View source for Troubled Asset Relief Program

{{short description|US government program}}
{{About|the Treasury fund|the legislative bill and subsequent law|Public Law 110-343|the legislative history and the events leading to the law|Emergency Economic Stabilization Act of 2008}}
{{Use mdy dates|date=March 2024}}
The '''Troubled Asset Relief Program''' ('''TARP''') is a program of the [[United States government]] to purchase [[toxic asset]]s and equity from financial institutions to strengthen its financial sector that was passed by Congress and signed into law by [[U.S. President|President]] [[George W. Bush]]. It was a component of the government's measures in 2009 to address the [[subprime mortgage crisis]].

The TARP originally authorized expenditures of $700 billion. The [[Emergency Economic Stabilization Act of 2008]] created the TARP. The [[Dodd–Frank Wall Street Reform and Consumer Protection Act]], signed into law in 2010, reduced the amount authorized to $475 billion (approximately ${{Format price|{{Inflation|index=US-GDP|value=475000000000|start_year=2010}}}} in {{Inflation/year|US-GDP}}). By October 11, 2012, the [[Congressional Budget Office]] (CBO) stated that total disbursements would be $431 billion, and estimated the total cost, including grants for mortgage programs that have not yet been made, would be $24 billion.<ref>{{cite web|url=http://www.cbo.gov/publication/43662 |title=CBO &#124; Report on the Troubled Asset Relief Program—October 2012 |date=October 11, 2012 |publisher=Cbo.gov |access-date=November 4, 2013}}</ref>

On December 19, 2014, the [[U.S. Treasury]] sold its remaining holdings of [[Ally Financial]], essentially ending the program. Through the Treasury, the U.S. government actually booked $15.3 billion in profit, as it earned $441.7 billion on the $426.4 billion invested.<ref name="wsj1214" /><ref>{{Cite web |last=Isidore |first=Chris |date=December 19, 2014 |title=U.S. ends TARP with $15.3 billion profit (Although the Government arguably did not profit from the transaction considering that the program was funded by deficit spending, with an interest rate of between 2% to nearly 4% during 2008 to 2009 the cost to service the debt the Government incurred to fund the program would be at least $8 to $16+ billion a year) |url=https://money.cnn.com/2014/12/19/news/companies/government-bailouts-end/index.html |access-date=March 10, 2023 |website=CNNMoney}}</ref>

==Purpose==
TARP allowed the [[United States Department of the Treasury]] to purchase or insure up to $700 billion of "troubled assets," defined as "(A) residential or commercial obligations will be bought, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress".<ref name="cbo.gov">{{cite web|url=http://www.cbo.gov/doc.cfm?index=9961&type=1 |title=CBO &#124; The Troubled Asset Relief Program: Report on Transactions Through December 31, 2008 |publisher=Cbo.gov |date=January 16, 2009 |access-date=November 4, 2013}}</ref>

In short, this allows the Treasury to purchase illiquid, difficult-to-value assets from banks and other financial institutions. The targeted assets can be [[collateralized debt obligation]]s, which were sold in a booming market until 2007, when they were hit by widespread [[foreclosure]]s on the underlying loans. TARP was intended to improve the liquidity of these assets by purchasing them using secondary market mechanisms, thus allowing participating institutions to stabilize their balance sheets and avoid further losses.

TARP does not allow banks to recoup losses already incurred on troubled assets, but officials expect that once trading of these assets resumes, their prices will stabilize and ultimately increase in value, resulting in gains to both participating banks and the Treasury itself. The concept of future gains from troubled assets comes from the hypothesis in the financial industry that these assets are oversold, as only a small percentage of all mortgages are in default, while the relative fall in prices represents losses from a much higher default rate.

The [[Emergency Economic Stabilization Act of 2008]] (EESA) requires financial institutions selling assets to TARP to issue equity warrants (a type of security that entitles its holder to purchase shares in the company issuing the security for a specific price), or equity or senior debt securities (for non-publicly listed companies) to the Treasury. In the case of warrants, the Treasury will only receive warrants for non-voting shares, or will agree not to vote the stock. This measure was designed to protect the government by giving the Treasury the possibility of profiting through its new ownership stakes in these institutions. Ideally, if the financial institutions benefit from government assistance and recover their former strength, the government will also be able to profit from their recovery.<ref name="EESA 2008">{{cite web|url=http://www.uiowa.edu/ifdebook/issues/bailouts/eesa.shtml |archive-url=https://web.archive.org/web/20090110184334/http://www.uiowa.edu/ifdebook/issues/bailouts/eesa.shtml |archive-date=January 10, 2009 |title=Emergency Economic Stabilization Act of 2008 |access-date=November 4, 2013}}</ref>

