TARP Ends Monday, But Some Hang On
Source: The New York Times — Almost two years and $700 billion after it began, the governmentâ€™s financial bailout program officially draws to a close Monday, with the financial sector happily still standing, The Wall Street Journal reports.
The Troubled Asset Relief Program has been a bugbear for banks across the United States for months as government funds sunk into institutions also meant limitations on pay and possible interference from Washington, The Journal notes.
The Journal writes:
[W]ith Mondayâ€™s TARP expiration looming, more than 600 banks are sitting on about $65 billion in government bailout funds. The situation is frustrating federal officials who believe some larger institutions can repay the government but have chosen not to because it would require them to raise additional capital and weaken existing shareholders, according to government officials.
Treasury Secretary Timothy Geithner has been trying to â€œput TARP out of its miseryâ€ for months and the government is in the process of winding down programs and trying to recoup money already invested. Many of the programs have either ended or are shrinking.
Large banks such as Citigroup and Bank of America have already left the program, while, The Journal notes, one of the most high profile cases of the crisis, American International Group is expected to announce a repayment plan on Thursday.