Out of the original investment of $204.9 billion in 707 institutions under the TARP CPP program, the U.S. Treasury currently only holds its original investment in 44 financial institutions representing a total outstanding investment of $422 million. In other words, the Treasury still holds its investment in about 6% of the financial institutions invested in through the CPP program, but those institutions represent only 0.2% of the amount invested. As the U.S. has already collected $225.9 billion in total TARP CPP proceeds, the ultimate disposition of the remaining 44 financial institutions will have no material impact on the $20 billion gain recognized by the U.S. Treasury through the TARP CPP program.
The 44 remaining TARP CPP investments range from $1 million to just over $50 million, with an average original investment of $9.6 million. 35 of the 44 remaining institutions have missed dividend/interest payments, with a total of $72 million in missed dividend payments (which includes $20 million in missed non-cumulative dividends in which the institutions have no obligation to repay). Overall, the remaining portfolio investments have missed 11.5 quarterly dividend payments, but if you exclude the 9 institutions that remain current, the average investment has missed 14.5 quarterly dividend payments.
33 of the remaining institutions hold cumulative preferred stock (25 of which are not current, with 8 remaining current), 7 institutions hold noncumulative preferred stock (all of which is not current), and 4 institutions hold subordinated debt (3 of which are not current, with the other current). The 35 institutions that are not current received a total investment of $350 million (or approximately $10 million each), while the 9 remaining institutions that are current received a total investment of $72 million (or approximately $8 million each).
The size of the remaining Treasury portfolio continues to dwindle, raising continued questions whether Treasury will switch to a pooled-auction format to ultimately dispose of its remaining investments. Of the 44 remaining, only 15 have investments of $10 million or more, and 19 have investments of less than $5 million. The 44 remaining include two institutions where Treasury has agreed to a discounted repurchase in connection with a recapitalization, but that resolution method remains relatively rare.
