Geithner Gives TARP an Extension
The Troubled Asset Relief Program, otherwise known as TARP, was scheduled to expire at the end of this year, but Treasury Secretary Timothy Geithner told Congress on Wednesday that it'll stick around until October 2010, partly as a precautionary measure in case of economic emergency and partly to help struggling homeowners, banks and small businesses.
The Troubled Asset Relief Program, otherwise known as TARP, was scheduled to expire at the end of this year, but Treasury Secretary Timothy Geithner told Congress on Wednesday that it’ll stick around until October 2010, partly as a precautionary measure in case of economic emergency and partly to help struggling homeowners, banks and small businesses. –KA
Dig, Root, GrowThe New York Times:
As Mr. Geithner outlined, Treasury has already all but shut down the parts of TARP that the public most associates with the financial bailout — one to guarantee money market funds, and the Capital Purchase Program to invest in troubled banks.
The money market fund, he reported, generated $1.2 billion in fees after guaranteeing more than $3 trillion in assets. The bank program loaned about $245 billion, $7 billion of that since the Obama administration took office. By the end of 2010, Treasury expects $175 billion to be repaid, with interest. It also is earning returns on the sale of bank warrants held as collateral.
Treasury officials have said that ultimately they expect taxpayers to lose no more than $140 billion — $200 billion less than estimated in August. Most losses will be from payments for averting foreclosures and for bailing out the insurance giant American International Group.
In 2010, Mr. Geithner said, TARP will focus on efforts that were not part of its original mission: a home-loan modification program, an initiative providing capital to small banks and the latest plans, which Mr. Obama highlighted in his economic speech, to get loans to small businesses.
This year, we’re all on shaky ground, and the need for independent journalism has never been greater. A new administration is openly attacking free press — and the stakes couldn’t be higher.
Your support is more than a donation. It helps us dig deeper into hidden truths, root out corruption and misinformation, and grow an informed, resilient community.
Independent journalism like Truthdig doesn't just report the news — it helps cultivate a better future.
Your tax-deductible gift powers fearless reporting and uncompromising analysis. Together, we can protect democracy and expose the stories that must be told.
This spring, stand with our journalists.
Dig. Root. Grow. Cultivate a better future.
Donate today.
Economic Justice
Elizabeth Warren (D-Massachusetts) and J.D. Vance (R-Ohio) have joined forces in a rare bipartisan effort to make top executives pay for their mistakes.
Lessons learned from the 2008 financial crisis show that taxpayer-funded blank checks to institutions do nothing to help those struggling
Because our banks aren't nationalized, its inability to work with Congress has resulted in another botched attempt at crisis management.
Its forced choice to bankroll hedge funds and other speculative ventures in repo market comes at a price to the middle class.
The Massachusetts senator and Democratic presidential contender wants to make it harder for big banks to prey on consumers.
The threat of a U.S. technology company taking up the model set by China's WeChat Pay and Alipay may now be materializing.
You need to be a supporter to comment.
There are currently no responses to this article.
Be the first to respond.