Daniel Gross

Investment Vehicle Returns $331 million in TARP Funds

TARP returns are continuing to trickle in. Most of the focus has been on banks returning cash received as part of the Capital Purchase Program. But there were several other components designed to help the system, including aid to AIG, the rescue of Chrysler and General Motors, and some initiatives designed to remove toxic assets from banks' balance sheets. One of those was the Legacy Securities Public-Private Investment Program, in which Treasury lent money to and invested in entities formed by private-sector asset managers to purchase assets from banks, pension funds, and other unfortunate holders of pre-crisis paper. All in, Treasury committed $21.9 billion into the PPIP investment vehicles, managed by firms such as Blackrock and AllianceBernstein.

These funds have slowly been returning capital to Treasury as they collect interest or sell assets. On Thursday, June 14, the AllianceBernstein Legacy Securities Master Fund returned $331.2 million to taxpayers. (See page 32 of this report)

And there should be more where that came from.  As noted, Treasury put $21.9 billion in cash into the PPIP funds. With the latest repayment, $4.17 billion has been returned.

Daniel Gross is economics editor at Yahoo! Finance

Follow him on Twitter @grossdm; email him at grossdaniel11@yahoo.com

View Comments (0)