Jan 13 - The U.S. Treasury confirmed on Tuesday that 43
banks received $14.8 billion from the government's $700 billion
financial rescue fund on Jan. 9, bringing total disbursements
to date to $271.7 billion.
The Treasury's latest transaction report includes an additional $10 billion for Bank of America released upon completion of the bank's acquisition of Merrill Lynch.
The Treasury has now made investments in 257 U.S. banks, but faces requests from thousands of other institutions, a senior Treasury official said on Tuesday.
President-elect Barack Obama is waiting for Congress to respond to his request for the second $350 billion tranche in funding for the Troubled Asset Relief Program, made on his behalf by the departing Bush administration.
Congress approved the program in early October, but it granted access to only half of the funds. With the notification, lawmakers now have 15 days during which they could move to block access to the funds.
Following is an outline of what has been spent or pledged from the funds the Treasury can currently tap:
-- $250 billion has been pledged for purchases of senior preferred shares and warrants in banks and thrifts.
In a report on transactions through Jan. 9, the Treasury said it had completed equity purchases totaling $192.3 billion under this portion of the program in 257 institutions.
-- $40 billion investment in troubled insurer American International Group.
-- $20 billion investment in Citigroup.
-- $19.4 billion to prop up the U.S. auto industry. The amount includes $10.4 billion in loans to General Motors Corp , including $1 billion for GM to help its financing affiliate GMAC reorganize as a bank holding company; a $4 billion loan for Chrysler LLC; and a $5 billion direct investment in GMAC. GM could qualify for a further $4 billion loan in March, but that would have to come from the final $350 billion tranche of the financial rescue fund.
-- $5 billion pledged to cover potential losses on a $306 billion portfolio of Citigroup mortgage-related assets.
-- $20 billion pledged to cover potential losses for a Federal Reserve program aimed at improving consumer access to credit.
(For details on money already disbursed and recipients, see: http://www.treas.gov/initiatives/eesa/transactions.shtml)
(Compiled by Reuters Washington bureau; editing by Gary Crosse) Keywords: FINANCIAL/BAILOUT (e-mail: david.lawder@thomsonreuters.com; +1-202-898-8395; Reuters Messaging: david.lawder.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Treasury's latest transaction report includes an additional $10 billion for Bank of America released upon completion of the bank's acquisition of Merrill Lynch.
The Treasury has now made investments in 257 U.S. banks, but faces requests from thousands of other institutions, a senior Treasury official said on Tuesday.
President-elect Barack Obama is waiting for Congress to respond to his request for the second $350 billion tranche in funding for the Troubled Asset Relief Program, made on his behalf by the departing Bush administration.
Congress approved the program in early October, but it granted access to only half of the funds. With the notification, lawmakers now have 15 days during which they could move to block access to the funds.
Following is an outline of what has been spent or pledged from the funds the Treasury can currently tap:
-- $250 billion has been pledged for purchases of senior preferred shares and warrants in banks and thrifts.
In a report on transactions through Jan. 9, the Treasury said it had completed equity purchases totaling $192.3 billion under this portion of the program in 257 institutions.
-- $40 billion investment in troubled insurer American International Group.
-- $20 billion investment in Citigroup.
-- $19.4 billion to prop up the U.S. auto industry. The amount includes $10.4 billion in loans to General Motors Corp , including $1 billion for GM to help its financing affiliate GMAC reorganize as a bank holding company; a $4 billion loan for Chrysler LLC; and a $5 billion direct investment in GMAC. GM could qualify for a further $4 billion loan in March, but that would have to come from the final $350 billion tranche of the financial rescue fund.
-- $5 billion pledged to cover potential losses on a $306 billion portfolio of Citigroup mortgage-related assets.
-- $20 billion pledged to cover potential losses for a Federal Reserve program aimed at improving consumer access to credit.
(For details on money already disbursed and recipients, see: http://www.treas.gov/initiatives/eesa/transactions.shtml)
(Compiled by Reuters Washington bureau; editing by Gary Crosse) Keywords: FINANCIAL/BAILOUT (e-mail: david.lawder@thomsonreuters.com; +1-202-898-8395; Reuters Messaging: david.lawder.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.