WASHINGTON ( TheStreet) -- The list of TARP deadbeats has been growing in size and scope, and proposed changes in capital requirements could put even more institutions at risk of falling behind on their bailout tabs with Uncle Sam.
The U.S. has tallied $2.6 billion worth of failed TARP investments to date, and lost part of its investments in four other banks in exchange for private recapitalization. Initially worth $911 million, the Treasury Department accepted haircuts ranging from roughly 17 cents on the dollar to 38 cents on the dollar, to woo private equity investments for Sterling Financial (STSA), Pacific Capital (PCBC) and Hampton Roads (HMPR) , and secure a buyout deal for South Financial Group (TSFG).
The government lost $216 million on the
Perhaps more troubling is a growing list of delinquent banks. That list now stands at 81 firms that represent $2.2 billion in taxpayer dollars. Those numbers seems sure to grow when new capital rules are implemented, since the financial reform bill may not allow banks to use
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