May 6, 2009
Authored by: Robert Klingler
From October 28, 2008 through May 1, 2009, a period covering just over six months, the United States Treasury Department has completed 574 investments under the TARP Capital Purchase Program in 572 different financial institutions, resulting in total investments of just over $199.0 billion.
- The institutions receiving the 30 largest investments (representing just over 5% of the recipients) have received $180.1 billion, or 90.5% of the disbursed funds.
- 277 receiving institutions are publicly traded (48%); 279 are private (49%); 13 are community development financial institutions (CDFIs) (2%); and 3 are Subchapter S institutions (<1%).
- The publicly traded institutions have received $195.6 billion (98%); the private institutions have received $3.3 billion (<2%); the CDFIs have received $105 million (<1%); and Sub S institutions have received $19.9 million (<0.01%).
- Despite the recent news that redemption of the TARP funds will be difficult, eleven institutions (9 public and 2 private) have already redeemed their TARP funds, totaling $1.0 billion. Of the eleven redemptions, only one completed a qualified equity offering before redeeming the TARP funds. One of the redeeming institutions held the TARP funds for only 75 days; for that investment, the Treasury earned (and the institution paid) an annualized 30% return.
- Despite the recent news emphasis on banks desiring to redeem shares, institutions receiving funds each week still greatly outnumbers the institutions seeking to return TARP funds. Since the first redemption on March 31, 2009, there have been 11 redemptions and 40 institutions accepting new investments. With the Treasury just starting to investment in Subchapter S institutions and the deadline for mutual organizations to apply still looming, one can expect more new investments then redemptions for a period of time.
- California has 69 recipients of TARP funds. North Carolina and Illinois tie for second with just 27 recipients each. Missouri is right behind at 26 recipients. See our regularly updated list of TARP Capital Recipients by State or Map of TARP Capital recipients.