone is further evidence that TARP is achieving its intended objectives: stabilizing our financial system and laying the groundwork for economic recovery."

In addition to the $194 billion in TARP repayments, taxpayers have also received a further return on TARP investments of $23 billion through dividends, interest, and other income. Overall combined TARP revenues (repayments and other income) totaled $217 billion through the end of May.

The Treasury says that the overall cost of the TARP program has declined dramatically as repayment continue to exceed expectations. The Treasury notified Congress in May that the projected lifetime cost of the program has decreased by $11.4 billion to $105.4 billion since the FY 2011 President's Budget.



Source:
U.S. Department of the Treasury