Bank of America repays $45 bn of federal money

Bank of America repays $45 bn of federal money

Washington: The Bank of America has repaid the US government the entire bailout money of $45 billion.

The Department of the Treasury announced on Wednesday that it has received full repayment on its Troubled Asset Relief Programme (TARP) investments in Bank of America in the sum of $45 billion.

With this the federal exchequer has so far received a total of $116 billion of its bailout money.

“Treasury now estimates that total bank repayments could reach up to $175 billion by the end of 2010, cutting total taxpayer exposure to the banks by almost three-quarters from the peak," the statement said.

The department said it estimates that every one of its programmes aimed at stabilising the banking system, the Capital Purchase Programme, the Targeted Investment Programme, the Asset Guarantee Programme, and the Consumer and Business Lending Initiative — will earn a profit thanks to dividends, interest, early repayments, and the sale of warrants.

Total bank investments of $245 billion in FY09 that were initially forecast to cost $76 billion are now projected to bring a profit of $19 billion.

“Taxpayers have already received about $15 billion in revenue through interest, dividends, and the sale of warrants, and that profit could be considerably higher as Treasury sells additional warrants in the weeks ahead," it said.