The Federal Government’s Troubled Asset Relief Program (TARP) is slowly winding down, and with the sale of Citigroup, Inc (NYSE: C) stock, the Treasury Department has now received more in TARP payments than it has TARP funds outstanding.“TARP repayments to taxpayers have, for the first time, surpassed the total amount of TARP funds outstanding,” the Treasury Department announced Friday.
This does not mean that the bailout program has a balance of zero. Troubled firms still owe more than $190 billion in TARP money, but companies have repaid more than they owe, with $194 billion repaid to date. TARP had received $217 billion including dividends, interest and other income through May.
The number was boosted by the Treasury’s Department of 1.5 billion Citigroup, Inc (NYSE: C) shares which has netted $6.2 billion in proceeds. The government still owns 6.2 billion Citigroup, Inc (NYSE: C) shares which it will sell throughout the rest of the year.
“TARP repayments have continued to exceed expectations, substantially reducing the projected cost of this program to taxpayers,” said Herb Allison, the Treasury’s Assistant Secretary for Financial Stability. “This milestone is further evidence that TARP is achieving its intended objectives: stabilizing our financial system and laying the groundwork for economic recovery.”
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