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Troubled Asset Relief Program
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This article is about the Treasury fund. For the legislative bill and subsequent law, see Public Law 110-343. For the legislative history and the events leading to the law, see Emergency Economic Stabilization Act of 2008.
The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase toxic assets and equity from financial institutions to strengthen its financial sector that was passed by a Democratic Party controlled Congress and signed into law by Republican Party President George W. Bush on October 3, 2008. It was a component of the government's measures in 2008 to address the subprime mortgage crisis.
The TARP program originally authorized expenditures of $700 billion. The Emergency Economic Stabilization Act of 2008 created the TARP program. The Dodd–Frank Wall Street Reform and Consumer Protection Act, signed into law in 2010, reduced the amount authorized to $475 billion. By October 11, 2012, the Congressional Budget Office (CBO) stated that total disbursements would be $431 billion, and estimated the total cost, including grants for mortgage programs that have not yet been made, would be $24 billion.[1]
On December 19, 2014, the U.S. Treasury sold its remaining holdings of Ally Financial, essentially ending the program. TARP recovered funds totalling $441.7 billion from $426.4 billion invested, earning a $15.3 billion profit.[2]
Contents
1 Purpose
2 Timeline of changes to the TARP program
3 Administrative structure
4 Participation criteria
5 Eligible assets and asset valuation
6 Protection of government investment
7 Expenditures and commitments
8 Participants
9 TARP fraud
10 Similar historical federal banking programs
11 Controversies
12 American Bankers Association's attempts to expunge the TARP warrants
13 See also
14 References
15 Further reading
16 External links
Purpose[edit]
TARP allowed the United States Department of the Treasury to purchase or insure up to $700 billion of "troubled assets," defined as "(A) residential or commercial obligations will be bought, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress".[3]
In short, this allows the Treasury to purchase illiquid, difficult-to-value assets from banks and other financial institutions. The targeted assets can be collateralized debt obligations, which were sold in a booming market until 2007, when they were hit by widespread foreclosures on the underlying loans. TARP is intended to improve the liquidity of these assets by purchasing them using secondary market mechanisms, thus allowing participating institutions to stabilize their balance sheets and avoid further losses.
TARP does not allow banks to recoup losses already incurred on troubled assets, but officials expect that once trading of these assets resumes, their prices will stabilize and ultimately increase in value, resulting in gains to both participating banks and the Treasury itself. The concept of future gains from troubled assets comes from the hypothesis in the financial industry that these assets are oversold, as only a small percentage of all mortgages are in default, while the relative fall in prices represents losses from a much higher default rate.
The Emergency Economic Stabilization Act of 2008 (EESA) requires financial institutions selling assets to TARP to issue equity warrants (a type of security that entitles its holder to purchase shares in the company issuing the security for a specific price), or equity or senior debt securities (for non-publicly listed companies) to the Treasury. In the case of warrants, the Treasury will only receive warrants for non-voting shares, or will agree not to vote the stock. This measure is designed to protect the government by giving the Treasury the possibility of profiting through its new ownership stakes in these institutions. Ideally, if the financial institutions benefit from government assistance and recover their former strength, the government will also be able to profit from their recovery.[4]
Another important goal of TARP is to encourage banks to resume lending again at levels seen before the crisis, both to each other and to consumers and businesses. If TARP can stabilize bank capital ratios, it should theoretically allow them to increase lending instead of hoarding cash to cushion against future unforeseen losses from troubled assets. Increased lending equates to "loosening" of credit, which the government hopes will restore order to the financial markets and improve investor confidence in financial institutions and the markets. As banks gain increased lending confidence, the interbank lending interest rates (the rates at which the banks lend to each other on a short term basis) should decrease, further facilitating lending.[4]
TARP will operate as a "revolving purchase facility". The Treasury will have a set spending limit, $250 billion at the start of the program, with which it will purchase the assets and then either sell them or hold the assets and collect the coupons. The money received from sales and coupons will go back into the pool, facilitating the purchase of more assets. The initial $250 billion can be increased to $350 billion upon the president's certification to Congress that such an increase is necessary.[5] The remaining $350 billion may be released to the Treasury upon a written report to Congress from the Treasury with details of its plan for the money. Congress then has 15 days to vote to disapprove the increase before the money will be automatically released.[4] The first $350 billion was released on October 3, 2008, and Congress voted to approve the release of the second $350 billion on January 15, 2009. One way that TARP money is being spent is to support the "Making Homes Affordable" plan, which was implemented on March 4, 2009, using TARP money by the Department of Treasury. Because "at risk" mortgages are defined as "troubled assets" under TARP, the Treasury has the power to implement the plan. Generally, it provides refinancing for mortgages held by Fannie Mae or Freddie Mac; during the Federal takeover of these two enterprises, the Federal government provided a $317 billion asset relief, dwarfing the TARP bailout program.[6] Privately held mortgages will be eligible for other incentives, including a favorable loan modification for five years.[7]
The authority of the United States Department of the Treasury to establish and manage TARP under a newly created Office of Financial Stability became law October 3, 2008, the result of an initial proposal that ultimately was passed by Congress as H.R. 1424, enacting the Emergency Economic Stabilization Act of 2008 and several other acts.[8][9]
On October 8, the British announced their bank rescue package consisting of funding, debt guarantees and infusing capital into banks via preferred stock. This model was closely followed by the rest of Europe, as well as the U.S Government, who on the October 14 announced a $250bn (£143bn) Capital Purchase Program to buy stakes in a wide variety of banks in an effort to restore confidence in the sector. The money came from the $700bn Troubled Asset Relief Program.[10][11]
Timeline of changes to the TARP program[edit]
On October 14, 2008, Secretary of the Treasury Henry Paulson and President Bush separately announced revisions to the TARP program. The Treasury announced their intention to buy senior preferred stock and warrants from the nine largest American banks.
To qualify for this program, the Treasury required participating institutions to meet certain criteria, including: "(1) ensuring that incentive compensation for senior executives does not encourage unnecessary and excessive risks that threaten the value of the financial institution; (2) required clawback of any bonus or incentive compensation paid to a senior executive based on statements of earnings, gains or other criteria that are later proven to be materially inaccurate; (3) prohibition on the financial institution from making any golden parachute payment to a senior executive based on the Internal Revenue Code provision; and (4) agreement not to deduct for tax purposes executive compensation in excess of $500,000 for each senior executive".[12] The Treasury also bought preferred stock and warrants from hundreds of smaller banks, using the first $250 billion allotted to the program.[13]
The first allocation of the TARP money was primarily used to buy preferred stock, which is similar to debt in that it gets paid before common equity shareholders. This has led some economists to argue that the plan may be ineffective in inducing banks to lend efficiently.[14][15]
In the original plan presented by Paulson, the government would buy troubled (toxic) assets in insolvent banks and then sell them at auction to private investor and/or companies. This plan was scratched when Paulson met with United Kingdom's Prime Minister Gordon Brown who came to the White House for an international summit on the global credit crisis.[16] Prime Minister Brown, in an attempt to mitigate the credit squeeze in England, planned a package of three measures consisting of funding, debt guarantees and infusing capital into banks via preferred stock.[10][11] The objective was to directly support banks' solvency and funding; in some economists' view, effectively nationalizing many banks. This plan seemed attractive to the Treasury Secretary in that it was relatively easier and seemingly boosted lending more quickly. The first half of the asset purchases may not be effective in getting banks to lend again because they were reluctant to risk lending as before with low lending standards. To make matters worse, overnight lending to other banks came to a relative halt because banks did not trust each other to be prudent with their money.[citation needed]
On November 12, 2008, Paulson indicated that reviving the securitization market for consumer credit would be a new priority in the second allotment.[17][18]
On December 19, 2008, President Bush used his executive authority to declare that TARP funds could be spent on any program that Paulson,[19] deemed necessary to alleviate the financial crisis.
