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Troubled Asset Relief Program

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NEWS
September 2, 2011
Penn Liberty Financial Corp., Wayne, said it had received $20 million from the U.S. Department of Treasury's Small Business Lending Fund and had used $10.5 million of it to repay the Treasury department's 2008 Troubled Asset Relief Program. Penn Liberty operates nine locations in Philadelphia's western suburbs. The bank had $421 million in deposits and $396 million in loans outstanding at the end of June. The Small Business Lending Fund is a $30 billion fund created last year that is supposed to encourage loans up to $10 million to companies with up to $50 million in annual sales by providing capital to community banks with assets of less than $10 billion.
BUSINESS
January 27, 2012 | Associated Press
WASHINGTON - A government watchdog says that U.S. taxpayers are still owed $132.9 billion that companies haven't repaid from the financial bailout, and that some of it will never be recovered. The bailout begun at the height of the financial crisis in September 2008 will continue for years, according to a report issued Thursday by Christy Romero, acting special inspector general for the $700 billion bailout. Some bailout programs, such as the effort to help homeowners avoid foreclosure by reducing mortgage payments, will last up to 2017, costing the government an additional $51 billion or so. The gyrating stock market has slowed the Treasury Department's efforts to sell off its stakes in 458 bailed-out companies, the report said.
NEWS
September 17, 2010 | By Martin Crutsinger, ASSOCIATED PRESS
WASHINGTON - The government says it has raised $213.7 million from the sale of warrants it held in Radnor-based Lincoln National Corp. It is the latest move to recoup costs for taxpayers from the $700 billion financial bailout. The Treasury Department said Friday that it sold 13.05 million warrants at a price of $16.60 per warrant. The government had set a minimum bid price of $13.50 for the warrants, which give the purchaser the right to buy common stock at a fixed price. The government obtained the warrants when it provided $950 million to Lincoln National in July 2009.
BUSINESS
May 1, 2009 | By Harold Brubaker INQUIRER STAFF WRITER
It is "outrageous" that the federal government - more than a year after the collapse of the Bear Stearns Cos. Inc. - has not begun a serious discussion of how to create a more stable financial system, former Federal Reserve Bank of St. Louis president William Poole said yesterday in Philadelphia. Poole, who grew up in Wilmington and graduated from Swarthmore College, said the nation could face "10 to 20 years of limping along in this very uncertain and unsatisfactory situation" if things continue as they are, with the government bailing out companies deemed too big to fail.
NEWS
January 27, 2009 | By Miriam Hill and Harold Brubaker INQUIRER STAFF WRITERS
It's probably not what the architects of the federal bank bailout intended. Most of the banks that agreed to finance $22 billion of Pfizer Inc.'s proposed $68 billion acquisition of Wyeth received funds from the federal government under its Troubled Asset Relief Program, or TARP. Now, they are participating in a deal that likely will lead to thousands of job cuts at the combined company. Morris Segall, president of SPG Trend Advisors, an economic-research firm in Baltimore, said deals like this were "totally anathema to what Congress has in mind.
NEWS
April 2, 2009
IMAGINE APPLYING for a business loan and telling the bank that instead of providing a plan for how you will use the money and how your company will make a profit, you'll do what you think is best and might let the bank later know what you did with the dough. Think you'd get the loan? Neither do we. Yet this is exactly the approach the Treasury Department is taking in giving away about $3 trillion of our money, says Elizabeth Warren, the Harvard professor appointed by Congress to oversee the bailout of financial institutions.
BUSINESS
May 9, 2009 | By Mike Armstrong INQUIRER STAFF WRITER
Wells Fargo & Co. chief executive officer John G. Stumpf had a pretty good reason why he couldn't fly from his San Francisco home to give a speech before Philadelphia's business community yesterday. Actually, $7.5 billion worth of reasons. The release of the results of the "stress tests" on 19 big banks by the Federal Reserve on Thursday at 5 p.m. meant that Stumpf's bank, which bought Wachovia Corp. in January, must raise $13.7 billion in capital. In a conference call Thursday evening, Stumpf told analysts that Wells Fargo didn't think it needed any more capital.
BUSINESS
May 30, 2009 | By Harold Brubaker INQUIRER STAFF WRITER
Sun Bancorp Inc. in Vineland, N.J., this week joined the handful of banks around the country that have ended their involvement in the federal rescue program for banks. Sun paid $2.1 million to buy back a warrant that gave the government a 10-year window to buy Sun shares at a preset price. Critics have pounced on the Treasury's repurchase deals with several relatively small banks, such as Sun, as short-changing taxpayers, who have trillions at stake in the nation's many-pronged economic-rescue effort.
NEWS
March 18, 2011
It's great that the federal bank bailout program known as the Troubled Asset Relief Program will cost taxpayers much less than the $356 billion originally projected. At $25 billion, the cost is still large. But as the Congressional Oversight Panel said in its final report on the Treasury Department's implementation of TARP, what's unknown is how much the success of TARP in stabilizing the financial system may cost us in the future. Because the federal government showed its willingness in a crisis to rescue anything deemed "too big to fail.