Another important goal of TARP was to encourage banks to resume lending again at levels seen before the crisis, both to each other and to consumers and businesses. If TARP can stabilize bank capital ratios, it should theoretically allow them to increase lending instead of hoarding cash to cushion against future unforeseen losses from troubled assets. Increased lending equates to "loosening" of credit, which the government hopes will restore order to the financial markets and improve investor confidence in financial institutions and the markets. As banks gain increased lending confidence, the interbank lending interest rates (the rates at which the banks lend to each other on a short-term basis) should decrease, further facilitating lending.<ref name="EESA 2008"/>

TARP will operate as a "revolving purchase facility." The Treasury will have a set spending limit, $250 billion at the start of the program, with which it will purchase the assets and then either sell them or hold the assets and collect the [[Coupon (bond)|coupons]]. The money received from sales and [[Coupon (bond)|coupons]] will go back into the pool, facilitating the purchase of more assets. The initial $250 billion could be increased to $350 billion upon the [[President of the United States|president]]'s certification to [[United States Congress|Congress]] that such an increase was necessary.<ref name= 'Senate-EESA-Summary'>
[https://web.archive.org/web/20081004201320/http://banking.senate.gov/public/_files/latestversionEESASummary.pdf Summary of the Emergency Economic Stabilization Act of 2008] United States Senate Committee on Banking, Housing and Urban Affairs. (Retrieved October 2, 2008)
</ref> The remaining $350 billion may be released to the Treasury upon a written report to Congress from the Treasury with details of its plan for the money. Congress then had 15 days to vote to disapprove the increase before the money will be automatically released.<ref name="EESA 2008"/> Privately held mortgages would be eligible for other incentives, including a favorable loan modification for five years.<ref>U.S. Dept. of Treasury, MHA Guidelines</ref>

The authority of the [[United States Department of the Treasury]] to establish and manage TARP under a newly created [[Office of Financial Stability]] became law October 3, 2008, the result of an initial proposal that ultimately was passed by Congress as [[H.R. 1424]], enacting the [[Emergency Economic Stabilization Act of 2008]] and several other acts.<ref name='AFP-Signed into law-2008-10-03'>{{cite news|title=Economic rescue swiftly signed into law|url=http://afp.google.com/article/ALeqM5h40yrrEcqeJEeVRgcrDXB7egDo2A|agency=[[Agence France-Presse|AFP]]|date=October 3, 2008}}</ref><ref name = 'Slate-Gross-2008-10-01' >{{cite news|url=http://www.slate.com/id/2201340/|title=How the Bailout Is Like a Hedge Fund |first= Daniel|last=Gross|date=October 1, 2008|work= Slate}}</ref>

On October 8, the British announced their [[2008 United Kingdom bank rescue package|bank rescue package]] consisting of funding, debt guarantees and infusing capital into banks via preferred stock. This model was closely followed by the rest of Europe, as well as the U.S Government, who on the October 14 announced a $250bn (£143bn) [[Capital Purchase Program]] to buy stakes in a wide variety of banks in an effort to restore confidence in the sector. The money came from the $700bn Troubled Asset Relief Program.<ref name=Langley2015>{{cite book|last1=Langley|first1=Paul|title=Liquidity Lost: The Governance of the Global Financial Crisis|date=2015|publisher=Oxford University Press|isbn=978-0199683789|pages=82–86|url=https://books.google.com/books?id=FhGaBQAAQBAJ&pg=PA82}}</ref><ref name="NYT 2008">{{cite news|title=Gordon Does Good|url=https://www.nytimes.com/2008/10/13/opinion/13krugman.html?_r=0|access-date=February 5, 2016|work=The New York Times|date=October 12, 2008}}</ref>