On December 31, 2008, the Treasury issued a report reviewing Section 102, the Troubled Assets Insurance Financing Fund, also known as the "Asset Guarantee Program". The report indicated that the program would likely not be made "widely available".[20]
On January 15, 2009, the Treasury issued interim final rules for reporting and record keeping requirements under the executive compensation standards of the Capital Purchase Program (CPP).[21]
On January 21, 2009, the Treasury announced new regulations regarding disclosure and mitigation of conflicts of interest in its TARP contracting.[22]
On February 5, 2009, the Senate approved changes to the TARP that prohibited firms receiving TARP funds from paying bonuses to their 25 highest-paid employees. The measure was proposed by Christopher Dodd of Connecticut as an amendment to the $900 billion economic stimulus act then waiting to be passed.[23]
On February 10, 2009, the newly confirmed Secretary of the Treasury Timothy Geithner outlined his plan to use the remaining $300 billion or so in TARP funds. He intended to direct $50 billion towards foreclosure mitigation and use the rest to help fund private investors to buy toxic assets from banks. Nevertheless, this highly anticipated speech coincided with a nearly 5 percent drop in the S&P 500 and was criticized for lacking details.[24]
On March 23, 2009, Geithner announced a Public-Private Investment Program (P-PIP) to buy toxic assets from banks' balance sheets. The major stock market indexes in the United States rallied on the day of the announcement rising by over six percent with the shares of bank stocks leading the way.[25] P-PIP has two primary programs. The Legacy Loans Program will attempt to buy residential loans from bank's balance sheets. The Federal Deposit Insurance Corporation (FDIC) will provide non-recourse loan guarantees for up to 85 percent of the purchase price of legacy loans. Private sector asset managers and the U.S. Treasury will provide the remaining assets. The second program is called the legacy securities program, which will buy residential mortgage backed securities (RMBS) that were originally rated AAA and commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) which are rated AAA. The funds will come in many instances in equal parts from the U.S. Treasury's TARP monies, private investors, and from loans from the Federal Reserve's Term Asset-Backed Securities Loan Facility (TALF). The initial size of the Public Private Investment Partnership is projected to be $500 billion.[26] Economist and Nobel Prize winner Paul Krugman has been very critical of this program arguing the non-recourse loans lead to a hidden subsidy that will be split by asset managers, banks' shareholders and creditors.[27] Banking analyst Meredith Whitney argues that banks will not sell bad assets at fair market values because they are reluctant to take asset write downs.[28] Economist Linus Wilson,[29] a frequent commenter on TARP related issues, also points to excessive misinformation and erroneous analysis surrounding the U.S. toxic asset auction plan.[30] Removing toxic assets would also reduce the volatility of banks' stock prices. This lost volatility will hurt the stock price of distressed banks. Therefore, such banks will only sell toxic assets at above market prices.[31]
On April 19, 2009, the Obama administration outlined the conversion of the TARP loans to common stock.[32]
Administrative structure[edit]
See also: Oversight of the Troubled Asset Relief Program
The program is run by the Treasury's new Office of Financial Stability. According to a speech made by Neel Kashkari,[33] the fund will be split into the following administrative units:
Mortgage-backed securities purchase program: This team is identifying which troubled assets to purchase, from whom to buy them and which purchase mechanism will best meet our policy objectives. Here, we are designing the detailed auction protocols and will work with vendors to implement the program.
Whole loan purchase program: Regional banks are particularly clogged with whole residential mortgage loans. This team is working with bank regulators to identify which types of loans to purchase first, how to value them, and which purchase mechanism will best meet our policy objectives.
Insurance program: We are establishing a program to insure troubled assets. We have several innovative ideas on how to structure this program, including how to insure mortgage-backed securities as well as whole loans. At the same time, we recognize that there are likely other good ideas out there that we could benefit from. Accordingly, on Friday we submitted to the Federal Register a public Request for Comment to solicit the best ideas on structuring options. We are requiring responses within fourteen days so we can consider them quickly, and begin designing the program.
Equity purchase program: We are designing a standardized program to purchase equity in a broad array of financial institutions. As with the other programs, the equity purchase program will be voluntary and designed with attractive terms to encourage participation from healthy institutions. It will also encourage firms to raise new private capital to complement public capital.
Homeownership preservation: When we purchase mortgages and mortgage-backed securities, we will look for every opportunity possible to help homeowners. This goal is consistent with other programs – such as HOPE NOW – aimed at working with borrowers, counselors and servicers to keep people in their homes. In this case, we are working with the Department of Housing and Urban Development to maximize these opportunities to help as many homeowners as possible, while also protecting the government.
Executive compensation: The law sets out important requirements regarding executive compensation for firms that participate in the TARP. This team is working hard to define the requirements for financial institutions to participate in three possible scenarios: One, an auction purchase of troubled assets; two, a broad equity or direct purchase program; and three, a case of an intervention to prevent the impending failure of a systemically significant institution.
Compliance: The law establishes important oversight and compliance structures, including establishing an Oversight Board, on-site participation of the General Accounting Office and the creation of a Special Inspector General, with thorough reporting requirements.
Eric Thorson is the Inspector General of the US Department of the Treasury and currently is responsible for the oversight of the TARP but has expressed concerns about the difficulty of properly overseeing the complex program in addition to his regular responsibilities. Thorson called oversight of TARP a "mess" and later clarified this to say "The word 'mess' was a description of the difficulty my office would have in providing the proper level of oversight of the TARP while handling its growing workload, including conducting audits of certain failed banks and thrifts at the same time that efforts are underway to nominate a special inspector general."[34]
As of November 2008[update], Neil Barofsky was nominated as the Special Treasury Department Inspector General with the express role of overseeing the TARP. Barofsky is undergoing senate confirmation hearings from the Senate Finance Committee.
