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Taking stock of the US government’s portfolio
As part of its ongoing efforts to wind down and recover its remaining Capital Purchase Program (CPP) investments under the Troubled Asset Relief Program (TARP), the U.S. Department of the Treasury has announced its intention to sell several preferred stock CPP investments.
The Treasury intends to conduct auctions for all of its preferred stock (the CPP Securities) in:
• Bank of George (Las Vegas, NV);
• Blue Valley Ban Corp. (Overland Park, KS); • Centrue Financial Corporation (Ottawa, IL); • Eastern Virginia Bankshares, Inc. (Tappahannock, VA); • Liberty Shares, Inc. (Hinesville, GA); • Oregon Bancorp, Inc. (Salem, OR); • Spirit BankCorp, Inc. (Bristow, OK); and • Valley Community Bank (Pleasanton, CA).
These auctions are part of a series of auctions that will include the CPP Securities of the 53 financial institutions included in the department’s December 2012 announcement and are part of the overall strategy that the Treasury outlined for winding down its remaining TARP bank investments in a way that protects taxpayer interests, promotes financial stability, and preserves the strength of our nation’s community banks.
Treasury sources indicated that it intends to use a combination of repayments, restructurings, and sales to manage and recover those remaining investments.
TARP’s bank programs have already earned a significant profit for taxpayers. To date, the Treasury has recovered almost $273 billion from TARP’s bank programs through repayments, dividends, interest, and other income – compared to the $245 billion initially invested. Approximately $2 billion of the repayments were refinanced under the Small Business Lending Fund (SBLF). Congress created the SBLF outside of TARP and required Treasury to let CPP institutions repay TARP funds by borrowing under that program.
