Office of Financial Stability

Program Summary

Dollars in Billions

Cumulative 

Obligated 

(as of 

11/30/2019)

Cumulative 

Disbursed 

(as of 

11/30/2019)

Cumulative 

Outstanding 

(as of 

11/30/2019)

Total 

Cumulative 

Income (as of 

11/30/2019)

Total Cash 

Back (as of 

11/30/2019)

Total 

Estimated Life 

Costs (as of 

11/30/2019)

Bank Support Programs 250.5 245.1 0.0 35.7 275.6 (24.3)

Credit Market Programs 19.1 19.1 0.0 4.5 23.6 (3.3)

AIG Investment Program (AIG) 67.8 67.8 0.0 1.0 55.3 * 15.2 

Automotive Industry Financing 

Program 79.7 79.7 0.0 7.4 70.6 12.1 

Treasury Housing Programs 33.1 30.3 0.0 32.2

Total 450.2 442.0 0.1 48.6 425.1 31.9

Additional AIG Common Shares 

Held by Treasury 0.0 0.0 0.0 17.6 17.6 * (17.6)

Total for Programs and Shares 450.2 442.0 0.1 66.2 442.7 14.3

*If all Treasury AIG Investments are combined, Treasury currently estimates a net gain of nearly $2.4 billion on those shares.

Administrative Account Summary

Dollars in thousands

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Actual Estimated Estimated Change % Change

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Obligations

Tarp Administrative Account 57,743 47,240 42,154 (5,086) -10.77%

Total Obligations $57,743 $47,240 $42,154 ($5,086) -10.77%

FTE 22 16 14 -2 -12.50%

Summary and Explanation of Programs

A central part of the response to the 2008 financial crisis was the implementation of the Troubled 

Asset Relief Program (TARP), which was established in the fall of 2008 under the Emergency 

Economic Stabilization Act of 2008 (EESA) (P.L. 110-343) within the Office of Domestic 

Finance at the U.S. Department of the Treasury (Treasury). TARP was created to restore the 

liquidity and stability of the financial system, and it is administered by the Office of Financial 

Stability (OFS). Since late 2010, OFS has made significant progress in winding down TARP 

investment programs and in recovering OFS’s outstanding investments. OFS’s continued winddown efforts align with Treasury’s Strategic Goal to transform government-wide financial 

stewardship.

OFS continues to operate a housing program to help homeowners prevent avoidable 

foreclosures. However, in 2016, OFS began the wind-down of the largest TARP housing 

program, the Marking Home Affordable Program, pursuant to the Consolidated Appropriations 

Act, 2016. As of November 30, 2019, OFS has recovered more than 96 percent of the 

$442.0 billion in total program funds disbursed under TARP, as well as an additional 

$17.6 billion from Treasury’s equity in AIG. When all of Treasury’s AIG investments are 

included, the amount recovered is greater than the funds disbursed by nearly $0.7 billion. 
In FY 2021, OFS plans to obligate just over $42 million and use no more than 14 Full-Time 

Equivalent (FTE) employees, a reduction of over 10 percent and 12 percent respectively, from 

the current FY 2020 estimates, to fund the management of the TARP housing programs and the 

continuing disposition of OFS’s remaining investments. 

Legislative Proposals

Treasury is seeking certain legislative changes related to OFS and TARP to reduce the frequency 

and necessity of several statutory reporting requirements that were established when TARP was 

created. OFS continues to wind-down operations and is focused on reducing costs by 

eliminating duplicative internal operations and increasing its reliance on shared services 

provided by Departmental Offices (DO) and Fiscal Services. As OFS continues to wind-down, it 

will become increasingly more efficient to be audited as part of the Treasury-wide financial 

statement audit under Treasury’s Office of the Inspector General (OIG). OFS, like several other 

Treasury Offices, is substantially cross-serviced by other organizations within Treasury, 

including the Bureau of the Fiscal Service, the Departmental Offices (DO) Office of Budget and 

Travel, and the Office of the Deputy Chief Financial Officer. All of these offices are under the 

purview of the Treasury–wide financial statement audit. As an example, GAO spends a 

significant amount of resources and time testing OFS’s administrative contracts with DO that are 

audited by Treasury’s OIG. Additionally, GAO spends significant time testing the OFS financial 

reporting process, which is also under scope of the Treasury-wide financial statement audit. OFS 

estimates that enacting the following legislative proposals would result in $2-4 million in annual 

savings in contracting costs and GAO reimbursements, and would reduce OFS’s workload by 

two FTEs. The remaining statutory requirements will continue to provide sufficient transparency 

during the wind-down of TARP.

