Financial Crisis News Center

GM Makes First Quarterly Repayment

This story appeared in Bank Digest.

The Treasury Department has received the first quarterly $1 billion repayment from General Motors as part of the company’s accelerated plan to exit the federal government’s investments under the Troubled Asset Relief Program.

Treasury Releases Latest Capital Purchase Program Transactions

This story appeared in Bank Digest.

The Treasury Department has released the latest transactions completed under its Capital Purchase Program. As of Dec. 15, 2009, the Treasury Department has received $96,250,045,000 in capital repayments.

Additional Initial Closing of PPIF

This story appeared in Bank Digest.

The Treasury Department has announced that Oaktree Capital Management, L.P., has completed an initial closing of a Public-Private Investment Fund (PPIF) established under the Legacy Securities Public-Private Investment Program (PPIP). All nine pre-qualified PPIP fund managers have now completed an initial closing. Oaktree has partnered on the PPIF with Arctic Slope Regional Corporation, a small and minority-owned business based in Alaska. To date, the PPIFs have completed initial and subsequent closings on approximately $6.0 billion of private sector equity capital which has been matched 100 percent by the Treasury Department, representing $12.0 billion of total equity capital. The Treasury Department has also provided $12.0 billion of debt capital, representing $24.0 billion of total purchasing power.

Treasury Posts CPP Contracts

This story appeared in Bank Digest

In its move to increase transparency, the Treasury Department has posted the investment contracts it has entered into with banks under the Capital Purchase Program (CPP). Unless otherwise noted, the contracts were executed on Dec. 11, 2009: Broadway Financial Corporation (12-4-09); Delmar Bancorp (12-4-09); Fidelity Federal Bancorp (11-13-09); First Community Financial Partners, Inc.; First Resource Bank II; First Western Financial, Inc.; HPK Financial Corporation (11-13-09); Liberty Bancshares, Inc. (12-4-09); Nationwide Bankshares, Inc.; Presidio Bank (11-20-09); and Wachusett Financial Services, Inc.

HAMP Servicer Agreements Released

This story appeared in Bank Digest.

The Treasury Department has posted the following servicer participation agreements for the Home Affordable Modification Program (HAMP): American Eagle FCU; Baygulf Credit Union; Community Bank And Trust Co.; Fidelity Homestead Savings Bank; Glenview State Bank; Hartford Savings Bank; Idaho Housing and Finance Association; Silver State Schools Credit Union; Spirit of Alaska Federal Credit Union; Sterling Savings Bank; The Golden 1 Credit Union; and Verity Credit Union. 

These agreements are the first step servicers need to take to participate in HAMP for loans that are not owned, securitized or guaranteed by Fannie Mae or Freddie Mac.

Treasury Department Issues Cumulative Dividends Report

This story appeared in Bank Digest.

The Treasury Department has released its Cumulative Dividends Report as of Nov. 30, 2009. The report covers the dividends paid by financial institutions that have received assistance from the federal government pursuant to such programs as the Capital Purchase Program, Systemically Significant Failing Institution Program or Automotive Industry Financing Program.

Treasury Releases Latest Capital Purchase Program Transactions

This story appeared in Bank Digest.

The Treasury Department has released the latest transactions completed under its Capital Purchase Program. As of Dec. 15, 2009, the Treasury has invested $204,808,576,320 in 768 financial institutions. In addition, $4,014,337,003 in warrant proceeds have been repurchased by financial institutions or sold by the Treasury as part of a registered public offering of the warrants issued by the financial institution.

SIGTARP Reviews CPP Exit Process

This story appeared in Bank Digest.

The Office of the Special Inspector General for the Troubled Asset Relief Program has issued an Engagement Memorandum regarding the exit process for the Capital Purchase Program. Specifically, the SIGTARP seeks to assess the process the Office of Financial Stability has established for banks to exit the CPP including the role of the federal banking regulators in the process.

Constitutionality of Plan to Re-Direct TARP Funds Challenged

By Serena Lynn, Editor, the CCH Federal Banking Law Reporter and Bank Digest.

House Committee on Oversight and Government Reform Republicans have sent a letter to President Barack Obama expressing concern over the Administration's intention to redirect taxpayer money from the Troubled Asset Relief Program (TARP) to pay for new programs. "We are deeply troubled by your willingness to ignore the clear intent of Congress, which enacted TARP as a temporary measure designed exclusively to stabilize the financial markets," Committee Republicans wrote. "Spending billions of dollars on additional wasteful attempts at creating jobs through government projects does not reflect TARP's original purpose and ignores the will of the people's representatives in Congress." The letter was signed by the Committee's Ranking Member Darrell Issa, R-Calif., and Reps. Dan Burton, R-Ind., Mark Souder, R-Ind., Brian Bilbray, R-Calif., Lynn Westmoreland, R-Ga., Jason Chaffetz, R-Utah, Blaine Luetkemeyer, R-Mo., Jeff Flake, R-Ariz., Jim Jordan, R-Ohio, and Mark Souder, R-Ind.

October 2009 Monthly Bank Lending Survey Released

This story appeared in Bank Digest.

The Treasury Department has released results from its monthly bank lending survey for October with data from the top 22 recipients of government investments through the Capital Purchase Program (CPP). The October survey found that outstanding loan balances increased 5 percent from October 2008 to October 2009 and total originations decreased 9 percent from October 2008.