==Timeline of changes to the TARP==

To qualify for this program, the Treasury required participating institutions to meet certain criteria, including: "(1) ensuring that incentive compensation for senior executives does not encourage unnecessary and excessive risks that threaten the value of the financial institution; (2) required [[clawback]] of any bonus or incentive compensation paid to a senior executive based on statements of earnings, gains or other criteria that are later proven to be materially inaccurate; (3) prohibition on the financial institution from making any [[golden parachute]] payment to a senior executive based on the Internal Revenue Code provision; and (4) agreement not to deduct for tax purposes executive compensation in excess of $500,000 for each senior executive".<ref>{{cite web|url=http://www.treas.gov/press/releases/hp1207.htm |archive-url=https://web.archive.org/web/20081014212357/http://www.treas.gov/press/releases/hp1207.htm |archive-date=October 14, 2008 |title=HP-1207: Treasury Announces TARP Capital Purchase Program Description |access-date=November 4, 2013}}</ref> The Treasury also bought preferred stock and warrants from hundreds of smaller banks, using the first $250 billion allotted to the program.<ref name='NYT=Landler-2008-10-14'>{{cite news|first1=Mark|last1=Landler|first2=Eric|last2=Dash|title=Paulson Says Banks Must Deploy New Capital: Drama Behind a $250 Billion Banking Deal|date=October 14, 2008|url=https://www.nytimes.com/2008/10/15/business/economy/15bailout.html |work=[[The New York Times]]|access-date=October 14, 2008}}</ref>

The first allocation of the TARP money was primarily used to buy preferred stock, which was similar to debt in that it gets paid before common equity shareholders. This had led some economists to argue that the plan may be ineffective in inducing banks to lend efficiently.<ref>{{cite journal|journal=SSRN|ssrn=1321666|title=Common (Stock) Sense about Risk-Shifting and Bank Bailouts|publisher=SSRN.com|date=December 29, 2009|last1=Wu|first1=Yan Wendy|last2=Wilson|first2=Linus}}</ref><ref>{{cite journal|journal=SSRN|ssrn=1336288|title=Debt Overhang and Bank Bailouts|publisher=SSRN.com|date=February 2, 2009|last1=Wilson|first1=Linus}}</ref>

In the original plan, the government would buy troubled (also known as 'toxic') assets in insolvent banks and then sell them at auction to private investor and/or companies. This plan was scratched when United Kingdom's Prime Minister [[Gordon Brown]] came to the [[White House]] for an international summit on the global credit crisis.<ref>{{cite news| url =https://online.wsj.com/news/articles/SB10001424052748703376504575492022731937884|title= Gordon Brown and Crisis Lessons Worth Learning |author= Iain Martin|newspaper=[[Wall Street Journal]] |date = September 15, 2010}}</ref> Prime Minister Brown, in an attempt to mitigate the credit squeeze in England, planned [[2008 United Kingdom bank rescue package|a package of three measures]] consisting of funding, debt guarantees and infusing capital into banks via preferred stock.<ref name=Langley2015/><ref name="NYT 2008"/> The objective was to directly support banks' [[solvency]] and funding; in some economists' view, effectively nationalizing many banks. This plan seemed attractive to the Treasury Secretary in that it was relatively easier and seemingly boosted lending more quickly. The first half of the asset purchases may not be effective in getting banks to lend again because they were reluctant to risk lending as before with low lending standards. To make matters worse, overnight lending to other banks came to a relative halt because banks did not trust each other to be prudent with their money.<ref>{{Citation |title=Panic: The Untold Story of the 2008 Financial Crisis {{!}} Full VICE Special Report {{!}} HBO | date=May 2019 |url=https://www.youtube.com/watch?v=QozGSS7QY_U |language=en |access-date=May 12, 2022}}</ref>

On November 12, 2008, Paulson indicated that reviving the securitization market for consumer credit would be a new priority in the second allotment.<ref>{{cite web|url=http://www.treasury.gov/press-center/press-releases/Pages/hp1265.aspx |title=Remarks by Secretary Henry M. Paulson, Jr. on Financial Rescue Package and Economic Update |publisher=[[Treasury.gov]] |date=November 14, 2011 |access-date=December 10, 2011}}</ref><ref>{{cite news|last=Brinsley |first=John |url=https://www.bloomberg.com/apps/news?pid=20601087&sid=aoD4QebIb_Fo&refer=home |title=Paulson Shifts Focus of Rescue to Consumer Lending |publisher=Bloomberg.com |date=November 12, 2008 |access-date=December 10, 2011}}</ref>

<!--
List of people at the "demand" meeting of October 13 -- Expand into prose and explain the coerced agreement: see cite --
The previous day, on October 13, Bankers met with Treasury Secretary Paulson, along with Ben S. Bernanke, chairman of the Federal Reserve; Timothy F. Geithner, president of the Federal Reserve Bank of New York; Federal Reserve Governor Kevin M. Warsh; the chairman of the FDIC, Sheila C. Bair; and the comptroller of the currency, John C. Dugan. The bankers included Kenneth D. Lewis of Bank of America, Jamie Dimon of JPMorgan Chase, Lloyd C. Blankfein of Goldman Sachs, John J. Mack of Morgan Stanley, Vikram S. Pandit of Citigroup, Robert Kelly of Bank of New York Mellon and John A. Thain of Merrill Lynch.