The Treasury retained the law firms of Squire, Sanders & Dempsey and Hughes, Hubbard & Reed to assist in the administration of the program.[35] Accounting and internal controls support services have been contracted from PricewaterhouseCoopers and Ernst and Young under the Federal Supply Schedule.[36]
Participation criteria[edit]
The Act's criterion for participation states that "financial institutions" will be included in TARP if they are "established and regulated" under the laws of the United States and if they have "significant operations" in the United States. The Treasury will need to define what institutions will be included under the term "financial institution" and what will constitute "significant operations".[4] Companies that sell their bad assets to the government must provide warrants so that the government will benefit from future growth of the companies.[5] Certain institutions seem to be guaranteed participation. These include: U.S. banks, U.S. branches of a foreign bank, U.S. savings banks or credit unions, U.S. broker-dealers, U.S. insurance companies, U.S. mutual funds or other U.S. registered investment companies, tax-qualified U.S. employee retirement plans, and bank holding companies.[4]
The President is to submit a law to cover government losses on the fund, using "a small, broad-based fee on all financial institutions".[5] To participate in the bailout program, "...companies will lose certain tax benefits and, in some cases, must limit executive pay. In addition, the bill limits 'golden parachutes' and requires that unearned bonuses be returned."[5] The fund has an Oversight Board so that the U.S. Treasury cannot act in an arbitrary manner. There is also an inspector general to protect against waste, fraud and abuse.[5]
CAMELS ratings (US supervisory ratings used to classify the nation's 8,500 banks) are being used by the United States government in response to the global financial crisis of 2008 to help it decide which banks to provide special help for and which to not as part of its capitalization program authorized by the Emergency Economic Stabilization Act of 2008. It is being used to classify the nation's 8,500 banks into five categories, where a ranking of 1 means they are most likely to be helped and a 5 most likely to not be helped. Regulators are applying a short list of criteria based on a secret ratings system they use to gauge this.[37]
The New York Times states: "The criteria being used to choose who gets money appears to be setting the stage for consolidation in the industry by favoring those most likely to survive" because the criteria appears to favor the financially best off banks and banks too big to let fail. Some lawmakers are upset that the capitalization program will end up culling banks in their districts.[37] However, The Wall Street Journal suggested that some lawmakers are actively using TARP to funnel money to weak regional banks in their districts.[38] Academic studies have found that banks and credit unions located in the districts of key Congress members have been more likely to win TARP money.[39][40]
Known aspects of the capitalization program "suggest that the government may be loosely defining what constitutes healthy institutions. [... Banks] that have been profitable over the last year are the most likely to receive capital. Banks that have lost money over the last year, however, must pass additional tests. [...] They are also asking if a bank has enough capital and reserves to withstand severe losses to its construction loan portfolio, nonperforming loans and other troubled assets."[37] Some banks received capital with the understanding the banks would try to find a merger partner. To receive capital under the program banks are also "required to provide a specific business plan for the next two or three years and explain how they plan to deploy the capital".[37]
Eligible assets and asset valuation[edit]
TARP allows the Treasury to purchase both "troubled assets" and any other asset the purchase of which the Treasury determines is "necessary" to further economic stability. Troubled assets include real estate and mortgage-related assets and securities based on those assets. This includes both the mortgages themselves and the various financial instruments created by pooling groups of mortgages into one security to be bought on the market. This category probably includes foreclosed properties as well.[4]
Real estate and mortgage-related assets (and securities based on those kinds of assets) are eligible if they originated (that is, were created) or were issued on or before March 14, 2008, the date of the Bear Stearns bailout.[4]
One of the most difficult issues facing the Treasury in managing TARP is the pricing of the troubled assets. The Treasury must find a way to price extremely complex and sometimes unwieldy instruments for which a market does not exist. In addition, the pricing must strike a balance between efficiently using public funds provided by the government and providing adequate assistance to the financial institutions that need it.[4]
The Act encourages the Treasury to design a program using market mechanisms to the extent possible. This has led to the expectation that the Treasury will use a "reverse auction" mechanism to price assets. A reverse auction means that bidders (that is, the potential sellers of the troubled assets) will place bids with the Treasury for the right to sell a specified type of assets. The sale price will be the lowest price at which the bid will provide the required quantity of the item. Theoretically, the system creates a market price because the bidders will want to sell at the highest price they can get, but they also want to be able to make a sale, so they must set a low enough price to be competitive. The Treasury is required to publish its methods for pricing, purchasing, and valuing troubled assets no later than two days after the purchase of their first asset.[4]
The Congressional Budget Office (CBO) uses procedures similar to those specified in the Federal Credit Reform Act (FCRA) to value assets purchased under the TARP.[3]
In a report dated February 6, 2009, the Congressional Oversight Panel concluded that the Treasury paid substantially more for the assets it purchased under the TARP than their then-current market value. The COP found the Treasury paid $254 billion, for which it received assets worth approximately $176 billion, for a shortfall of $78 billion. The COP's valuation analysis assumed that "securities similar to those issued under the TARP were trading in the capital markets at fair values" and employed multiple approaches to cross-check and validate the results. The value was estimated for each security as of the time immediately following the announcement by Treasury of its purchase. For example, the COP found that the Treasury bought $25 billion of assets from Citigroup on October 14, 2008, however, the actual value was estimated to be $15.5, creating a 38 percent (or $9.5 billion) subsidy.[21]
Protection of government investment[edit]
Equity stakes
The Act requires financial institutions selling assets to TARP to issue equity warrants (a type of security that entitles its holder to purchase shares in the company issuing the security for a specific price), or equity or senior debt securities (for non-publicly listed companies) to the Treasury. In the case of warrants, the Treasury will only receive warrants for non-voting shares, or will agree not to vote the stock. This measure is designed to protect the government by giving the Treasury the possibility of profiting through its new ownership stakes in these institutions. Ideally, if the financial institutions benefit from government assistance and recover their former strength, the government will also be able to profit from their recovery.[4]
Limits on executive compensation
The Act sets some limits on the compensation of the five highest-paid executives at companies that elect to participate significantly in TARP. The Act treats companies that participate through the auction process differently from those that participate through direct sale (that is, without a bidding process).
