Office of Financial Stability

Program Disbursement, Repayments, and Cost/Savings

Dollars in Billions (As of 11/30/14)

Cumulative 

Obligated

Cumulative 

Disbursed

Cumulative 

Outstanding 

(Includes 

Realized 

Losses)

Total 

Cumulative 

Income

Total 

Cumulative 

Repayments

Total Estimated 

Lifetime Costs 

(as of 9/30/14)

Bank Support Programs 250 245 1 36 275 -24

Credit Market Programs 19 19 0 5 24 -3

AIG Investment Program (AIG) 68 68 0 1 55 15 * Automotive Industry 

Financing Program 80 80 1 7 69 12

Treasury Housing Programs

Under TARP 38 15 37

Total** $456 $426 $2 $48 $423 $37 

Additional AIG Common Shares 

Held by Treasury 0 0 0 18 18 -18 *

Total for Programs and

Shares** $456 $426 $2 $66 $440 $20 

*If all Treasury AIG Investments are combined, we currently estimate a net gain of $2.3 billion on those shares.

**Totals may not foot due to rounding.

Summary and Explanation of Programs

The Emergency Economic Stabilization Act 

(ESSA) was enacted in October 2008 in 

response to one of the worst financial crises in 

United States history. To address the crisis, 

EESA established the Office of Financial 

Stability (OFS) within the Treasury 

Department to implement the Troubled Asset 

Relief Program (TARP). EESA vested 

authority in the Secretary of the Treasury to 

“purchase, and to make and fund commitments 

to purchase, troubled assets from any financial 

institution, on such terms and conditions as are 

determined by the Secretary.” 

The Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act) 

enacted on July 21, 2010, reduced the TARP 

authority to purchase troubled assets to $475 

billion from an original $700 billion.

As a result of careful stewardship of the 

program and improved financial conditions 

and, the ultimate cost to the taxpayers of 

TARP investments has dropped from the FY 

2009 estimate of $341.0 billion to $37.5

billion as of September 30, 2014 ($20.0 billion 

when Treasury’s additional AIG receipts are 

included). 

In FY 2016, OFS plans to obligate $155

million and use 75 FTEs, a decrease of $15

million and 12 FTEs from the updated

FY 2015 estimates, to fund the management of 

the TARP housing programs and the 

continuing disposition of OFS’s remaining 

investments. The decrease in FTEs and 

outside contracts reflects the continued wind 

down of TARP.

Legislative Proposals

OFS has no legislative proposals for FY 2016.

Description of Performance

Bank Support Programs

Capital Purchase Program (CPP)

The CPP - OFS’s largest program - was 

launched to stabilize and build confidence in 

the financial system by bolstering the capital 

position of viable institutions. OFS ultimately 

provided a total of $204.9 billion in capital to 
707 institutions in 48 states, including more 

than 450 small and community banks and 22 

Community Development Financial 

Institutions (CDFIs). 

As of November 30, 2014, the CPP has 

generated $226.0 billion, $21.1 billion in 

excess of disbursements, in proceeds for 

taxpayers with 35 institutions remaining in the 

program for a total of $558 million in 

investments outstanding.

Targeted Investment Program (TIP)

OFS established the TIP in December 2008 to 

prevent a loss of confidence in critical 

financial institutions, which could impair 

broader financial markets, and undermine the 

overall economy. OFS invested $20 billion 

each in Bank of America and Citigroup under 

the TIP. As of December 31, 2009, the TIP 

was closed. Both Citigroup and Bank of 

America fully redeemed the Government's TIP 

investments of $40 billion plus $3.0 billion in 

dividends and $1.4 billion in warrants during 

2010, which generated $4.4 billion in net 

proceeds for taxpayers. 

Asset Guarantee Program (AGP)

OFS established the AGP which was used in 

conjunction with the TIP to support the value 

of certain assets held by Bank of America and 

Citigroup by agreeing to absorb a portion of 

the losses on those assets. The AGP closed in 

December 2009 without paying any claims and 

has generated $4.1 billion in net proceeds for 

taxpayers. 

Community Development Capital Initiative 

(CDCI)

To help mitigate the adverse impact that the 

financial crisis had on communities 

underserved by traditional banks, OFS

launched CDCI to provide capital to banks, 

thrifts, and credit unions that qualified as 

Community Development Financial 

Institutions (CDFIs) in February 2010. Under 

this program, CDFI banks and thrifts received 

investments of capital with an initial dividend 

or interest rate of two percent, compared to the 

five percent rate offered under the CPP. 

OFS invested a total of $570 million in 84 

CDFIs. As of November 30, 2014, 16

institutions have fully repaid their investment, 

3 institutions have partially repaid their 

investment, and one has been taken into 

receivership, and the program has 

approximately $462 million in investments

outstanding.

Credit Market Programs

Public-Private Investment Program (PPIP)

OFS launched PPIP to support credit market 

functioning and facilitate price discovery in 

the markets for commercial and residential 

mortgage financing. Using TARP funds 

alongside equity capital raised from private 

investors, PPIP was designed to generate a 

significant purchasing power and demand for 

RMBS and CMBS. OFS originally committed 

approximately $22.1 billion of equity and 

loans to the nine Public-Private Investment 

Funds (PPIFs). As of November 30, 2014, all 

of the PPIFs have been effectively wound 

down and OFS has recovered all of its debt 

and equity investments plus an additional $3.9 

billion.

