The Congressional Oversight Panel found that between 10/14/08 and 1/23/09, the Troubled Asset Relief Program (TARP):
The panel also found a huge variation in subsidy rates among institutions. Among the eight largest TARP transactions:
The panel observed that the variation in subsidy rates stemmed largely from the fact that TARP did not distinguish among institutions with different risks of insolvency. As a result, weaker institutions tended to receive higher subsidy rates.
COP's subsidy estimates (in dollar terms) are smaller than those made by the Congressional Budget Office because COP did not include subsidies to automotive companies. After accounting for that difference, both the COP and CBO estimates are broadly similar. Both organizations estimate similar subsidy rates.
| Transaction Date1 | Amount Received (billions of dollars) |
Estimated Subsidy (billions of dollars) |
Subsidy Rate (percent) |
|
|---|---|---|---|---|
| Capital Purchase Program | ||||
| Bank of America Corporation | 10/28/08 | 15.0 |
2.6 |
17% |
| Citigroup, Inc. | 10/28/08 | 25.0 |
9.5 |
38% |
| JP Morgan Chase & Co. | 10/28/08 | 25.0 |
4.4 |
18% |
| Morgan Stanley | 10/28/08 | 10.0 |
4.2 |
42% |
| The Goldman Sachs Group, Inc. | 10/28/08 | 10.0 |
2.5 |
25% |
| The PNC Financial Services Group | 12/31/08 | 7.6 |
2.1 |
27% |
| U.S. Bancorp | 11/14/08 | 6.6 |
0.3 |
5% |
| Wells Fargo & Company | 10/28/08 | 25.0 |
1.8 |
7% |
| Subtotal | 124.2 |
27.3 |
22% |
|
| Other Institutions2 | 70.0 |
15.4 |
22% |
|
| CPP Total | 194.2 |
42.7 |
22% |
|
| Systemically Significant Failing Institutions (SSFI) & Targeted Investment Program (TIP) | ||||
| American International Group, Inc. (AIG) | 11/25/2008 | 40.0 |
25.2 |
63% |
| Citigroup, Inc. | 12/31/2008 | 20.0 |
10.0 |
50% |
| SSFI/TIP Total | 60.0 |
35.2 |
59% |
|
| Grand Total | 254.2 |
78.0 |
31% |
|
| 1. Transaction date is from Treasury's Transaction Reports; the subsidy was estimated using market data when the agreements were announced which was earlier than the transaction date. (See COP report for details). | ||||
| 2. There were 311 other institutions. Subsidy estimates for those institutions were extrapolated using the 22% subsidy rate from the 8 CPP investments studied by COP. | ||||
| Source: Congressional Oversight Panel, "February Oversight Report: Valuing Treasury's Acquisitions." February 6, 2009. http://cop.senate.gov/documents/cop-020609-report-dpvaluation.pdf; page 7. | ||||
