Treasury Says TARP Exceeded Expectations

[sabra]

Source: CNBC/Reuters

Despite its enormous unpopularity among voters, the government's Wall Street bailout plan succeeded much more quickly and at a lower cost than expected, a U.S. Treasury report released on Tuesday said.

"Thanks to the coordinated and forceful actions of Congress, the Obama Administration, the Federal Reserve, the FDIC (Federal Deposit Insurance Corporation), and other regulatory agencies, the U.S. financial system is much stronger today than it was in the fall of 2008 and early 2009," the report concluded.

"The Troubled Asset Relief Program has succeeded faster, and at a much lower cost, than expected," the report said.

The final cost to taxpayers of what started out to be a $700 billion Wall Street bailout will be about $50 billion. An expected $20 billion return for selling the government's stake in American International Group would bring the final cost down to $30 billion, the report said.

But other losses stemming from the financial crisis and housing market crash that led to the government takeover of mortgage giants Fannie Mae and Freddie Mac could end up costing taxpayers much more. The report said the total cost of all of the government's financial interventions will amount to less than 1 percent of Gross Domestic Product, which would amount to $132 billion in a $13.2 trillion economy.

"TARP undoubtedly helped to stem the financial panic in the fall of 2008 and contributed to the stabilization of the financial system," Treasury Secretary Timothy Geithner said in a letter accompanying the report to Congress.

Read more: http://www.cnbc.com/id/39523996

[Cant trust em]

1. I love checking in on the TARP posts.

Always educational.

[Jim Sagle]

2. Wall Street hogwash!

[truthisfreedom]

3. This message needs to be screamed out over the voices of the lying rethugs who say it failed.

[bbinacan]

5. Yet, oddly enough

It was signed into law by Bush.

[MannyGoldstein]

4. What about the other $12+ trillion of taxpayer dollars

given to bankers to use to prop up their junk assets? I guess we won't hear much about that from Timmy and Ben until Grayson's Fed audit.

[Rex]

6. Well of course they do! They have the CEOs of Americas most

powerful organizations running their agenda. The Treasury should be called Wall Street B.