On Friday Treasury released its current monthly progress report to Congress on the Troubled Asset Relief Program (TARP). The report is required under Section 105(a) of the Emergency Economic Stabilization Act of 2008 (EESA) and is the sixteenth report outlining the investment transactions and program implementations under TARP for February.

Key developments for February, 2010:

  • On February 10, 2010, Treasury received full payment on its $7.6 billion investment in PNC Bank, bringing the total amount of repaid TARP funds to more than $173 billion. Treasury has now received in repayments approximately 70% of the TARP funds invested in banks.
  • On February 18, 2010, Treasury announced its intention to sell warrants received from Bank of America Corporation, Washington Federal, Inc., Texas Capital Bancshares, Inc., and Signature Bank. The warrant sales are taking place throughout March and are being priced through public Dutch auctions.
  • The HAMP report released in January indicated a substantial increase in permanent loan modifications over December, bring the total to over 116,000. Homeowners have saved over $2.2 billion in the aggregate, and as of the end of February Treasury had disbursed approximately $60 million and has committed approximately $37 billion for future incentive payments. (February HAMP data can be found here.)
  • New programs under TARP include the Community Development Capital Initiative and the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets.

The report indicates that Treasury has received approximately $13.75 billion in total dividends, interest and other income from TARP programs through February 2010, and approximately $4 billion in warrant proceeds.