Bloomberg: 8 TARP recipients blow $845 million on stadium deals

Citigroup, Inc., targeted by lawmakers for paying $400 million to put its name on the New York Mets’ new ballpark, and seven other banks that received government funds may face questioning by Congress for spending $845 million on stadium sponsorships.

Bank of America Corp., which like Citigroup received $45 billion in government funds, is paying $140 million to have its name on football’s Carolina Panthers stadium. JPMorgan Chase & Co., which received $25 billion from the Troubled Asset Relief Program, is spending $66 million for branding Chase Field in Phoenix, home to baseball’s Arizona Diamondbacks.

The eight banks received a total of $153.4 billion from the $700 billion U.S. bailout and are spending a combined $845 million for naming rights. U.S. banks have had $745 billion in losses and writedowns since the subprime mortgage crisis began in 2007.

~ Bloomberg, "Citigroup, Seven U.S. Banks Spend on Stadium Deals ," February 5, 2009

Neel Kashkari on managing the TARP

[The government is investing in] very high quality institutions of all sizes.

We're not day traders, and we're not looking for a return tomorrow. Over time, we believe the taxpayers will be protected and have a return on their investment.

~ Neel Kashkari, the director of Treasury's Office of Financial Stability, which oversees the $700 billion financial rescue fund, "U.S. taxpayers will see a return from bailout," AP, December 5, 2008

(The Treasury Department has received preferred stock and warrants to buy additional shares in return for the $150 billion it has invested so far in 52 banks, including Bank of America Corp, Citigroup Inc and JPMorgan Chase & Co Inc. But an Associated Press analysis yesterday showed that the warrants to purchase about 1.2 billion additional shares in those banks have so far lost about one-third of their value.)

Paul Kasriel on the Troubled Asset Relief Program (TARP)

There is a lack of transparency here and, given that the Fed is taking on a huge amount of credit risk now, it would seem to me as a taxpayer there should be more transparency.

~ Paul Kasriel, chief economist, Northern Trust, "U.S. Pledges Top $7.7 Trillion to Ease Frozen Credit ," Bloomberg.com, November 24, 2008

Ben Bernanke on the Troubled Asset Relief Program (TARP)

Some have asked us to reveal the names of the banks that are borrowing, how much they are borrowing, what collateral they are posting. We think that’s counterproductive.

~ Ben Bernanke, Federal Reserve chairman, talking before the House Financial Services Committee, November 18, 2008

(Quote sited in "U.S. Pledges Top $7.7 Trillion to Ease Frozen Credit ," Bloomberg.com, November 24, 2008.)