Remaining TARP Banks Have Limited Options to Exit Program
August 20, 2015
A handful of banks that remain in the Troubled Asset Relief Program appear to have very few options for exiting the nearly seven-year-old initiative.
The Treasury Department still holds securities in 21 banks, compared to 707 when the program was at its height. The ranks have shrunk as banks exited the program or had their shares auctioned off to private investors.
Other than the $13 billion-asset First BanCorp in San Juan, Puerto Rico, all remaining participants are smaller community banks, and many of them are still struggling to recover from the financial crisis. Eighteen Tarp banks are behind on anywhere from 10 to 26 dividend payments.