It has been more than two years since the federal government enacted the Troubled Asset Relief Program in an effort to save the U.S. financial services industry in order to restore order to a banking system many felt was unable to stand on its own.
More than 700 banks borrowed roughly $204.9 billion in funds from taxpayers after former U.S. President George W. Bush signed the program into law in 2008. The size of investments made through the TARP program varied from as big as Bank of America®’s $35 billion aid package to the $301,000 borrowed by the Freeport State Bank, based in Kansas.
While the U.S. MyBankTracker.com decided to run its own assessment of the TARP program. Here’s what we discovered when playing with the numbers:
New York $80.2 billion
North Carolina $28.7 billion
California $27.7 billion
Pennsylvania $9.8 billion
Ohio $7.8 billion
At the other end of the spectrum, the states that borrowed the least from U.S. taxpayers were both Montana and Vermont—banks in those states borrowed absolutely nothing. Here’s the rest of the top five list:
State Amount State Amount
New York $80.2 billion Montana, Vermont $0
North Carolina $28.7 billion Alaska $4.78 million
California $27.7 billion Arizona $8.05 million
Pennsylvania $9.8 billion Wyoming $8.1 million
Ohio $7.8 billion
The banks owing the most were Regions Financial Corporation, based in Alabama ($3.5 billion), Marshall & Illsley Corporation in Wisconsin ($1.72 billion), Zions Bancorporation in Utah ($1.4 billion), Synovus Financial Corporation, in Georgia ($967.9 million) and Popular Inc. in Puerto Rico ($935 million). Here’s how it broke down by state:
State Amount State Amount State Outstanding Amount
New York $80.2 billion Montana, Vermont $0 Alabama $3.7 billion
North Carolina $28.7 billion Alaska $4.78 million Wisconsin $2.0 billion
California $27.7 billion Arizona $8.05 million Illinois $1.52 billion
Pennsylvania $9.8 billion Wyoming $8.1 million Utah $1.43 billion
Ohio $7.8 billion California $1.42 billion
New York also topped the list of states with banks that provided taxpayers with the largest amount of profits. Alone, New York banks were responsible for generating close to half of the total profits made in the TARP program, or, roughly $3.54 billion. California and Connecticut trailed far behind with $890.2 million and $715.2 million in profits.
|State||Amount||State||Amount||State||Outstanding Amount||Bank||Amount of Profit|
|New York||$80.2 billion||Montana, Vermont||$0||Alabama||$3.7 billion||Goldman Sachs||$1.1 billion|
|North Carolina||$28.7 billion||Alaska||$4.78 million||Wisconsin||$2.0 billion||JP Morgan||$950.3 million|
|California||$27.7 billion||Arizona||$8.05 million||Illinois||$1.52 billion||Morgan Stanley||$950 million|
|Pennsylvania||$9.8 billion||Wyoming||$8.1 million||Utah||$1.43 billion||Wells Fargo||$849.0 million|
|Ohio||$7.8 billion||California||$1.42 billion||Hartford Financial Services Group LLC||$713.7 million|
When it’s all said and done, U.S. banks have repaid just $179.4 billion of the investment and provided taxpayers with just over $7.5 billion in profits–or about 4% return on their investment. Government officials expect the TARP program to generate about $20 billion in profits over its lifetime, costs of the program are expected to reach $28 billion.
Whether or not these profits justified the investment is a question that will likely be debated for years and will depend primarily on how one defines a good investment, though the Dodd-Frank act essentially made a big bank bailouts a thing of the past. In the end, the true value of the entire TARP program for Americans could be in the 8.5 million jobs it helped save.