March 11, 2011 |
A federal grand jury has accused an Orange County couple of stealing $130 million from a consortium of banks, including Bank of America, by inflating the value of their importing company's assets. Thomas Chia Fu and his wife, Cheri L. Shyu, were arrested Thursday at their home in Newport Coast. The couple owned an Anaheim company called Galleria USA Inc., which imported home decor items from China and sold them in the United States. They defrauded the banks by exaggerating ?
March 9, 2011 |
The Treasury Department has recovered 70% of the money distributed under the $700-billion bailout fund after insurance giant American International Group Inc. paid back $6.9 billion of the taxpayer bailout it received. The once financially ailing AIG made the repayment Tuesday after selling its holdings in MetLife last week. About $59 billion from the Troubled Asset Relief Program still is invested in AIG. Altogether, AIG received about $125 billion in a complex, multistep bailout from the Treasury and the Federal Reserve starting in the fall of 2008.
February 28, 2011 |
Almost three years after a series of government bailouts began, what many feared would be a deep black hole for taxpayer money isn't looking nearly so dark. The brighter picture is highlighted by the outlook for the bailouts' centerpiece ? the $700-billion Troubled Asset Relief Program. "It's turning out to cost one heck of a lot less than what we all thought at the beginning," said Ted Kaufman, a former U.S. senator from Delaware who heads the congressionally appointed panel overseeing TARP.
February 15, 2011 |
Saying the work was largely done, Neil M. Barofsky, the outspoken special inspector general and top watchdog of the $700-billion financial bailout fund, has submitted his resignation to President Obama. In his letter Monday, Barofsky said that he had accomplished his top goals and that it was time for him to leave government service. The goals included ensuring transparency in how the Troubled Asset Relief Program was run and cracking down on people trying to fraudulently profit from the program.
January 14, 2011 |
Treasury Secretary Timothy F. Geithner says the government "remains optimistic that taxpayers will get back every dollar of their investment in AIG. " Bailed-out insurance giant American International Group Inc. moved closer to repaying the government for its rescue by completing a stock-conversion deal with the Treasury Department on Friday ? a key to unwinding the federal stake in the company. Treasury converted the preferred shares in AIG it received as part of the complex bailout into 1.655 billion shares of common stock, increasing the government's ownership stake to 92% from 80%. The department plans to sell the shares over time to recoup its investment, now estimated at $68 billion, and end taxpayer support of the company.
December 31, 2010 |
Pasadena's East West Bancorp Inc. has repaid its more than $300-million slice of bailout funds from the U.S. Treasury, but several smaller Southern California banks are struggling even to make dividend payments on their investments from Uncle Sam. East West, the largest bank focused on the Chinese American market, said Wednesday that it used available cash to return the $306.5 million in preferred stock that the Treasury Department had purchased at the height of the financial crisis, along with a final quarterly dividend of $1.8 million.
December 8, 2010 |
Taxpayers earned a $12-billion profit on the U.S. Treasury's $45-billion bailout of Citigroup Inc., the government reported as it sold the last of its stock in the banking giant. The Treasury said late Monday that it sold 2.4 billion Citigroup shares to private investors at $4.35 apiece, raising $10.5 billion. That brought to $57 billion the government's total proceeds from the bank, including previous sales of Citigroup stock as well as dividend and interest income that the bank paid the government.
December 3, 2010 |
The Treasury Department said Thursday that it had received an additional $1.8 billion from the General Motors Co. stock offering last month, bringing the total haul to $13.5 billion to help pay down the automaker's taxpayer-funded bailout. The additional money came from about 54 million GM shares owned by the Treasury that the underwriters of GM's initial public offering had the option to purchase within 30 days of the Nov. 23 offering. The sale of those shares three days later added to the $11.7 billion the government received from its initial sale of shares and cut the government's ownership stake nearly in half, to 33.3%, the Treasury said.
November 30, 2010 |
The projected cost of the $700-billion financial bailout fund ? initially feared to be a huge hit to taxpayers ? continues to drop, with the nonpartisan Congressional Budget Office estimating Monday that losses would amount to just $25 billion. That's a sharp drop from the CBO's last estimate, in August, of a $66-billion loss for the Troubled Asset Relief Program, known as TARP. Going back to March, the budget office estimated that the program would cost taxpayers $109 billion. The new, more optimistic forecast largely reflects money the Treasury Department has received as banks have repaid their loans and repurchased stock warrants.
October 5, 2010 |
The Obama administration on Tuesday estimated that the $700-billion financial bailout fund would cost taxpayers $51 billion ? and possibly 43% less if the government succeeds in recouping the money it put into insurer American International Group Inc. In a report issued two days after the formal end of the Troubled Asset Relief Program, the Treasury Department said that it still expected to incur "substantial losses" from the separate government seizure...