Last week, Treasury released its monthly progress report to Congress on the Troubled Assets Relief Program (TARP). The report, required every 30 days under Section 105(a) of the Emergency Economic Stabilization Act of 2008 (EESA), is the eleventh provided to Congress and summarizes Treasury’s implementation of the various TARP programs and investment transactions during September.

Key TARP developments and initiatives over the last month included:

  • Treasury’s receipt of $140.84 million in dividend, interest and fee payments under all TARP programs. Total dividend, interest and fees received by Treasury as of September 30, 2009 equaled $9.5 billion.
  • During September, seven banks repaid a total of $403.94 million of Treasury investments, bringing total repayments to $70.72 billion as of the end of the month.
  • Treasury invested $140.81 in 14 financial institutions under the Capital Purchase Program (CPP). To date, 685 financial institutions have received CPP funding, of which Treasury has investments outstanding in 646.
  • More than 85 percent of all residential mortgages were covered by mortgage servicers participating in the Home Affordable Modification Program (HAMP). Sixteen new servicers signed up to participate in the program during September.
  • The two initial Public-Private Investment Funds (PPIF) closings were conducted on September 30, 2009. “Treasury’s maximum equity obligation to each PPIF is $1.11 billion. Treasury also will make a loan to each PPIF, up to a maximum of $2.22 billion.”

The report also noted termination (on September 21, 2009) of negotiations between the Federal Reserve, FDIC and Bank of America regarding an agreement to share potential losses on a $118 billion pool of troubled assets held by Bank of America, most of which were obtained through the acquisition of Merrill Lynch. “In connection with that termination and in recognition of the benefits provided by entering into the term sheet for such arrangement, Bank of America paid the U.S. government $425 million.”