Replace OFS’s stand-alone financial statements audit performed by GAO: Repeal OFS’s 

stand-alone financial statements and the stand-alone financial statements audit performed by 

GAO (12 USC 5226(b) and (c) (2). Treasury’s OIG will audit the financial operations and 

internal controls of OFS as part of the Treasury-wide audit. Therefore, OFS would be subject to 

the same audit rigor as DO. This update would be a more efficient use of taxpayer funds and 

more accurately reflect current materiality and activity of OFS. Additionally, move the 

following authorities in EESA related to OFS oversight (5226, 5227, and 5233) under the 

purview of Treasury’s OIG.

Sunset the Financial Stability Oversight Board (FinSOB): This interagency group meets 

monthly and reports quarterly. The group reviews OFS’s program formulation and monitors 

program performance. The need for the board’s oversight and reporting has diminished as no 

new OFS programs are being implemented, all major investments have been disposed, and the 

housing programs are in wind-down.

Change frequency of the Section 105(a) report (“Congressional Monthly”): This 

performance report remains generally static from month to month. With most programs having 

closed, less frequent (quarterly) reporting is warranted.

Eliminate the Administrative Activity Report (“Obligation Report”): This quarterly report 

provides data on administrative obligations object type and is required under the annual Treasury 
appropriations bill. OFS has been prudent in the use of administrative funds and has been 

reducing obligations by approximately 20 percent per year over the last five years. 

Description of Performance

Bank Support Programs

Capital Purchase Program (CPP)

OFS created CPP, its largest program, in October 2008. OFS provided a total of $204.9 billion 

in capital to 707 institutions in 48 states. During FY 2019, OFS continued to wind down 

remaining CPP investments. As of November 30, 2019, CPP has generated $226.8 billion in 

recoveries for taxpayers, with two institutions remaining in the program, for a total of $17 

million in investments outstanding.

Community Development Capital Initiative (CDCI)

OFS created CDCI on February 3, 2010, to provide investments of capital to certified 

Community Development Financial Institutions (CDFI) banks, thrifts, and credit unions. OFS 

invested $570 million in 84 CDFIs, of which 28 institutions converted $363 million (including 

warrants) from CPP to CDCI. As of November 30, 2019, CDCI has generated $587 million in 

recoveries for taxpayers with four institutions remaining in the program, for a total of 

$22 million in investments outstanding. 

Housing Programs 

OFS established several TARP housing programs, assisting millions of homeowners and 

introducing reforms for the mortgage servicing industry to facilitate mortgage modifications.

Making Home Affordable Program (MHA)

In 2009, OFS launched MHA to help homeowners prevent avoidable foreclosures and strengthen 

the housing market. The cornerstone of MHA is the Home Affordable Modification Program 

(HAMP), which provides eligible homeowners the opportunity to reduce their monthly mortgage 

payments. In accordance with provisions of the Act, MHA terminated on December 31, 2016, 

except with respect to certain applications made before such date. MHA servicers were required 

to design policies and procedures to reasonably ensure that all MHA transactions were 

completed by December 1, 2017. As of November 30, 2019, OFS had disbursed $20.8 billion 

out of a possible $23.5 billion under MHA.

Housing Finance Agency (HFA) Hardest Hit (HHF) Fund

Established in 2010 to provide aid to homeowners in states hit hardest by the economic and 

housing market downturn. The $7.6 billion initiative encompassed 18 states and the District of 

Columbia (D.C.). In December 2015, the Act granted Treasury authority to make an additional 

$2.0 billion in commitments through the HHF. As of November 30, 2019, OFS had disbursed 

$9.4 billion out of a possible $9.6 billion under HHF.
Federal Housing Administration (FHA) - Short Refinance Program

OFS continues to support the FHA Short Refinance Program, which was intended to assist 

borrowers with negative equity. The program has seen limited participation. As such, OFS has 

incrementally reduced the LOC Facility supporting this program from an initial $8.0 billion to 

$27 million in FY 2017, which matches OFS’s maximum liability for loans covered by the 

program as of December 31, 2016, when the program ended for new refinances. As of 

November 30, 2018, the revised lifetime cost estimate for the program was $14 million for 

outstanding refinanced loans.

Other Programs

Automotive Industry Financing Program (AIFP) 

OFS fully wound down AIFP during FY 2015, selling its remaining stake in Ally Financial. 

OFS disbursed $79.7 billion in loans and equity investments to the automotive industry through 

the AIFP. As of November 30, 2019, OFS has collected $70.6 billion through sales, repayments, 

dividends, interest, recoveries, and other income. Recoveries from the bankruptcy liquidation of 

Old Chrysler and Old GM remain possible. 

All other TARP programs closed prior to FY 2016, including the Targeted Investment Program, 

Asset Guarantee Program, Public-Private Investment Program, Term Asset-Backed Securities 

Loan Facility, Small Business Administration 7(a) Securities Purchase Program, and American 

International Group, Inc. Investment Program.