Companies who sell more than $300 million in assets through an auction process are prohibited from signing new "golden parachute" contracts (employment contracts that provide for large payments upon termination) with any future executives. It will also place a $500,000 limit on annual tax deductions for payment of each executive, as well as a deduction limit on severance benefits for any golden parachutes already in place.[4]
Companies in which the Treasury acquires equity because of direct purchases must meet tougher standards to be established by the Treasury. These standards will require the companies to eliminate compensation structures that encourage "unnecessary and excessive" risk-taking by executives, provide for claw-back (forced repayment of bonuses in the event of a post-payment determination that the bonuses were paid on the basis of false data) of bonuses already paid to senior executives based on financial statements later proven to be inaccurate, and prohibit payment of previously established golden parachutes.[4]
Recoupment
This provision was a big factor in the eventual passage of the EESA. It gives the government the opportunity to "be repaid". The recoupment provision requires the Director of the Office of Management and Budget to submit a report on TARP's financial status to Congress five years after its enactment. If TARP has not been able to recoup its outlays through the sale of the assets, the Act requires the President to submit a plan to Congress to recoup the losses from the financial industry. Theoretically, this prevents TARP from adding to the national debt. The use of the term "financial industry" in the provision leaves open the possibility that such a plan would involve the entire financial sector rather than only those institutions that availed themselves of TARP.[4]
Disclosure and Transparency
Though the Treasury will ultimately determine the type and extent of disclosure required for participation in the TARP, it is clear that these requirements will be extensive, particularly with respect to any asset acquired by TARP. It seems certain that institutions who participate in TARP will have to publicly disclose information pertaining to their participation, including the number of assets they sold to TARP, what type of assets were sold, and at what price. More extensive disclosure may be required at the discretion of the Treasury.[4]
The Act also seems to give a broad mandate to the Treasury to determine, for each "type" of institution that sells assets to TARP, whether the current disclosure and transparency requirements on the sources of the institution's exposure (such as off-balance sheet transactions, derivative instruments, and contingent liabilities) are adequate. If the Treasury finds that a particular institution has not provided sufficient disclosures, it has the power to make recommendations for new disclosure requirements to the institution's regulators, which will probably include foreign-government regulators for those foreign financial institutions that have "significant operations" in the United States.[4]
Judicial Review of Treasury Actions
The Act provides for judicial review of the actions taken by the Treasury under the EESA. In other words, the Treasury may be taken to court for actions it takes pursuant to the Act. Specifically, Treasury actions may be held unlawful if they involve an abuse of discretion, or are found to be "arbitrary, capricious . . . or not in accordance with law". However, a financial institution that sells assets to TARP is cannot challenge the Treasury's actions with respect to that institution's specific participation in TARP.[4]
Expenditures and commitments[edit]
As of June 30, 2012[update], $467 billion had been allotted, and $416 billion spent, according to a literature review on the TARP.[41] Among the money committed, includes:
$204.9 billion to purchase bank equity shares through the Capital Purchase Program
$67.8 billion to purchase preferred shares of American International Group (AIG), then among the top 10 US companies, through the program for Systemically Significant Failing Institutions;
$1.4 billion to back any losses that the Federal Reserve Bank of New York might incur under the Term Asset-Backed Securities Loan Facility;
$40 billion in stock purchases of Citigroup and Bank of America ($20 billion each) through the Targeted Investment Program ($40 billion spent). All that money had been returned.
$5 billion in loan guarantees for Citigroup ($5 billion). The program closed, with no payment made, on December 23, 2009.
$79.7 billion in loans and capital injections to automakers and their financing arms through the Automotive Industry Financing Program.
$21.9 billion to buy "toxic" mortgage-related securities.
$0.6 billion in capital for banks in Community Development Capital Initiative (CDCI) for banks serving disadvantaged communities.
$45.6 billion for homeowner foreclosure assistance. Only $4.5 billion had been spent at the time.
The Congressional Budget Office released a report in January 2009, reviewing the transactions enacted through the TARP. The CBO found that through December 31, 2008, transactions under the TARP totaled $247 billion. According to the CBO's report, the Treasury had purchased $178 billion in shares of preferred stock and warrants from 214 U.S. financial institutions through its Capital Purchase Program (CPP). This included the purchase of $40 billion of preferred stock in AIG, $25 billion of preferred stock in Citigroup, and $15 billion of preferred stock in Bank of America. The Treasury also agreed to lend $18.4 billion to General Motors and Chrysler. The Treasury, the FDIC and the Federal Reserve have also agreed to guarantee a $306 billion portfolio of assets owned by Citigroup.[3]
The CBO also estimated the subsidy cost for transactions under TARP. The subsidy cost is defined as, broadly speaking, the difference between what the Treasury paid for the investments or lent to the firms and the market value of those transactions, where the assets in question were valued using procedures similar to those specified in the Federal Credit Reform Act (FCRA), but adjusting for market risk as specified in the EESA.[3] The CBO estimated that the subsidy cost of the $247 billion in transactions before December 31, 2008 amounts to $64 billion. As of August 31, 2015, TARP is projected to cost approximately $37.3 billion total - significantly less than the $700 billion originally authorized by Congress.[42]
The May 2015 report of the TARP to Congress stated that $427.1 billion had been disbursed, total proceeds by April 30, 2015 were $441.8 billion, exceeding disbursements by $14.1 billion, though this included $17.7 billion in non-TARP AIG shares. The report predicted a total net cash outflow of $37.7 billion (excluding non-TARP AIG shares), based on the assumption the TARP housing programs' (Hardest Hit Fund, Making Home Affordable and FHA refinancing) funds are fully taken up. Debt is still outstanding, some of which has been converted to common stock, from just under $125 million down to $7000. Sums loaned to entities that have gone into, and in some cases emerged from bankruptcy or receivership are provided. Additional sums have been written off, for example Treasury's original investment of $854 million in Old GM.[43]
The May 2015 report also detailed other costs of the program, including $1.157 billion "for financial agents and legal firms" $142 million for personnel services, and $303 million for "other services".[43]
Participants[edit]
See also: Supervisory Capital Assessment Program
The banks agreeing to receive preferred stock investments from the Treasury include Goldman Sachs Group Inc., Morgan Stanley, J.P. Morgan Chase & Co., Bank of America Corp. (which had just agreed to purchase Merrill Lynch), Citigroup Inc., Wells Fargo & Co., Bank of New York Mellon and State Street Corp.[44][45][46] The Bank of New York Mellon is to serve as master custodian overseeing the fund.[47]
The U.S. Treasury maintains an official list of TARP recipients and proceeds to the government on a TARP website. Beneficiaries of TARP include the following:[48]
Company
Preferred stock purchased (billions USD)
Assets guaranteed (billions USD)
Repaid TARP money (billions USD)
Additional details
Citigroup $45 $306 Partial ($20);[49] Two allocations: $25 on October 28, 2008 and $20 in January 2009. The rest was converted to common equity which was sold by the Treasury Department over time with the final sale taking place in December 2010 at a $12 billion profit.[50]
Bank of America $45 $118 Y[51][52] Two allocations: $25 on October 28, 2008, and $20 in January 2009
AIG (American International Group) $40 $36[53]
JPMorgan Chase $25 Y October 28, 2008
Wells Fargo $25 Y[49] October 28, 2008
GMAC Financial Services (Ally) $17.3 Y Total stake has been liquidated with income received of $19.6 billion.[2] Now renamed to Ally Financial.
