Fast Facts: The End of TARP

The following data is provided by Treasury and the Congressional Budget Office (CBO)

On October 3, 2010, no further commitments can be made through TARP.   “TARP is now regarded by many experts as one of the most effective emergency programs in financial history.” – Treasury Secretary Timothy Geithner, September 22, 2010.

FACT:  TARP is the single largest deficit reduction measure in 2010, reducing federal outlays by $50 billion.  

FACT:  Over $224 billion of TARP funds have been returned to taxpayers; including $25 billion in additional income from interest, dividends, and warrant sales.

FACT:  Treasury estimates that the bank portions of TARP (Capital Purchase Program and Targeted Investment Program) will be 100% repaid and generate $13 billion profit for taxpayers. 

FACT:  In September alone, the Treasury recouped $920 million of TARP funds just from selling Hartford Financial Services Group, Inc. warrants ($706.3 million) and Lincoln National Corporation warrants ($213.7 million).

FACT:  Current CBO estimates predict the losses from TARP will be $66 billion.  This is a tenth of the original cost, and it is likely to decrease further.

FACT:  While TARP stabilized the financial system, weaknesses in the economy still remain.   A full assessment of TARP’s impact can be made when all funds have been disbursed.

For more information, please review the Congressional Oversight Panel’s most recent report: “An Assessment of TARP on the Eve of Its Expiration.”

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