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10 Year Anniversary of the TARP Capital Purchase Program

October 15, 2018

Authors

Robert Klingler

10 Year Anniversary of the TARP Capital Purchase Program

October 15, 2018

by: Robert Klingler

Ten years ago, on October 13, 2008, the U.S. Treasury Secretary Henry Paulson effectively locked the CEO’s of the nine largest banks in the United States in a conference room and demanded that they accept an investment from the U.S. Government. Although we had front row seats for much of the activity over the ensuing years, reading the New York Times summary of that meeting from the following day still provides a sense of just how shocking all of this was.

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Dwindling Treasury Holdings of TARP Stock

July 17, 2014

Authors

Robert Klingler

Dwindling Treasury Holdings of TARP Stock

July 17, 2014

by: Robert Klingler

Out of the original investment of $204.9 billion in 707 institutions under the TARP CPP program, the U.S. Treasury currently only holds its original investment in 44 financial institutions representing a total outstanding investment of $422 million. In other words, the Treasury still holds its investment in about 6% of the financial institutions invested in through the CPP program, but those institutions represent only 0.2% of the amount invested. As the U.S. has already collected $225.9 billion in total TARP CPP proceeds, the ultimate disposition of the remaining 44 financial institutions will have no material impact on the $20 billion

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US TARP CPP Portfolio as of March 2014

March 19, 2014

Authors

Robert Klingler

US TARP CPP Portfolio as of March 2014

March 19, 2014

by: Robert Klingler

Out of the original investment of $204.9 billion in 707 institutions under the TARP CPP program, the U.S. Treasury currently only holds its original investment in 67 financial institutions representing a total outstanding investment of $641 million. In other words, the Treasury still holds its investment in about 10% of the financial institutions invested in through the CPP program, but those institutions represent less than 0.4% of the amount invested. As the U.S. has already collected $225.0 billion in total TARP CPP proceeds, the ultimate disposition of the remaining 67 financial institutions will have no material impact on the $20

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Remaining TARP Banks

May 22, 2013

Authors

Robert Klingler

Remaining TARP Banks

May 22, 2013

by: Robert Klingler

As of April 30, 2013, there were 154 institutions remaining in the TARP CPP program.  Courtesy of the April 2013 Monthly Report to Congress, here are the current regional breakdowns of the remaining TARP CPP institutions.

WesternApril2013WesternApril2013

CentralApril2013CentralApril2013

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TARP – Where Are We Now?

May 7, 2013

Authors

Robert Klingler

TARP – Where Are We Now?

May 7, 2013

by: Robert Klingler

As of May 3, 2013, the U.S. Treasury has completed auctions for TARP CPP investments in 126 financial institutions, representing an original principal investment of $2.7 billion.  The Treasury continues to hold TARP CPP investments in 159 financial institutions, representing an original principal investment of $4.9 billion.  (Note, the Treasury has already received over $17 billion more in repayments then it originally invested as part of the TARP CPP program; even if Treasury receives zero return on the remaining investments, it will still be a profitable investment for the Treasury.)

Out of the 53 investments that Treasury identified in

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Results of Sixteen TARP Auction Rounds

May 6, 2013

Authors

Robert Klingler

Results of Sixteen TARP Auction Rounds

May 6, 2013

by: Robert Klingler

In April, the U.S. Treasury completed its sixteenth round of individual auctions of TARP CPP securities.  By my calculations, Treasury has now completed auctions of its investments in 126 financial institutions, with auction sales totaling approximately $2.4 billion at an aggregate discount of approximately 15%.

The 126 institutions originally represented $2.75 billion in investments in U.S. depository institutions, ranging from investments as small as $430,000 to as large as $267 million.  When you combine the dividends that have been paid to the U.S. Treasury by these institutions, the Treasury has received a gross profit of approximately $110 million.  The fact

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Treasury Updates TARP Wind-Down Plans

December 19, 2012

Authors

Robert Klingler

Treasury Updates TARP Wind-Down Plans

December 19, 2012

by: Robert Klingler

On December 18, 2012, the Treasury provided an update on the wind down of the TARP bank investment programs and also announced the future auction of 53 TARP investments, approximately 25% of the remaining pool of investments.

As previously announced, Treasury is pursuing three basic options to exit the TARP program:  (1) waiting for banks to repay; (2) selling investments (typically by auction); and, in limited circumstances,  (3) restructuring investments to facilitate repayment or sale.  Since March 2012, Treasury has completed 91 auctions and had an additional 49 banks repay Treasury at par value.  Treasury indicated that,

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TARP CPP Securities and the Bank Holding Company Act

July 23, 2012

Authors

Robert Klingler and Jonathan Hightower

TARP CPP Securities and the Bank Holding Company Act

July 23, 2012

by: Robert Klingler and Jonathan Hightower

In connection with the contemplated pooled auction of TARP CPP securities, Treasury has explicitly reminded potential participants that purchasers are responsible for compliance with the Bank Holding Company Act of 1956, as amended.  The Form of Bid Letter includes a representation that each bidder is “aware of the potential implications of a purchase of any CPP securities under the Bank Holding Company Act, in particular, with respect to holding certain percentages of “voting securities” or more than one third of a financial institutions total equity.”

These statements have led to a number of questions regarding the impact of the Bank

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TARP CPP Auctions: Round 4 Announced

July 13, 2012

Authors

Robert Klingler

TARP CPP Auctions: Round 4 Announced

July 13, 2012

by: Robert Klingler

On July 9, 2012, the U.S. Treasury announced its intent to commence the fourth round of individual auctions of TARP CPP securities, commencing July 23, 2012.  In this fourth round, Treasury has identified 12 institutions holding a total of approximately $346 million of TARP CPP securities.

Specifically, the fourth round will include:

TARP CPP Auctions: The First Three Rounds and What’s Next

June 28, 2012

Authors

Robert Klingler

TARP CPP Auctions: The First Three Rounds and What’s Next

June 28, 2012

by: Robert Klingler

On June 27, 2012, Treasury completed its third round of individual auctions for TARP CPP banks, further solidifying the $19 billion positive return recognized by Treasury on the TARP CPP program.  As discussed further below, this third round also brought the best results to Treasury.

Summary results (along with links to the Treasury Press Releases announcing pricing) are presented below:

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