General Motors $13.4 Y Total loan portion repaid with interest to U.S. & Canadian governments as of April 21, 2010[update], ; $2.1 billion in preferred stock and 61 percent common equity share outstanding[54]
Goldman Sachs $10 Y October 28, 2008
Morgan Stanley $10 Y Repaid June 17, 2009[55]
PNC Financial Services Group $7.579 Y[56] Bought longtime rival National City Corp. within hours of receiving TARP money. Announced on February 2, 2010, that it would repay its TARP loan.[57]
U.S. Bancorp $6.6 Y
Chrysler $4 Y Although Chrysler repaid their loans,[58] the Treasury sold its 6% stake in the company to Fiat at a $1.3 billion loss.[59]
Capital One Financial $3.555 Y
Regions Financial Corporation $3.5 Y Repaid April 4, 2012[60]
American Express $3.389 Y
Bank of New York Mellon Corp $2 to $3 Y
State Street Corporation $2 to $3 Y
Discover Financial $1.23[61] Y[62]
Of these banks, JPMorgan Chase & Co., Morgan Stanley, American Express Co., Goldman Sachs Group Inc., U.S. Bancorp, Capital One Financial Corp., Bank of New York Mellon Corp., State Street Corp., BB&T Corp, Wells Fargo & Co. and Bank of America repaid TARP money. Most banks repaid TARP funds using capital raised from the issuance of equity securities and debt not guaranteed by the federal government. PNC Financial Services, one of the few profitable banks without TARP money, planned on paying their share back by January 2011, by building up its cash reserves instead of issuing equity securities.[63] However, PNC reversed course on February 2, 2010, by issuing $3 billion in shares and $1.5-2 billion in senior notes in order to pay its TARP funds back. PNC also raised funds by selling its Global Investment Services division to crosstown rival The Bank of New York Mellon.[56]
In a January 2012, review, it was reported that AIG still owed around $50 billion, GM about $25 billion and Ally about $12 billion. Break even on the first two companies would be at $28.73 a share versus then-current share price of $25.31 and $53.98 versus then-current share price of $24.92, respectively. Ally was not publicly traded. The 371 banks that still owed money include Regions ($3.5 billion), Zions Bancorporation ($1.4 billion), Synovus Financial Corp. ($967.9 million), Popular, Inc. ($935 million), First BanCorp of San Juan, Puerto Rico ($400 million) and M&T Bank Corp. ($381.5 million).[64]
TARP fraud[edit]
To date, some in the financial industry have been accused of not using the loaned dollars for its intended reason. Others further abused investors after the TARP legislation was passed by telling investors their money was invested in the federal TARP financial bailout program and other securities that did not exist.[65] Neil Barofsky, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), told lawmakers, "Inadequate oversight and insufficient information about what companies are doing with the money leaves the program open to fraud, including conflicts of interest facing fund managers, collusion between participants and vulnerabilities to money laundering.[66]
In its October 2011 quarterly report to Congress, SIGTARP reported "more than 150 ongoing criminal and civil investigations". SIGTARP had already achieved criminal convictions of 28 defendants (19 had already been sentenced to prison), and civil cases naming 37 individuals and 18 corporate/legal entities as defendants. It had recovered $151 million, and prevented $553 million going to Colonial Bank, which failed.[67]
The first TARP fraud case was brought by the SEC on January 19, 2009, against Nashville-based Gordon Grigg and his firm ProTrust Management.[68] The latest occurred in March 2010, with the FBI claiming Charles Antonucci, the former president and chief executive of the Park Avenue Bank, made false statements to regulators in an effort to obtain about $11 million from the fund.[69]
Similar historical federal banking programs[edit]
The nearest parallel action the federal government has taken was in investments made by the Reconstruction Finance Corporation (RFC) in the 1930s. The RFC, an agency chartered during the Herbert Hoover administration in 1932, made loans to distressed banks and bought stock in 6,000 banks, totalling $1.3 billion. The New York Times, citing finance experts on October 13, 2008, noted that, "A similar effort these days, in proportion to today's economy, would be about $200 billion." When the economy had stabilized, the government sold its bank stock to private investors or the banks, and is estimated to have received approximately the same amount previously invested.[70]
In 1984, the government took an 80 percent stake in the nation's then seventh-largest bank Continental Illinois Bank and Trust. Continental Illinois made loans to oil drillers and service companies in Oklahoma and Texas. The government was estimated to have lost $1 billion because of Continental Illinois, which ultimately became part of Bank of America.[70]
The $24 billion for the estimated subsidy cost of TARP was less than the government's cost for the savings and loan crisis of the late 1980s, although the subsidy cost does not include the cost of other "bailout" programs (such as the Federal Reserve's Maiden Lane Transactions and the Federal takeover of Fannie Mae and Freddie Mac). The cost of the S&L crisis amounted to 3.2 percent of GDP during the Reagan/Bush era, while the GDP percentage of the TARP cost was estimated at less than 1 percent.[71]
Controversies[edit]
See also: AIG bonus payments controversy, Indiana State Police Pension Trust v. Chrysler, and National City acquisition by PNC
The primary purpose of TARP, according to the Federal Reserve, was to stabilize the financial sector by purchasing illiquid assets from banks and other financial institutions.[72] However, the effects of the TARP have been widely debated in large part because the purpose of the fund is not widely understood. A review of investor presentations and conference calls by executives of some two dozen US-based banks by The New York Times found that "few [banks] cited lending as a priority. Further, an overwhelming majority saw the program as a no-strings-attached windfall that could be used to pay down debt, acquire other businesses or invest for the future."[73] The article cited several bank chairmen as stating that they viewed the money as available for strategic acquisitions in the future rather than to increase lending to the private sector, whose ability to pay back the loans was suspect. PlainsCapital chairman Alan B. White saw the Bush administration's cash infusion as "opportunity capital," noting, "They didn't tell me I had to do anything particular with it."
Moreover, while TARP funds have been provided to bank holding companies, those holding companies have only used a fraction of such funds to recapitalize their bank subsidiaries.[74]
Many analysts speculated TARP funds could be used by stronger banks to buy weaker ones.[75] On October 24, 2008, PNC Financial Services received $7.7 billion in TARP funds, then only hours later agreed to buy National City Corp. for $5.58 billion, an amount that was considered a bargain.[76] Despite ongoing speculation that more TARP funds could be used by large-but-weak banks to gobble up small banks, as of October 2009, no further such takeover had occurred.
