GAO: Bailed-out Banks Paying Dividends

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


On Tuesday, the Government Accountability Office released its latest report on the Troubled Asset Relief Program. Like everything the GAO puts out, the report is long and wonky, but to summarize, the GAO thinks the Treasury is a bit disorganized: It hasn’t hired asset managers to oversee bailout repayment agreements and needs a better communication strategy “should it need additional funding” for TARP.

This is hardly surprising considering it was just last week that President Obama moved to fill the high-level vacancies at the Treasury. But it’s hard to see why the Treasury wasn’t on top of filling those spots sooner: the pool of available asset managers certainly hasn’t run dry.

The most interesting nugget of information comes later in the report, where the GAO notes TARP recipients have paid the Treasury $2.9 billion in dividends through March 30. Around $2.5 billion of that was paid by banks that gave the government preferred stock in exchange for bailout funds—the exchange otherwise known as the Capital Purchase Program. The Treasury has paid out $199 billion in CPP funds so far, so the government has recouped 1.25 percent of its money in the last six months.

TIME IS RUNNING OUT!

We have an ambitious $350,000 online fundraising goal this month and it's truly crunch time: About 15 percent of our yearly online giving usually comes in during the final week of the year, and in "No Cute Headlines or Manipulative BS," we explain why we simply can't afford to come up short right now.

The bottom line: Corporations and powerful people with deep pockets will never sustain the type of journalism Mother Jones exists to do. And advertising or profit-driven ownership groups will never make time-intensive, in-depth reporting viable.

That's why donations big and small make up 74 percent of our budget this year. There is no backup to keep us going, no alternate revenue source, no secret benefactor. If readers don’t donate, we won’t be here. It's that simple.

And if you can help us out with a donation right now, all online gifts will be matched thanks to an incredibly generous matching gift pledge.

payment methods

TIME IS RUNNING OUT!

We have an ambitious $350,000 online fundraising goal this month and it's truly crunch time: About 15 percent of our yearly online giving usually comes in during the final week of the year, and in "No Cute Headlines or Manipulative BS," we explain why we simply can't afford to come up short right now.

The bottom line: Corporations and powerful people with deep pockets will never sustain the type of journalism Mother Jones exists to do. And advertising or profit-driven ownership groups will never make time-intensive, in-depth reporting viable.

That's why donations big and small make up 74 percent of our budget this year. There is no backup to keep us going, no alternate revenue source, no secret benefactor. If readers don’t donate, we won’t be here. It's that simple.

And if you can help us out with a donation right now, all online gifts will be matched thanks to an incredibly generous matching gift pledge.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate