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The Wall Street Journal reports that the Treasury has made its last investment in the largest program of the bank bailouts. After passing out $205 billion to 707 banks in the Capital Purchase Program (CPP), Tim Geithner and Company cannot find any more banks willing to take the government's heavily subsidized capital.

I’m glad to see that new investments by the Capital Purchase Program (CPP) have come to an end. My solo and joint research says that the preferred stock that taxpayers bought would do little to encourage banks to lend. Further, the monies were spread to broadly to too many institutions that posed no systemic risk. Giving Capital Purchase Program (CPP) funds to over seven hundred institutions meant that taxpayers were exposed to more risks than they should have been.

My non-technical paper "TARP Turkeys: The bank investments that did not pay dividends in November 2009" found that fifty-six Capital Purchase Program (CPP) recipients failed to pay dividends or interest on time. We will have more trouble extracting ourselves from these investments because the U.S. Treasury in the current and previous administration passed out preferred stock and subordinated debt to too many institutions.

Source: author

Source: "TARP Turkeys: The bank investments that did not pay dividends in November 2009"

The vertical axis on left and the bar graph tracks the number of banks skipping dividends and interest. The line graph and the vertical axis measure the total taxpayer funds in millions invested in the banks skipping dividend or interest payments in May, August, and November 2009.

Disclosure: I only have long positions in broad-based index funds. I do not have long or short positions in individual securities of the companies mentioned.