The Senate Congressional Oversight Panel created to oversee the TARP concluded on January 9, 2009: "In particular, the Panel sees no evidence that the U.S. Treasury has used TARP funds to support the housing market by avoiding preventable foreclosures." The panel also concluded that "Although half the money has not yet been received by the banks, hundreds of billions of dollars have been injected into the marketplace with no demonstrable effects on lending."[77]
Government officials overseeing the bailout have acknowledged difficulties in tracking the money and in measuring the bailout's effectiveness.[78]
During 2008, companies that received $295 billion in bailout money had spent $114 million on lobbying and campaign contributions.[79] Banks that received bailout money had compensated their top executives nearly $1.6 billion in 2007, including salaries, cash bonuses, stock options, and benefits including personal use of company jets and chauffeurs, home security, country club memberships, and professional money management.[80] The Obama administration has promised to set a $500,000 cap on executive pay at companies that receive bailout money,[81] directing banks to tie risk taken to workers' reward by paying anything further in deferred stock.[82] Graef Crystal, a former compensation consultant and author of "The Crystal Report on Executive Compensation," claimed that the limits on executive pay were "a joke" and that "they're just allowing companies to defer compensation."[83]
In November 2011, a report showed that the sum of the government's guarantees increased to $7.77 trillion; however, loans to banks were only a small fraction of that amount.[84]
One study found that the typical white-owned bank was about ten times more likely to receive TARP money in the CDCI program than a black-owned bank after controlling for other factors.[85]
American Bankers Association's attempts to expunge the TARP warrants[edit]
By March 31, 2009, four banks out of over five hundred had returned their preferred stock obligations. None of the publicly traded banks had yet bought back their warrants owned by the U.S. Treasury by March 31, 2009.[86] According to the terms of the U.S. Treasury's investment, the banks returning funds can either negotiate to buy back the warrants at fair market value, or the U.S. Treasury can sell the warrants to third party investors as soon as feasible. Warrants are call options that add to the number of shares of stock outstanding if they are exercised for a profit. The American Bankers Association (ABA) has lobbied Congress to cancel the warrants owned by the government, calling them an "onerous exit fee".[87] Yet, if the Capital Purchase Program warrants of Goldman Sachs are representative, then the Capital Purchase Program warrants were worth between $5-to-$24 billion as of May 1, 2009. Canceling the CPP warrants thus amounts to a $5-to-$24 billion subsidy to the banking industry at government expense.[88] While the ABA wants the CPP warrants to be written off by the government, Goldman Sachs does not hold that view. A representative of Goldman Sachs was quoted as saying "We think that taxpayers should expect a decent return on their investment and look forward to being able to provide just that when we are permitted to return the TARP money."[89]
See also[edit]
2008 United Kingdom bank rescue package
Corporate welfare
Emergency Economic Stabilization Act of 2008
Financial Crisis Responsibility Fee
H.R. 1424
Lemon socialism
Liquidity crisis of September 2008
Matthew Pendo
NCUA Corporate Stabilization Program
Oversight of the Troubled Asset Relief Program
References[edit]
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Jump up ^ "Political Influence and TARP Investments in Credit Unions by Elisabeta Pana, Linus Wilson :: SSRN". doi:10.2139/ssrn.1698945. Retrieved November 4, 2013.
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Jump up ^ http://www.sigtarp.gov/Audit%20Reports/Assessing%20Treasury's%20Process%20to%20Sell%20Warrants%20Received%20From%20TARP%20Recipients_May_11_2010.pdf
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Further reading[edit]
Stewart, James B., "Eight Days: the battle to save the American financial system",The New Yorker magazine, September 21, 2009.
The report on TARP repayments is available here
External links[edit]
FinancialStability.gov Official website
Datasets and Tools for FinancialStability.gov at Data.gov
"Stimulus.org". Retrieved October 16, 2012. (Listing of all economic recovery measures, including from the TARP program.)
Ericson, Matthew; He, Elaine; Schoenfeld, Amy. "Tracking the $700 Billion Bailout". The New York Times. Archived from the original on February 20, 2010. Retrieved January 9, 2009. (Listing of recipients for funds allocated or distributed under the TARP program.)
Zumbrun, Josh; et al. (October 14, 2008). "The Ownership Society". Forbes. New York. Analysis of the injection of Government equity capital into banks.
Nomi Prins: "Obama Banking Too Much on Banks" – video report by Democracy Now! September 15, 2009
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Carroll Rosenbloom
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Carroll Rosenbloom
Born
(1907-03-05)March 5, 1907
Baltimore, Maryland
Died
April 2, 1979(1979-04-02) (aged 72)
Golden Beach, Florida
Cause of death
Drowning due to probable heart attack
Occupation
Businessman
Known for
owner of the Baltimore Colts and Los Angeles Rams
Spouse(s)
Velma Anderson (divorced)
Georgia Frontiere (until death)
Children
with Anderson:
-Steve Rosenbloom
-Dan Rosenbloom
-Suzanne Rosenbloom Irwin
with Frontiere:
-Chip Rosenbloom
-Lucia Rosenbloom Rodriguez
Parent(s)
Anna Rosenbloom
Solomon Rosenbloom
Carroll Rosenbloom (March 5, 1907 – April 2, 1979) was an American businessman. He was the owner of two National Football League franchises; he was the first owner of the Baltimore Colts, and later switched teams, taking ownership of the Los Angeles Rams.[1][2]
During his stewardship of both franchises, Rosenbloom amassed the best ownership winning percentage in league history (.660), a total regular season record of 226 wins, 116 losses, and 8 ties, as well as 3 NFL championships (1958,1959,1968), and 1 Super Bowl (Super Bowl V).[3]
Rosenbloom has been described as the NFL's first modern owner and the first players' owner.[3] Rosenbloom was part of the NFL inner circle that negotiated the league's network TV contracts with NBC and CBS and the NFL/AFL merger, both of which contributed to professional football becoming both profitable and the most watched spectator sport in the United States.[3][4][5]
Contents
[hide]
1 Early life and education
2 Business career
3 National Football League
3.1 Baltimore Colts (1953–1971)
3.2 Los Angeles Rams (1972–1979)
4 Death and ensuing controversy
5 Influence on the NFL
6 Awards and recognition
7 Personal life
8 References
Early life and education[edit]
Rosenbloom was born in Baltimore, Maryland on March 5, 1907, to Anna and Solomon Rosenbloom. He was the eighth of nine children, raised in a Jewish family.[6] His father, an immigrant from Russian Poland, started a successful work-clothing manufacturing company.[1]
As a youth, Sports Illustrated described Rosenbloom as an "indifferent student" but a "good athlete." He played football and baseball and boxed.[1]
