On Friday, Treasury released its tenth Section 105(a) Troubled Assets Relief Program (TARP) report to Congress. The report, required under the Emergency Economic Stabilization Act of 2008 (EESA), is provided by Treasury every 30 days and summarizes, among other things, the various TARP programs and Treasury’s investment transactions over the preceding month.
A list of key developments during August included:
- Treasury’s receipt of $1.85 billion in interest, dividend and fee payments from all TARP programs. Total dividends and interest received by Treasury from TARP participants as of August 31, 2009 totaled $9.36 billion.
- Three financial institutions repaid Treasury’s investment under the Capital Purchase Program (CPP) in full, bringing total repayments to $70.3 billion through the August 2009. During the month, Treasury also made investments totaling $129.9 million in nine financial institutions under the CPP.
- Nine new mortgage servicers began participating in the Home Affordable Modification Program (HAMP) in August. As of the end of August, approximately 85 percent of all residential mortgages were covered by HAMP-participating servicers.
- Treasury and the Federal Reserve extended the Term Asset-Backed Securities Loan Facility for newly issued asset-backed securities and legacy commercial mortgage-backed securities through March 31, 2010 and for newly issued commercial mortgage-backed securities through June 30, 2010.
The report noted that of the $700 billion authorized for TARP by EESA, $644.4 billion had been allocated to a particular TARP program. Of this amount, $443.8 billion had been committed to specific institutions under signed contracts and $365 billion had been paid out under these contracts as of August 31, 2009.