Most of the outstanding TARP money is in the form of
equity ownership in 410
institutions as of June 30, 2012 (325 banks in CPP, 82 banks and credit unions in
CDCI, plus AIG,
GM, and Ally Financial). Treasury (and therefore the taxpayer)
remains a shareholder in companies that have not repaid the Government.
Treasury’s equity ownership is largely in two forms — common and preferred stock
...
In return for a total of $49.5 billion in loans to GM, Treasury received $6.7
billion in debt in GM (which was subsequently repaid), in addition to $2.1 billion
in preferred stock and a 60.8% common equity stake.84 As of June 30, 2012,
Treasury has an $849.2 million claim against Old GM’s bankruptcy, a bankruptcy
that recently terminated.85 Treasury does not expect any significant additional proceeds
from this claim.86 On December 2, 2010, GM closed an initial public offering
(“IPO”
in which Treasury sold a portion of its ownership stake for $18.1 billion
in gross proceeds, reducing its ownership percentage to 33.3%.87 On December
15, 2010, GM repurchased the $2.1 billion in preferred stock from Treasury. On
January 31, 2011, Treasury’s ownership in GM was diluted from 33.3% to 32% as
a result of GM contributing 61 million of its common shares to fund GM’s hourly
and salaried pension plans.88 As of June 30, 2012, Treasury had received $22.5
billion in principal repayments, proceeds from preferred stock redemptions, and
proceeds from the sale of common stock from GM, including approximately $136.6
million in repayments related to its right to recover proceeds from Old GM. ...
Treasury invested a total of $17.2 billion in Ally Financial. On December
30, 2010, Treasury’s investment was restructured to provide for a 73.8% common
equity stake, $2.7 billion in TRUPS (including amounts received in warrants
that were immediately converted into additional securities), and $5.9 billion
in mandatorily convertible preferred shares.94 Treasury sold the $2.7 billion in
TRUPS on March 2, 2011.95 On March 31, 2011, Ally Financial announced that
it had filed a registration statement with the Securities and Exchange Commission
(“SEC”
for a proposed IPO of common stock owned by Treasury. On a number of
subsequent occasions, Ally Financial disclosed additional details about its proposed
IPO in amended registration statements filed with the SEC. Concurrent with the
proposed IPO, Treasury plans to convert $2.9 billion of its existing $5.9 billion of
mandatorily convertible preferred shares (“MCP”
into common stock.96 Treasury
will exchange the remaining $3 billion of its MCP into so-called tangible equity
units, a type of preferred stock, and will offer a portion of these tangible equity
units alongside the proposed common equity offering.