Rosenbloom graduated from Baltimore City College in 1926 then later that year attended the University of Pennsylvania, where he studied psychology and business and was a two-year letterman as a halfback on the football team in 1927 and 1928.[7][8] At the time, the Quakers' backfield coach was Bert Bell, who later became the commissioner of the NFL.[1]
Business career[edit]
Upon graduation, Rosenbloom returned to Baltimore to work for his father's clothing company. After being sent to liquidate the Blue Ridge Overalls Company, a small factory his father had acquired, Rosenbloom decided he wanted to run the fledgling company on his own. Based in Roanoke, Virginia, Blue Ridge had suffered during the Depression. But Rosenbloom was intent to turn it around. When the U.S. Civilian Conservation Corps was authorized in 1933 and officials needed denim work clothes, Rosenbloom successfully secured Blue Ridge a large order.[1]
By 1940, after attaining distribution through large channels like Sears-Roebuck and J.C. Penney, Blue Ridge had grown into a prosperous company allowing Rosenbloom to retire at 32.[1] (As a youth, Rosenbloom told his brother Ben he planned to retire at 34.)[1] During a brief retirement, Rosenbloom lived as a gentleman farmer on Maryland's Eastern Shore, growing corn and peaches. As well, during this time, Rosenbloom married Velma Anderson.[1]
Rosenbloom's father's death in 1942 cut his retirement short, however. When Rosenbloom was named the executor of his father's estate, he chose to return to business life.[1]
By 1959, Blue Ridge had grown to include almost a dozen shirt and overall companies and 7,000 employees, leading some to dub Rosenbloom "America's Overalls King."[3] In the financial interests of his family, Rosenbloom decided to sell the company to P & R, the price being $7 million in cash and more than $20 million in stock. At P & R, Rosenbloom served as a Director.[1]
With the success of his first enterprise, Rosenbloom diversified his business interests. In the late 1950s, Rosenbloom and his partners bought control of Universal Products Co. He went on to buy American Totalisator and other small companies, eventually lumping them all together under the name Universal Controls, Inc.[1]
Rosenbloom was one of the largest individual shareholders in Seven Arts Productions Limited, which backed the Broadway musical Funny Girl, and the films Lolita, What Ever Happened to Baby Jane?, and The Night of the Iguana.[1]
National Football League[edit]
Baltimore Colts (1953–1971)[edit]
After losing the original Colts team in 1951, the city of Baltimore petitioned the NFL for another franchise. Around this time, NFL Commissioner Bert Bell wanted to find a new home for the Dallas Texans, an NFL expansion team that folded after one failed season in 1952. Bell sought a competitive new owner with financial resources. From their days together at Penn, Bell thought Rosenbloom would be a great fit. Though Rosenbloom was hesitant at first to own a franchise, he relented and bought the team along with a group of other investors. Rosenbloom's share cost him $13,000. In January 1953, the NFL awarded the city of Baltimore the Dallas Texans franchise, with Rosenbloom as the principal owner.[2][4]
Adopting the nickname of the city's earlier professional incarnation, the Colts, Rosenbloom asked fans to give him five years to create a winning team.[1]
Before their first season, Rosenbloom helped organize one of the biggest trades in sports history: in exchange for ten Cleveland Browns, the Colts traded five players. Among the players traded to Baltimore were Don Shula, Art Spinney, Bert Rechichar, Carl Taseff, Ed Sharkey, Gern Nagler, Harry Agganis, Dick Batten, Stu Sheets, and Elmer Willhoite.[9]
In 1954, the Colts hired Weeb Ewbank as head coach. Ewbank led the Colts for nine seasons and won two conference and NFL Championships with the help of 1956 free agent quarterback Johnny Unitas.[9]
On November 30, 1958, the Colts clinched their first Western Conference title. Four weeks later, the team won its first NFL Championship, beating the New York Giants, 23-17 in what is regarded as "The Greatest Game Ever Played," six years after Rosenbloom purchased the team. The televised game, a sudden death thriller, would serve as a launching point for the start of the NFL's enormous boom in popularity.[1][9][10]
The Colts repeated as champions in 1959, again defeating the Giants, 31-16, for the NFL Championship.[10] During the 1960 through 1962 seasons, the Colts struggled.[9] So in 1963 Rosenbloom let go of Coach Ewbank and hired former player Don Shula, then the youngest coach in NFL history.[9][11][12] Over the next several seasons the team did not win another championship but did make it to the NFL Championship game in 1964, losing to the Cleveland Browns 27-0, and to the 1968 Super Bowl III, again to lose, this time to the New York Jets, 16-7 (the Jets were coached by Ewbank).[10] (The NFL Championship retroactively changed names to the Super Bowl in 1966 prior to the AFL-NFL merger of 1970.)
After the 1969 season, Shula left Baltimore for Miami after Dolphins owner Joe Robbie tempted Shula with about $750,000 and other perks.[6] Rosenbloom was furious and successfully argued that Miami had tampered with Shula. Because of the infraction, the NFL awarded Baltimore with Miami's 1971 first-round draft choice.[6]
On January 17, 1971, the Colts won a fourth league title, defeating the Dallas Cowboys 16-13 in Super Bowl V.[9][10]
A fierce competitor, Rosenbloom had a profound interest in his team succeeding. Describing his commitment to the Colts and his experience running a franchise, Rosenbloom told Sports Illustrated magazine:
"After the first year in football, I found that of all the things I've ever done, this is the thing. There is nothing more rewarding. You have everything wrapped up in one bundle. You meet much nicer people than you do in business. You meet the public, and you must learn to look out for them. There's no place where your word is more your bond than in sports. You'd never find 14 men who deal as fairly with one another as the 14 owners in the National Football League, particularly after some of the things that have gone on in business or on Wall Street. You play a part in the lives of young men, and you help them grow. And then every Sunday you have the great pleasure of dying."[1]
However, while Rosenbloom loved the Colts, due to issues with the Baltimore Memorial Stadium and the city's officials, Rosenbloom wanted to leave Baltimore.[2] In the next offseason in 1972, Rosenbloom completed a historic tax-free swapping of teams with new Los Angeles Rams owner Robert Irsay.[13] When Rosenbloom left, he received recognition from his players. Colts linebacker Mike Curtis said, "I hate to see Carroll go. He was a damn good owner. It wasn't the coaches who made Baltimore a winner for 14 years."[2]
Los Angeles Rams (1972–1979)[edit]
By the 1972 season, Rosenbloom assumed control as the majority owner of the Rams.[13]
The Rams remained solid contenders in the 1970s, winning seven straight NFC West championships between 1973 and 1979. Though a strong team, the Rams lost the first four conference championship games they played in that decade, twice to Minnesota (1974, 1976) and twice to Dallas (1975, 1978) and failed to win a Super Bowl.[14]
In 1978, Rosenbloom announced plans to move the Rams to Anaheim Stadium, citing dissatisfaction with the Los Angeles Coliseum and the location as the motives behind the move.[15] (The move eventually occurred in 1980, a year after Rosenbloom's death. The extra time was needed to retrofit Anaheim Stadium, which opened in 1966 for Major League Baseball's California Angels, from a baseball-only facility into a multi-purpose stadium.)[14]
