GM and Wells Fargo Jump on the Bandwagon
General Motors and Wells Fargo have both just announced that they intend to repay all of the $6.7 billion and $25 billion, respectively, in outstanding TARP investments. GM said it hopes to repay the Treasury by the end of June, but Wells Fargo did not offer a time frame.
As with Bank of America and Citigroup, the $6.7 billion that GM owes the Treasury far understates the complete efforts taken by the government to shore-up the company. Since last December, TARP has provided GM with over $50 billion in loans and capital infusions. Although GM only owes $6.7 billion to the Treasury, the federal government currently holds a 61 percent ownership stake in the company. As with Citigroup, the government will still own a portion of the company after the TARP repayment, and will have to make separate sales of its shares in the open market.
Below is a table of all the companies still heavily in debt to the government, but who have stated that they will repurchase all assets from TARP.
|Announcement of Repayment||Value of Assets to Repurchase from TARP
|Bank of America||12/2/2009||$45 billion|
|Wells Fargo||12/14/2009||$25 billion|
|General Motors||12/14/2009||$6.7 billion|
Several large banks have already repurchased assets held by the Treasury, including J.P. Morgan Chase, Goldman Sachs, Morgan Stanley, U.S. Bancorp, and Capital One. Several other large banks, such as PNC, have neither repaid TARP funds nor committed to doing so.
CRFB will continue to track TARP investments and repayments at Stimulus.org.