Treasury used the tools it had available properly and effectively
In case you were wondering, the U.S. Treasury says of the Troubled Asset Relief Program, or TARP, put in place by former U.S. Treasury Secretary Henry Paulson, that it had turned out less expensive than originally feared and even made money off bank investments, according to a statement put out by the Treasury today:
At the time, Treasury used the tools it had available properly and effectively to stem the deepening financial crisis, at a fraction of the cost originally predicted. CBO now estimates that costs will be 90 percent lower than the original $700B allocated to TARP, and taxpayers stand to earn a profit on the bank program. These efforts helped stabilize the financial system and provided critical assistance to struggling homeowners.
The upbeat view of things contrasts with the Congressional Oversight Panel’s dim view of the TARP put out earlier today. Treasury also notes that no TARPs will be needed in future because the
however massive financial reform legislation passed this summer has mechanisms for shutting down large banks at no cost to taxpayers.