Death and ensuing controversy[edit]
While swimming at Golden Beach, Florida, Rosenbloom drowned on April 2, 1979. He was 72. Though Dr. Joseph H. Davis, the Dade County coroner, stated, "there is not one scintilla of reason to believe this is anything other than an unfortunate accident," a PBS Frontline documentary called "An Unauthorized History of the NFL" suggested that Rosenbloom, a known gambler, may have been murdered,[16] causing law enforcement to question the case.[citation needed]
The final conclusion was that Carroll, who had been one of the first heart bypass patients, had suffered a heart attack while swimming. Witnesses at the scene and the Miami coroner's office and the Miami chief of police confirmed this finding.[17]
After Rosenbloom's death, his second wife, Georgia Frontiere, inherited a 70% ownership stake in the Los Angeles Rams. Rosenbloom's five children inherited the other 30%.[18][19]
Frontiere's inheritance came as a surprise to many fans (though not to close friends and family)[18] who thought Steve Rosenbloom, the former owner's son from a previous marriage and the Rams' vice-president, would take a leadership role in the team's management. It was not a surprise to close friends and family because Rosenbloom was trying to take advantage of the widow's tax exemption. There was a draft of Rosenbloom's will that was to be changed so the team would be left to his son Steve, however, it was never executed.[20] Over 900 people attended Rosenbloom's memorial service, including 15 NFL owners, sportscaster Howard Cosell, the entire Rams organization and actors Warren Beatty, Kirk Douglas, Cary Grant, Jimmy Stewart, Rod Steiger, and Henry Mancini.[3]
Influence on the NFL[edit]
Rosenbloom influenced the modern day NFL in many ways, namely in that he envisioned that the league could be a successful business. In 1960, the NFL owners were deadlocked about naming a successor to Commissioner Bell. After reviewing 23 ballots, Rosenbloom brought up the name of Los Angeles Rams general manager Pete Rozelle as a compromise candidate because he had successfully made the Rams profitable.[3]
At the age of 33, Rozelle was elected commissioner. Rozelle, with the help of Rosenbloom, would spearhead equal revenue sharing of all TV contracts among the 12 league franchises, which helped make the league profitable and caused football to surpass baseball as the most watched spectator sport in the US.[3]
Upon Rosenbloom's death, Rozelle said, "Carroll Rosenbloom played a major role in the growth and success of the NFL, both through the teams he produced and through his active participation in the league's decision making process."[3]
Rosenbloom was also influential in making the AFL-NFL merger possible. He helped push the merger forward in 1970 by taking $3 million and agreeing to move the Colts to the American Football Conference (along with the Browns and Steelers).[3] He was also the NFL's first visible owner and its first players' owner, and envisioned revenue-generating stadiums and luxury suites before anyone else.[3]
Awards and recognition[edit]
In 1960, the City of Baltimore awarded Rosenbloom the "Man of the Year Award."[21]
Since his death, the Rams' players and coaches give the Carroll Rosenbloom Memorial Award to the team's rookie of the year.[22]
Rosenbloom was elected to the Rams' Ring of Honor.[3]
Personal life[edit]
Rosenbloom was married to Velma Anderson, his first wife, when he met his second wife, 20 years his junior, who was also married, at a party hosted by his friend Joseph Kennedy at his Palm Beach estate in 1957.[1][23][24] Rosenbloom met seven times married former lounge singer Georgia Frontiere, then a TV personality in Miami. Rosenbloom and Frontiere married in 1966, though they had been together for eight years and had two children together.[24] When Rosenbloom died, Frontiere and his five children (Dan Rosenbloom, Steve Rosenbloom, and Suzanne Rosenbloom Irwin, from his first wife, and Lucia Rosenbloom Rodriguez and Chip Rosenbloom with Frontiere) survived him. His grand-daughter (daughter of Suzanne) is married to Breck Eisner, son of Disney executive Michael Eisner.[25]
References[edit]
^ Jump up to: a b c d e f g h i j k l m n o p Boyle, Robert H. "The Pleasure of Dying on Sunday," Sports Illustrated, December 13, 1965. Retrieved January 11, 2018
^ Jump up to: a b c d Nay On The Neighs, Yea On The Baas, Sports Illustrated, Aug 14, 1972. Accessed Dec 15, 2010.
^ Jump up to: a b c d e f g h i j k The NFL’s first “Modern Owner, Dallas Sports Source", Aug 13, 2010. Accessed Dec 15, 2010.
^ Jump up to: a b Eisenberg, John. "Caroll Rosenbloom: Man of Mystery". Press Box Online. Retrieved 2010-12-01.
Jump up ^ Brulia, Tim (2004). "A CHRONOLOGY OF PRO FOOTBALL ON TELEVISION: Part 1" (PDF). The Coffin Corner. Archived from the original (PDF) on 2010-12-18. Retrieved 2010-12-01.
^ Jump up to: a b c The Rosenbloom-robbie Bowl, Sports Illustrated 2", Nov 9, 1970. Accessed Dec 15, 2010.
Jump up ^ "Hall of Fame Members - Baltimore City College Alumni Association, INC". Cityforever.org. 2011-03-25. Archived from the original on 2011-10-02. Retrieved 2011-12-06.
Jump up ^ 2017 Penn Football Fact Book – University of Pennsylvania Athletics.
^ Jump up to: a b c d e f A look at the history of the Colts Archived March 25, 2008, at the Wayback Machine., "Colts". Accessed Dec 15, 2010.
^ Jump up to: a b c d "Baltimore Colts (1953-1983)". Sports Encyclopedia. November 3, 2011. Retrieved December 15, 2010.
Jump up ^ "Don Shula". Professional Football Hall of Fame. Retrieved 2010-12-01.
Jump up ^ "Colts Fire Ewbank, Name Shula Coach". Ocala Star-Banner. Jan 9, 1963. Retrieved 2010-12-01.
^ Jump up to: a b "Rams, Colts Ownership Reportedly Will Change". Gadsden Times. Jun 23, 1972. Retrieved 2010-12-01.
^ Jump up to: a b "History". St. Louis Rams. Retrieved 2011-12-06.
Jump up ^ "Rosenbloom announced Rams move to Anaheim". St. Petersburg Times. July 26, 1978. Retrieved 2010-12-01.
Jump up ^ "Rosenbloom death not murder - coroner". Pittsburg Press. January 16, 1983. Retrieved 2010-12-01.
Jump up ^ Taaffe, William (Jan 31, 1983). "Unfounded findings". Sports Illustrated. Retrieved 2010-12-01.
^ Jump up to: a b Georgia’s Playbook, St. Louis Business Journal, Jan 26, 2003. Accessed Dec 15, 2010.
Jump up ^ "Socialite moved Rams to St. Louis, ''Los Angeles Times'', Jan 19, 2008. Accessed Dec 15, 2010". Los Angeles Times. 2008-01-19. Retrieved 2011-12-06.
Jump up ^ Stewart, Larry (January 11, 2000). "As the Rams Turned". Los Angeles Times.
Jump up ^ "Man of the Year". Baltimore Sun. December 11, 1960. Retrieved 2010-12-01.
Jump up ^ Writer, Staff (2011-01-06). "Rams Announce Their 2010 Team Awards". Football News Now. Archived from the original on 2012-03-11. Retrieved 2011-12-06.
Jump up ^ "Georgia Frontiere, Owner of the St. Louis Rams Football Team Passed Away Today - St. Louis Rams Football". Stlrams.com. Archived from the original on 2011-08-28. Retrieved 2011-12-06.
^ Jump up to: a b Goldstein, Richard (2008-01-19). "Georgia Frontiere, 80, First Female N.F.L Owner, Is Dead, ''NY Times," Jan 19, 2008. Accessed Dec 15, 2010". New York Times. Retrieved 2011-12-06.
Jump up ^ "Georgia Irwin and Breck Eisner". NY Times. June 25, 2006.
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