Business & Finance
Business and Finance
Business and Finance
Tue, October 5, 2010
Mon, October 4, 2010 Barclays, Bank of America, Wells Fargo, Goldman Sachs Group and Citigroup
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Barclays (NYSE: [ BCS ]), Bank of America Corp. (NYSE: [ BAC ]), Wells Fargo & Co. (NYSE: [ WFC ]), Goldman Sachs Group Inc. (NYSE: [ GS ]) and Citigroup Inc. (NYSE: [ C ]).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=4579 ]
Here are highlights from Fridaya™s Analyst Blog:
TARP Expires, Repayment in Limbo
After two years of functioning, the U.S. Treasurya™s $700 billion Troubled Asset Relief Program (TARP) is set to expire on Sunday. However, many of the banks still did not repay the funds they had taken as part of their participation in the program.
Following the collapse of Lehman Brothers in September 2008, which was acquired by Barclays (NYSE: [ BCS ]), the U.S. government has injected billions of dollars through TARP into several national financial institutions to stabilize the financial system.
The TARP was created primarily to rescue the nationa™s financial industry. The injected money was expected to help stabilize all the banks and in course of time facilitate them to raise fresh funds to repay the government. Though the fund was initially injected into large financial institutions, it gradually expanded to small institutions and a number of other programs including mortgage modification and foreclosures prevention.
Out of the $247 billion given to the banks, the majority has come back from the repayments of the nationa™s healthy banks. Also, taxpayers have received decent returns on many of their financial-sector investments. Repayments under the TARP have generated about 17% annualized return from stock-warrant repurchases.
Major institutions in the financial market that have repaid the TARP loan in full include Bank of America Corp. (NYSE: [ BAC ]), Wells Fargo & Co. (NYSE: [ WFC ]), Goldman Sachs Group Inc. (NYSE: [ GS ]) and Citigroup Inc. (NYSE: [ C ]). Also, the Treasury has almost completed auctioning stock warrants it had acquired from the banks that received a significant portion of taxpayersa™ money and have fully repaid it.
With the expiration of the TARP, the Treasury will now be restricted to the taxpayersa™ money to help homeowners or for injecting into the banking system.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=5514 ].
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: [ http://at.zacks.com/?id=5516 ]
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at [ http://at.zacks.com/?id=4580 ].
Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.
Follow us on Twitter: [ http://twitter.com/zacksresearch ]
Join us on Facebook: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ]
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
