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5/13/2020 New Report Shows Higher Returns, Lower Spending Under TARP Than Previously Projected Deficit Impact of Program Cut Dramatically U.S. DEPARTMENT OF THE TREASURY Press Center New Report Shows Higher Returns, Lower Spending Under TARP Than Previously Projected Deficit Impact of Program Cut Dramatically 12/10/2009 TG-438 To view the report, visit link . WASHINGTON – The US Department of the Treasury today released a report that summarizes the fiscal year (FY) 2009 activities of the Troubled Asset Relief Program (TARP) and provides estimates from the Office of Financial Stability (OFS) detailing the lowered projected costs and higher projected returns of the TARP. The report demonstrates that Treasury's investments to stabilize the system are delivering higher returns than anticipated and that Treasury does not anticipate having to draw upon the full $700 billion in TARP authority. The impact of lower overall TARP investments and higher investment returns is projected to cut the impact of TARP on the deficit by about 60 percent or more from the August 2009 Mid-Session Review. The Government Accountability Office has audited the FY 2009 financial statements prepared by OFS for the TARP and stated that "the financial statements are presented fairly, in all material respects, in conformity with U.S. generally accepted accounting principles." Additionally, the GAO also found no material weaknesses in internal controls. During the period ended September 30, 2009, the Treasury-OFS disbursed $364 billion of the authorized $700 billion, most of it in the form of investments, and $73 billion of those TARP funds have already been repaid. During that same period, the investments generated $12.7 billion in cash received through interest, dividends, and the proceeds from the sale of warrants. For TARP's FY 2009 activities, Treasury reports net cost of operations of approximately $41.6 billion including administrative expenses. This reflects a reduction of $110 billion in FY 2009 costs from when the TARP programs were originated last year. As additional funds are disbursed, particularly for the housing initiative, the total cost of TARP is likely to rise, although it is anticipated to be at least $200 billion less than the $341 billion estimate in the August 2009 Mid-Session Review. ### https://www.treasury.gov/press-center/press-releases/Pages/tg438.aspx 1/2 5/13/2020 New Report Shows Higher Returns, Lower Spending Under TARP Than Previously Projected Deficit Impact of Program Cut Dramatically https://www.treasury.gov/press-center/press-releases/Pages/tg438.aspx 2/2
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