BUSINESS
December 31, 2008 | FROM INQUIRER WIRE SERVICES
GMAC Financial Services' $5 billion federal rescue, on the heels of the $17.4 billion automaker bailout approved by the Bush administration this month, gives some relief to auto dealers who had blamed the industry's steep drop in sales partially on a lack of affordable credit for car buyers. Michael Martin, who owns Chevrolet and Saturn brand dealerships in Manassas, Va., said he believed the loans would be key to turning around the auto industry, adding that GMAC's loosening of credit sets an example for banks that have yet to use their bailout funding to free up consumer loans.
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NEWS
September 24, 2012
The following is a synopsis of themes discussed in my new book, "Paying the Price," published this month by FT Press. Question: Did the federal fiscal stimulus succeed or fail as an antidote to the Great Recession? Answer: It succeeded. The temporary tax cuts and government spending increases launched in 2008 and 2009 were aimed at ending the recession and jump-starting an economic recovery. They did that. There were several rounds of stimulus, beginning with tax rebates sent out in the Bush administration's final days, but the stimulus most people remember is the American Recovery and Reinvestment Act. Worth nearly $800 billion, this legislation was passed in February 2009, just weeks after President Obama took office.
BUSINESS
April 17, 2012 | By David J. Lynch, BLOOMBERG NEWS
Two years after President Obama vowed to eliminate the danger of financial institutions becoming "too big to fail," the nation's largest banks are bigger than they were before the nation's credit markets seized up and required unprecedented bailouts by the government. Five banks — JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Wells Fargo & Co., and Goldman Sachs Group Inc. — held $8.5 trillion in assets at the end of 2011, equal to 56 percent of the U.S. economy, according to central bankers at the Federal Reserve.
BUSINESS
January 27, 2012 | Associated Press
WASHINGTON - A government watchdog says that U.S. taxpayers are still owed $132.9 billion that companies haven't repaid from the financial bailout, and that some of it will never be recovered. The bailout begun at the height of the financial crisis in September 2008 will continue for years, according to a report issued Thursday by Christy Romero, acting special inspector general for the $700 billion bailout. Some bailout programs, such as the effort to help homeowners avoid foreclosure by reducing mortgage payments, will last up to 2017, costing the government an additional $51 billion or so. The gyrating stock market has slowed the Treasury Department's efforts to sell off its stakes in 458 bailed-out companies, the report said.
BUSINESS
December 26, 2011 | By Mike Armstrong, Inquirer Columnist
I heard many complaints in the wake of the $840 billion federal economic-stimulus plan of 2009 that it did little to help small businesses. Congress followed up with 2010's Small Business Jobs Act, which included a $30 billion Small Business Lending Fund (SBLF). Once again, the program underwhelmed as many banks simply exchanged the capital they'd received through the Troubled Asset Relief Program for less-expensive capital from the SBLF. Now comes the $1.5 billion State Small Business Credit Initiative, which was also part of the jobs act. Each state was allocated an amount based on a formula that considered the number of jobs lost during the recession.
NEWS
September 2, 2011
Penn Liberty Financial Corp., Wayne, said it had received $20 million from the U.S. Department of Treasury's Small Business Lending Fund and had used $10.5 million of it to repay the Treasury department's 2008 Troubled Asset Relief Program. Penn Liberty operates nine locations in Philadelphia's western suburbs. The bank had $421 million in deposits and $396 million in loans outstanding at the end of June. The Small Business Lending Fund is a $30 billion fund created last year that is supposed to encourage loans up to $10 million to companies with up to $50 million in annual sales by providing capital to community banks with assets of less than $10 billion.
BUSINESS
May 23, 2011 | By Ronald D. Orol, McClatchy Newspapers
WASHINGTON - Seven months after legislation creating a $30 billion fund was enacted to encourage community banks to lend to small businesses, no money has gone out, and only about 20 percent of eligible institutions have applied for funding, according to a top lawmaker. "When can some of these banks receive the green light from you?" Senate Small Business Committee Chairwoman Mary Landrieu, a Louisiana Democrat, asked the Treasury Department at a hearing last week. "Several banks in Louisiana are excited about this opportunity.
NEWS
March 18, 2011
It's great that the federal bank bailout program known as the Troubled Asset Relief Program will cost taxpayers much less than the $356 billion originally projected. At $25 billion, the cost is still large. But as the Congressional Oversight Panel said in its final report on the Treasury Department's implementation of TARP, what's unknown is how much the success of TARP in stabilizing the financial system may cost us in the future. Because the federal government showed its willingness in a crisis to rescue anything deemed "too big to fail.
NEWS
November 14, 2010
Former President George W. Bush chuckled when an interviewer told him that half of Americans believe President Obama created the bank bailouts. "Fifty percent of the people were wrong, 'cause it happened on my watch," Bush said. Exit polls from the midterm election showed that a significant number of voters wanted to punish Obama and Democratic candidates for the bailouts. That sentiment overlooks the timing of the government's emergency action - Bush initiated the $700 billion Troubled Asset Relief Program for Wall Street in September 2008.
BUSINESS
October 7, 2010 | By Harold Brubaker, Inquirer Staff Writer
National Penn Bancshares Inc., among the Philadelphia-area banks hardest hit by the economic downturn, said Wednesday that it was selling a 16.7 percent stake in itself to private-equity firm Warburg Pincus L.L.C. for $150 million. National Penn chief executive officer Scott V. Fainor said the deal, done by selling shares to Warburg at about the current market value, showed that conditions at the Boyertown, Pa., bank had improved significantly. "We really wanted a deep due diligence done on our company because we were convinced we were bringing problem assets down," Fainor said in an interview.
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