Treasury Report Says Small Banks Not Repaying TARP

WASHINGTON, DC-A new report by the Treasury Department shows what other earlier data has suggested: small banks are in trouble. This particular data point comes from a May report to Congress on the status of TARP repayments. It found that 101 bailed-out banks that participated in the program have missed paying the government a dividend. Nearly all of these banks are small institutions. That 101 figure is a 25% increase from February.

On the whole, the program is doing well, according to the report, which also said that the total amount repaid by banks to the program has surpassed the amount of outstanding debt for the first time. In May, total repayments reached $194 billion, while the outstanding debt is $190 billion. There are some caveats to this milestone, however. Namely, the outstanding debt amount does not include $106 billion that has been committed to institutions but has yet to be paid out. With that added to the final tally, the outstanding debt becomes $296 billion.