The ""U.S. Treasury Department"":http://www.treasury.gov says with ""Fifth Third Bancorp's"":https://www.53.com full repayment Wednesday of its $3.4 billion in Troubled Asset Relief Program (TARP) funds, the government's bailout of the nation's banking system is ""nearing profitability.""
[IMAGE] Total repayments and other income from programs within TARP to provide direct financial support to banks now comes to $243 billion, very near surpassing total disbursements under those programs of $245 billion.
Treasury currently estimates that bank programs within TARP will ultimately provide a lifetime profit of nearly $20 billion to taxpayers.
Ã¢â‚¬Å“We expect that the programs within TARP to provide direct financial support to banks will provide a profit for[COLUMN_BREAK]
taxpayers, and todayÃ¢â‚¬â„¢s repayments move us even closer to achieving that result,Ã¢â‚¬Â said Tim Massad, acting assistant secretary for financial stability.
Massad continued, Ã¢â‚¬Å“As the economy heals, weÃ¢â‚¬â„¢re continuing to see private capital step up and replace public support in the financial sector, which has dramatically lowered the cost of TARP for taxpayers.Ã¢â‚¬Â
Overall, across all TARP programs, Ã¢â‚¬" including financial support for banks, the auto industry, and AIG; targeted initiatives to help restart the credit markets; and foreclosure prevention programs Ã¢â‚¬" Treasury has disbursed a total of approximately $410 billion. Total program repayments (approximately $238 billion) and other income (approximately $36 billion) have reached more than $274 billion.
In its December 2010 monthly report to Congress on TARP, Treasury recently estimated that the lifetime cost of the overall TARP program would be approximately $48 billion. When also including AIG common stock held for the benefit of Treasury outside of TARP Ã¢â‚¬" that projected cost drops to $28 billion.
Overall, TARP investment programs are expected to either nearly break even or turn a profit. Treasury says the lifetime cost of TARP is primarily concentrated within funds disbursed for foreclosure prevention programs, which are not intended to be recovered.