An Update on the Troubled Asset Relief Program (TARP) Funding Part 2

J. Randall Waterfield is a Director of Asure Software, which seeks to streamline office productivity by providing workplace systems that efficiently manage time and simplify common tasks. He also is the Chairman of a large financial institution, the Waterfield Group. For his experience and insights in the financial industry, numerous news organizations have hosted J. Randall Waterfield as a guest on their programs.

In December of 2012, the Department of the Treasury announced that it sold the last of its stock holdings in the American International Group (AIG) and that the sale brought the total profit from its combined loan and investments in AIG to over $22 billion. Thus far, the government reported that it has recovered 93 percent of the total funds disbursed, or $387 billion, in line with Waterfield’s forecasts. According to the most recent report on TARP, the program’s capitalization efforts, which infused over $245 billion into banks across the country, had thus far returned $268 billion, a surplus of just over $20 billion. The government also stated that in the next 12 to 15 months it will be arranging for the resale of its remaining 300 million shares of common stock in General Motors (GM).

This last step marks a significant point in the life of the program with the largest outstanding portion of debt residing with GM and Ally Financial (previously known as General Motors Acceptance Corporation). The Treasury hopes to close the book on TARP in the next few years, and the resale of its GM stock will be one of the final steps towards doing so.