On December 29, 2008, the Treasury announced an additional TARP investment in GMAC of $5 billion in senior preferred equity plus an additional loan to General Motors of up to $1 billion. In addition to the $348.4 billion already allocated under the TARP program, the Treasury has now committed $4.4 billion more than than the $350 billion that the Treasury is authorized to commit without congressional action under the Troubled Asset Relief Program. The Treasury Department noted that it could provide financing to GMAC because they have not actually used all of the money allocated for recapitalizing banks. The investment in GMAC is not under the TARP Capital Purchase program, but the terms of the investment are generally similar to the private company TARP Capital term sheet (but the preferred shares will pay an 8% dividend).
On December 23, 2008, American Express and CIT Group received approval to get $5.72 billion under the TARP Capital Purchase program, as a result of their new status as bank holding companies. In addition to the investments closed through December 23, 2008, the Treasury has now allocated $178.2 billion of the $250 billion allocated to recapitalize banks under the TARP Capital Purchase program.
Assuming the Treasury ultimately requests approval for the second $350 billion and Congress approves the request, there is $71.8 billion remaining to be allocated under the TARP Capital Purchase program. Without such congressional approval, there is $67.4 billion remaining.