Troubled Asset Relief Program - Expenditures and Commitments

Expenditures and Commitments

As of June 30, 2012 (2012-06-30), $467 billion had been allotted, and $416 billion spent, according a literature review on the TARP. Among the money committed, includes:

• $204.9 billion to purchase bank equity shares through the Capital Purchase Program
• $67.8 billion to purchase preferred shares of American International Group (AIG), then among the top 10 US companies, through the program for Systemically Significant Failing Institutions;
• $1.4 billion to back any losses that the Federal Reserve Bank of New York might incur under the Term Asset-Backed Securities Loan Facility;
• $40 billion in stock purchases of Citigroup and Bank of America ($20 billion each) through the Targeted Investment Program ($40 billion spent). All that money had been returned.
• $5 billion in loan guarantees for Citigroup ($5 billion). The program closed with no losses.;
• $79.7 billion in loans and capital injections to automakers and their financing arms through the Automotive Industry Financing Program.
• $21.9 billion to buy "toxic" mortgage related securities.
• $0.6 billion in capital for banks in Community Development Capital Initiative (CDCI) for banks serving disadvantaged communities.
• $45.6 billion for homeowner foreclosure assistance. Only $4.5 billion had been spent at the time.

The Congressional Budget Office released a report in January 2009, reviewing the transactions enacted through the TARP. The CBO found that through December 31, 2008, transactions under the TARP totaled $247 billion. According to the CBO's report, the Treasury had purchased $178 billion in shares of preferred stock and warrants from 214 U.S. financial institutions through its Capital Purchase Program (CPP). This included the purchase of $40 billion of preferred stock in AIG, $25 billion of preferred stock in Citigroup, and $15 billion of preferred stock in Bank of America. The Treasury also agreed to lend $18.4 billion to General Motors and Chrysler. The Treasury, the FDIC and the Federal Reserve have also agreed to guarantee a $306 billion portfolio of assets owned by Citigroup.

The CBO also estimated the subsidy cost for transactions under TARP. The subsidy cost is defined as, broadly speaking, the difference between what the Treasury paid for the investments or lent to the firms and the market value of those transactions, where the assets in question were valued using procedures similar to those specified in the Federal Credit Reform Act (FCRA), but adjusting for market risk as specified in the EESA. The CBO estimated that the subsidy cost of the $247 billion in transactions before December 31, 2008 amounts to $64 billion. An updated analysis from the Committee for a Responsible Federal Budget estimates a budgetary impact of $80 billion for all TARP spending as of February 3, 2009.