Posts Tagged ‘Treasury’

Citigroup given tax exemption for TARP exit

December 16th, 2009 Before You Invest

The US government has allowed Citigroup to escape paying billions of dollars in taxation as part of the deal that will see the bank return $20 billion worth of its taxpayer bailout from the Troubled Asset Relief Program (TARP), it has been reported.

Last week, the Internal Revenue Service gave Citigroup an exception to long-standing tax rules in order to help maintain the price of the shares in the company, reports the Washington Post.

As part of last year’s $45 billion bailout of the financial institution, the government converted $25 billion of its TARP funds into a 34 per cent share in Citigroup.

The Treasury said it will be selling these shares off to private investors over the course of the next 12 months to end government interest in the firm.

Citigroup is planning to raise the funds to pay back the $20 billion by selling $17 billion worth of common stock and around $3.5 billion in securities.

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Citigroup comes to terms with officials on TARP repayment

December 14th, 2009 Before You Invest

Citigroup reached an agreement with regulators and government officials regarding a plan to repay the Treasury for the $20 billion it received through the Troubled Asset Relief program. “We are pleased to be able to repay the U.S. government’s trust preferred securities and to terminate the loss-sharing agreement,” Citi CEO Vikram Pandit said in a statement.

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Citigroup ready to intensify effort to repay TARP funds

December 4th, 2009 Before You Invest

Bank of America’s announcement that it will soon repay the government for money it received through the Troubled Asset Relief Program put additional pressure on Citigroup to do the same. Citigroup executives, however, said the Treasury needs to sell its 34% stake in the bank before it can break free, sources said.

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416 US banks on FDIC’s problem bank list

August 29th, 2009 Before You Invest

A total of 416 US banks were on the Federal Deposit Insurance Corporation’s (FDIC’s) problem list during the second quarter of 2009, the regulatory body has revealed.

The figure, which is a 15-year high, is a sharp rise on the 111 that were included during the first three months of the year.

Shelia Bair, chairman of the FDIC, said that there has been a steady increase in the proportion of financial institutions that are troubled, but added that levels are “still well below” those seen during the previous financial crisis.

“As banks and thrifts continue cleaning up their balance sheets, more are coming on to our problem list,” she explained, noting that there have been 81 failures so far this year.

The FDIC stated its deposit insurance fund was down to $10.4 billion during the three-month period – a fall of 20 per cent – but that it will not be asking for further funding from the Treasury.

Colonial BancGroup is one bank to have failed so far this year, with the financial institution filing for bankruptcy recently after its retail banking operations collapsed.

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Treasury collects $7.3B from banks that tapped TARP

August 28th, 2009 Before You Invest

The many banks that received state aid through the Troubled Asset Relief Program have paid a total of $7.3 billion in dividend payments to the Treasury. Citigroup contributed $648 million as part of a deal that resulted in the government taking a 34% stake in the bank.


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BlackRock, Invesco, Wellington reportedly tapped for PPIP

July 8th, 2009 Before You Invest

Wellington, Invesco and BlackRock are among the eight to 10 asset managers selected by the Treasury to participate in the Public-Private Investment Program, sources said. Pimco also is expected to be among those chosen. The program will launch with roughly $20 billion.


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Economic reports this week

July 6th, 2009 Before You Invest


Mon July 6 Tue July 7 Wed July 8 Thur July 9 Fri July 10

- ISM Non-Mfg Index
10:00 AM ET

- 4-Week Bill Announcement
11:00 AM ET

- 3-Month Bill Auction
11:30 AM ET

- 6-Month Bill Auction
11:30 AM ET

- 10-Yr TIPS Auction
1:00 PM ET

- ICSC-Goldman Store Sales
7:45 AM ET

- Redbook
8:55 AM ET

- 4-Week Bill Auction
1:00 PM ET

- 3-Yr Note Auction
1:00 PM ET

- Treasury STRIPS
3:00 PM ET

- MBA Purchase Applications
7:00 AM ET

- EIA Petroleum Status Report
10:30 AM ET

- 10-Yr Note Auction
1:00 PM ET

- Consumer Credit
3:00 PM ET

- Weekly Bill Settlement

- Chain Store Sales

- Elizabeth Duke Speaks
8:00 AM ET

- Jobless Claims
8:30 AM ET

- Wholesale Trade
10:00 AM ET

- EIA Natural Gas Report
10:30 AM ET

- 3-Month Bill Announcement
11:00 AM ET

- 6-Month Bill Announcement
11:00 AM ET

- 30-Yr Bond Auction
1:00 PM ET

- Fed Balance Sheet
4:30 PM ET

- Money Supply
4:30 PM ET

- International Trade
8:30 AM ET

- Import and Export Prices
8:30 AM ET

- Consumer Sentiment
9:55 AM ET

- Tim Geithner Speaks 10:00 AM ET

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Tesco could buy Northern Rock

July 3rd, 2009 Before You Invest

The UK’s biggest supermarket group Tesco is interested in buying the nationalized bank Northern Rock, the Times has claimed.

Government ministers are keen to return the troubled lender to the private sector, preferably at a profit, before the next general election with an outright sale preferred to floatation because it will be quicker, the newspaper added.

In order to attract potential buyers, the Treasury plans to split the bank’s good and bad assets, with some of the most toxic assets likely to stay in public ownership. The Times said Northern Rock currently has deposits of £19.5 billion, with a mortgage book worth around £66.7 billion.

However, ministers may have to wait for the European Commission to clear any division of good and bad assets, as this may constitute an unacceptable level of state aid, the publication noted.

Other potential suitors are believed to include Sir Richard Branson’s Virgin Group and a number of private equity funds.

Northern Rock was nationalized in February 2008.

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This Day in Wall Street History 1934: ‘Silver Purchase Act’ is passed

June 19th, 2009 Before You Invest

President Franklin Roosevelt’s first term in office was packed with busy days, and June 19, 1934, was certainly no exception.

Indeed, on this day Congress passed a veritable smorgasbord of legislation, including the “Silver Purchase Act.” Along with nationalizing silver stocks, the bill charged the president with increasing the Treasury’s silver supply.

Though silver was hardly about to supplant the gold standard, the legislation called for silver to equal one-third of the Treasury’s gold holdings. And, while to some to the “Silver Act” was perhaps little more than another blip during Roosevelt’s furious first term, the passage of the bill marked a rare victory for the long-suffering silver movement, which had pushed for the adoption of metal since the late 19th century.

Source: History.com

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Treasury to get at least $50B in initial TARP repayments

June 10th, 2009 Before You Invest

The Treasury is expecting to receive at least $50 billion from banks that were approved to exit the Troubled Asset Relief Program, sources said, and as many as 10 banks received approval. While many of the banks are expected to continue tapping other government programs, the repayments indicate the banking sector is seeing significant improvement.


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