Ethisphere TARP Index Sees Largest Drop since Its Creation
Ethisphere TARP Index Sees Largest Drop since Its Creation
Index Drops $20.7 Billion; Down $123 Billion Overall
* Monday March 9, 2009, 11:43 am EDT
NEW YORK--(BUSINESS WIRE)--According to the Ethisphere TARP Index, when markets closed on Friday, March 6, 2009, the government’s Troubled Asset Relief Program (TARP) investment was down approximately $123 billion out of the original investment principal of $306.1 billion. Created by the Ethisphere Institute, a non-partisan research think tank, the Ethisphere TARP Index tracks the U.S. Federal Government’s return on its investments under the capital purchase portion of TARP. To date, each taxpaying household has lost $1,082 of its investment.
“This past week marked the largest downward slide of the Ethisphere TARP Index since its creation, losing just under $21 billion in value. Ethisphere estimates that more than a third of the TARP companies have lost at least 25 percent of their value to date," said Stefan Linssen, Managing Editor of Ethisphere Magazine and one of the lead research analysts behind the Ethisphere TARP Index. “More rumors surfaced that Bank of America would take the path of Citigroup and have the Treasury convert a substantial amount of its preferred shares to common stock, though CEO Ken Lewis continues to adamantly deny that the bank will need any more infusion of capital of any kind. Aside from Citigroup, Ethisphere estimates that the rest of the calamity investments were relatively stable this past week.”
Results as of the Week Ended March 6, 2009
The largest estimated losses to date under TARP are:
1. Citigroup (C) – with an estimated loss of $35.9 billion
2. Wells Fargo (WFC) – with an estimated loss of $12.5 billion
3. Bank of America (BAC) – with an estimated loss of $11.3 billion
4. JP Morgan (JPM) – with an estimated loss of $6.3 billion
The largest estimated gains to date under TARP are:
1. Great Southern Bancorp (GSBC) – with an estimated gain of $11.1 million
2. Community Bankers Trust Corp (BTC) – with an estimated gain of $2.0 million
3. First Citizens Banc Corp (FCZA) – with an estimated gain of $1.5 million
Weekly reports detailing performance and drivers will be published at
Ethisphere TARP Index Report - March 6 - 2009 | Ethisphere? Institute. Through the Index, Ethisphere hopes to encourage participating companies to promote transparency, accountability and ethical business practices related to the TARP funds.
Methodology
In addition to the aggregate investment basis costs and current valuation of investments under TARP’s capital purchase program, the Ethisphere TARP Index also tracks individual TARP investments. The methodology is based on the cumulative total of public and private companies’ value, as well as interest set to have been received by The U.S. Treasury. In order to calculate the value of private companies receiving TARP funds, Ethisphere averaged together the percent change in the Nasdaq Banking Index and S&P Bank Index, and applied that percent change to the original investment in private companies by Treasury. For more specific methodology, see the TARP report online at
Ethisphere? Institute.
About Ethisphere Institute
The research-based Ethisphere Institute is a leading international think-tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability. The Institute’s associated membership group, the Ethisphere Council, is a forum for business ethics that includes over 200 leading corporations, universities and institutions. The Ethisphere Council is dedicated to the development and advancement of individuals on its membership council through increased efficiency, innovation, tools, mentoring, advice, and unique career opportunities. Ethisphere Magazine, which publishes the globally recognized World’s Most Ethical Companies Ranking™, is the quarterly publication of the Institute. More information on the Ethisphere Institute, including ranking projects and membership, can be found at
Ethisphere? Institute.
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