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WASHINGTON – The U.S. Department of the Treasury announced today that the following two financial institutions repurchased warrant positions Treasury received in consideration for investments made under the Troubled Asset Relief Program’s (TARP) Capital Purchase Program (CPP), delivering a total of $83.5 million in proceeds for taxpayers.
- First Horizon National Corporation (Memphis, TN): Repurchased 14.8 million warrants to purchase common stock of First Horizon National Corporation. (Total Proceeds Today for Taxpayers: $79.7 million)
- 1st Source Corporation (South Bend, IN): Repurchased 837,947 warrants to purchase common stock of 1st Source Corporation. (Total Proceeds Today for Taxpayers: $3.75 million)
With today’s proceeds, TARP repayments and income now total $287 billion – 70 percent of the $411 billion that has been disbursed to date for that program. Treasury currently expects that TARP investment programs taken as a whole – including financial support for banks, AIG, and the domestic auto industry; as well as targeted initiatives to restart the credit markets – will result in little or no cost to taxpayers.
In the President’s FY2012 Budget, the Administration estimated that the lifetime cost of the overall TARP program will be approximately $48 billion. When also including AIG common stock held for the benefit of Treasury outside of TARP – that projected cost drops to $28 billion.
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