By Jay Heflin - 06/11/10 06:34 PM EDT
The Treasury Department on Friday announced that repayments to the Troubled Asset Relief Program (TARP) have for the first time surpassed the total amount of TARP funds that remain outstanding.
Today's report to Congress shows that through the end of May, TARP repayments reached $194 billion. That figure exceeds outstanding TARP funds that total $190 billion.
"TARP repayments have continued to exceed expectations, substantially reducing the projected cost of this program to taxpayers," said Herb Allison, assistant secretary for financial stability, in prepared remarks. "This milestone is further evidence that TARP is achieving its intended objectives: stabilizing our financial system and laying the groundwork for economic recovery."
Treasury's sale of 1.5 billion shares of Citigroup stock that provided gross proceeds of $6.18 billion helped the Department surpass the outstanding balance. The Treasury expects repayments to continue to exceed outstanding amounts.