December 9, 2009 / 9:12 PM / 10 years ago

FACTBOX: Where has the U.S. bailout money gone?

(Reuters) - U.S. Treasury Secretary Timothy Geithner on Wednesday notified Congress that the Obama administration was extending until October 3, 2010, its authority to tap the $700 billion financial rescue fund.

In a letter to congressional leaders, Geithner said the administration does not expect to deploy more than $550 billion from the fund, which was created by Congress in October 2008 at the height of the financial crisis.

He also said he expected up to $175 billion in repayments by the end of next year and substantial additional amounts after that. Bank of America Corp said on Wednesday it repaid the $45 billion it received.

Geithner said the administration would limit new commitments to three areas: housing, capital for small and community banks to foster small business lending, and possibly, increased capital for the Term Asset-Backed Securities Loan Facility, a Federal Reserve program aimed at easing credit for consumers and small businesses.

Following is a rundown of what remains in the fund and uses of the money so far.


— A total of $560.70 billion of TARP funds were allocated at the end of November to investments in banks, the auto industry, American International Group Inc, asset guarantees, housing support, lending programs and toxic-asset purchases.

— From these allocations, the Treasury has made specific face-value obligations totaling $472.51 billion.

— The Treasury has actually disbursed only about $370 billion of these specific commitments.

— Before TARP repayments, the Treasury had $139.30 billion in capacity that was never allocated. After repayments to date, TARP has about $212.5 billion in capacity remaining.


— Banks have repaid $116.03 billion of TARP funds, including the $45 billion repayment by Bank of America. Automotive-related companies have paid down loans by $2.15 billion.

— Citigroup Inc is in talks with the Treasury to repay taxpayer funds, although people briefed on the matter have said the two sides disagree on how much money the bank needs to raise. CNBC on Wednesday reported that Citigroup, which received a $45 billion infusion of taxpayer funds, was likely to announce capital-raising plans this week.

— The Treasury estimates that repayments from banks could reach $175 billion by the end of 2010. By the end of this year, Treasury will have recovered nearly one-third of disbursements made under TARP.


— The Treasury has received around $9.77 billion in dividends paid on investments made through the TARP program, based on latest available data.

— The Treasury has received about $3.05 billion from the sale of stock warrants, including $148.7 million in proceeds from an auction of warrants in Capital One Financial Corp.

— The Treasury is expected soon to announce an auction of warrants in JPMorgan Chase & Co.. Bank of America has not yet announced whether it will try to repurchase warrants held by the government.


— The Treasury closed the Capital Purchase Program — its main vehicle for bank capital injections — to new investments as of the end of November. It made $204.71 billion in investments out of a planned allocation of $208 billion. Banks have repaid $71.03 billion of this so far, leaving an investment balance of $133.68 billion before the $45 billion Bank of America repayment.

— The Treasury also terminated its Capital Assistance Program with no investments. The program was intended to aid large banks determined to need more capital after regulator stress tests in May, but all but one, GMAC Financial Services, were able to raise funds from private sources. GMAC is expected to access a TARP auto industry financing program instead.

— The Targeted Investment Program, used to provide $25 billion in extraordinary aid to Citigroup and $20 billion to Bank of America, also was closed.


— $30 billion allocated to fund the Treasury’s Public-Private Investment Program to purchase toxic assets. It has committed $23.33 billion to specific funds so far but has disbursed only $1.38 billion of this amount.

— $50 billion pledged to reduce mortgage foreclosures by providing incentives to lenders and servicers to modify loans. It has allocated $27.35 billion in potential incentives to 76 firms so far.

— $69.84 billion preferred stock investment in troubled insurer AIG. This was reduced by $165 million from an earlier commitment, representing the amount of controversial bonuses paid by AIG in March.

— $86.60 billion allocated to support the struggling U.S. auto industry. Of this, a net $75.90 billion had been disbursed, including bankruptcy financing and other loans to GM and Chrysler LLC, $5 billion in support for auto parts suppliers, and a $12.5 billion investment in GMAC.

— $70 billion allocated to support consumer and small business lending initiatives. Of this, only $20 billion has been committed to support the Federal Reserve’s Term Asset-Backed Securities Loan Facility. The Obama administration is developing a program to provide capital to community banks to boost lending to small businesses.

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