How Much Our Government Has Lost on TARP

Posted by: Chris Palmeri on February 23, 2009

Wow. You think your personal portfolio has taken a hit, check out how much the government has lost so far on the Troubled Asset Recovery Program (TARP). According to an index put together by a corporate ethics advocacy group called Ethisphere, we’ve lost $107.7 billion or 55% of our money so far. This amounts to a loss of $768 for each taxpaying household.

Here are the results through February 20, 2009

Biggest losers

1. Citigroup (C) – loss of $21.8 billion or 87.2 percent
2. Bank of America (BAC) – loss of $20.0 billion or 79.9 percent
3. Wells Fargo (WFC) – $16.3 billion or 65.2 percent
4. JP Morgan (JPM) – loss of $12.5 billion or 50.0 percent

Biggest gainers

1. Morgan Stanley (MS) – gain of $699.4 million or 7.0 percent
2. BB&T Corporation (MSDXP) – gain of $63.9 million or 2.0 percent
3. 1st Source Corporation (SRCE) – gain of $17.5 million or 15.7 percent

Top performers on a relative basis include:
1. Great Southern Bancorp (GSBC) – gain of 27.1 percent or $15.7 million
2. Monarch Community Bancorp (MCBF) – gain of 17.7 percent or $1.2 million
3. 1st Source Corporation (SRCE) – gain of 15.7 percent or $17.5 million

Worst performers on an absolute basis include:
1. US Bancorp (USB) – loss of $4.1 billion or 62.6 percent
2. SunTrust Banks (STI) – loss of $3.8 billion or 78.8 percent
3. PNC Financial Services (PNC) – loss of $3.8 billion or 50.2 percent

Worst performers on a relative basis include:
1. Huntington Bancshares (HBAN) – loss of 85.1 percent or $1.2 billion
2. Webster Financial Corp (WBS) – loss of 80.5 percent or $321.9 million
3. Marshall & Ilsley Corporation (MI) – loss of 79.4 percent or $1.4 billion

Reader Comments

Robert NYC

February 23, 2009 4:46 PM

ahhh come on - thats nothing compared to the $700 billion of that so called 'stimulus plan' that Obama wasted on welfare programs. Money is free these days - haven't you heard?

ANDY

February 23, 2009 9:47 PM

The government has not lost any money until the bank's are liquidated...the government received preferred shares which they receive a dividend on. This post is misleading and inaccurate.

Just Visiting

February 28, 2009 1:22 AM

Andy is right. The government's own form of off-balance-sheet financing means it has not marked-to-market yet. When it does, the losses will be trillions.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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