Term Asset-Backed Securities Loan Facility 

(TALF)

The TALF was a joint Federal ReserveTreasury program that was designed to restart 

the asset-backed securities (ABS) markets that 

provide credit to consumers and small 

businesses, which had ground to a virtual 

standstill during the early months of the 

financial crisis. 

OFS originally committed to provide $20.0

billion in the form of subordinated debt to 

TALF, LLC to support a $200.0 billion loan 

portfolio. On January 15, 2013, the 
commitment was eliminated. As of November 

30, 2014, accumulated income earned from 

investments in the TALF, LLC totaled $685 

million.

Small Business Administration (SBA) 7(a) 

Securities Purchase Program 

In March 2010, OFS announced the SBA 7(a) 

Securities Purchase Program to encourage

financial institutions to increase small business 

lending and to ensure that credit flows to 

entrepreneurs and small business owners. 

OFS invested in a total of 31 SBA 7(a) 

securities with a value of approximately $367 

million (excluding purchased accrued interest) 

between March and September 2010. In 

January 2012, OFS concluded winding down 

the program in total, collecting $376 million 

through sales, principal payments, interest 

payments over the life of the program, 

representing cash collections of approximately 

$9 million more than its original investment of 

$367 million.

American International Group, Inc. (AIG) 

Investment Program

During the financial crisis, the federal 

government provided assistance to prevent the 

collapse of AIG. This assistance came from 

the Federal Reserve Bank of New York 

(FRBNY) and Treasury. The consequences of 

AIG failing at that time and in those 

circumstances would have been catastrophic to 

American families, businesses, and the larger 

economy. Therefore, the government took 

action to protect the U.S. financial system. 

The government's overall support for AIG 

peaked at approximately $182 billion. That 

amount included $70 billion that Treasury 

committed through TARP, and $112 billion 

committed by the FRBNY. As of December 

31, 2012, the $182 billion committed to 

stabilize the company had been fully recovered 

plus an additional positive return of $22.7 

billion.

Automotive Industry Financing Program 

(AIFP)

OFS established the AIFP on December 19, 

2008, to help prevent a significant disruption 

to the American automotive industry, which 

would have caused a substantial disruption to 

financial markets and had a negative effect on 

the economy. Under the AIFP, OFS invested a 

total of $79.8 billion in General Motors (GM), 

Chrysler, and their financing affiliates.

OFS provided GM and related suppliers $50.2 

billion in loans which were repaid or 

converted to common stock. OFS has 

recovered a total of $39.7 billion through 

repayments, dividends, interest, and asset sales 

related to its investment in GM. OFS fully

exited its GM investment in December 2013.

OFS committed a total of $12.4 billion to 

Chrysler and Chrysler Financial under TARP. 

In July 2011, OFS fully exited its investment 

in Chrysler, six years ahead of schedule. Of 

the $12.4 billion disbursed to Chrysler under 

TARP, OFS recovered more than $11.1 billion 

for taxpayers through principal repayments, 

interest, and cancelled commitments.

OFS invested $17.2 billion in Ally under 

TARP (including $884 million invested 

through GM). Between November 2013 and 

December 2014, OFS collected approximately 

$12.8 billion on its investment in Ally through 

repurchases, private placements, an initial 

public offering, and underwritten common 

stock sales. OFS has fully liquidated its 

investment in Ally Financial as of December 

24, 2014 and has realized cumulative receipts 

of $19.6 billion, $2.4 billion more than 

invested. 

Treasury Housing Programs Under TARP

OFS established two central programs under 

TARP – the Making Home Affordable (MHA) 

program and the Housing Finance Agency 

Innovation Fund for the Hardest Hit Housing 
Markets (HHF) – to help prevent avoidable 

foreclosures and preserve homeownership.

OFS has also provided support for the Federal 

Housing Administration’s Short Refinance 

Program to assist borrowers who are current 

on their mortgage but owe more than their 

home is worth, in refinancing into an FHAinsured loan.

Making Home Affordable Program (MHA)

MHA includes sub programs that assist 

borrowers in modifying first and second 

mortgages, including benefits for unemployed 

homeowners, as well as modification 

alternatives. Through November 30, 2014, 

there were nearly 2.2 million homeowner 

assistance actions granted through MHA. 

Funds are paid out over the length of the 

modifications, and as of November 30, 2014, 

OFS disbursed $9.7 billion out of a possible 

$29.8 billion of incentive fees under MHA.

Housing Finance Agency (HFA) Hardest-Hit 

Fund

The HFA Hardest-Hit Fund was implemented 

in FY 2010 and provides targeted aid to 

homeowners in the states hit hardest by the 

housing market downturn and unemployment. 

Eighteen states and the District of Columbia 

have developed custom programs targeted to 

address the specific needs and economic 

conditions of their area. As of November 30, 

2014, OFS disbursed $4.8 billion out of a 

possible $7.6 billion under the HFA HardestHit Fund.