Paulson demanded in the joint conference that the CEO of each bank agree to take an equity stake from the Treasury, and that they could not depart until each had signed an agreement to do so on behalf of their bank.<ref name='NYT=Landler-2008-10-14'/>

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On December 19, 2008, President Bush used his executive authority to declare that TARP funds could be spent on any program that Paulson,<ref>{{cite news| url=https://www.nytimes.com/2008/09/21/business/21draftcnd.html | work=The New York Times | title=Text of Draft Proposal for Bailout Plan | date=September 21, 2008}}</ref> deemed necessary to alleviate the [[2008 financial crisis]]. On December 31, 2008, the Treasury issued a report reviewing Section 102, the Troubled Assets Insurance Financing Fund, also known as the "Asset Guarantee Program." The report indicated that the program would likely not be made "widely available."<ref>{{cite web|url=http://www.financialstability.gov/docs/AGP/sec102ReportToCongress.pdf |archive-url=https://web.archive.org/web/20090429194236/http://www.financialstability.gov/docs/AGP/sec102ReportToCongress.pdf |archive-date=April 29, 2009 |title=Report to Congress Pursuant to Section 102 of the Emergency Economic Stabilization Act |access-date=November 4, 2013}}</ref>

On January 15, 2009, the Treasury issued interim final rules for reporting and record keeping requirements under the executive compensation standards of the [[Capital Purchase Program]] (CPP).<ref name="cop.senate.gov">{{cite web|url=http://cop.senate.gov/documents/cop-020609-report.pdf |title=February Oversight Report : February 6, 2009 |publisher=Web.archive.com |access-date=November 4, 2013 |url-status=unfit |archive-url=https://web.archive.org/web/20090207100935/http://cop.senate.gov/documents/cop-020609-report.pdf |archive-date=February 7, 2009 }}</ref> Six days later, the Treasury announced new regulations regarding disclosure and mitigation of conflicts of interest in its TARP contracting.<ref>[TARP Conflicts of Interest, Interim Rule, 74 Fed. Reg. 3431-3436 TARP Conflicts of Interest, Interim Rule, 74 Fed. Reg. 3431-3436]</ref>

On February 5, 2009, the Senate approved changes to the TARP that prohibited firms receiving TARP funds from paying bonuses to their 25 highest-paid employees. The measure was proposed by [[Christopher Dodd]] of Connecticut as an amendment to the $900 billion economic stimulus act then waiting to be passed.<ref name='Reuters-2009-02-05'>
{{cite news | title= U.S. Senate votes to ban executive bonuses | date= February 5, 2009 | work= Reuters | url = http://uk.reuters.com/article/marketsNewsUS/idUKN0540541220090206 | archive-url = https://web.archive.org/web/20090209175653/http://uk.reuters.com/article/marketsNewsUS/idUKN0540541220090206 | url-status = dead | archive-date = February 9, 2009 | access-date =February 9, 2009 | first=Thomas | last=Ferraro}}
</ref> On February 10, the newly confirmed Secretary of the Treasury [[Timothy Geithner]] outlined his plan to use the remaining $300 billion or so in TARP funds. He intended to direct $50 billion towards foreclosure mitigation and use the rest to help fund private investors to buy toxic assets from banks. Nevertheless, this highly anticipated speech coincided with a nearly 5 percent drop in the S&P 500 and was criticized for lacking details.<ref name='Deborah Solomon'>{{cite news | title= Market Pans Bank Rescue Plan | date= February 11, 2009 | work= The Wall Street Journal | url = https://www.wsj.com/articles/SB123427167262568141 | access-date =February 12, 2009 | first=Deborah | last=Solomon}}</ref>

Geithner announced on March 23, 2009, a [[Public-Private Investment Program]] (P-PIP) to buy [[toxic assets]] from banks' balance sheets. The major stock market indexes in the United States rallied on the day of the announcement rising by over six percent with the shares of bank stocks leading the way.<ref name='Edmund L. Andrews and Eric Dash'>{{cite news | title= U.S. Expands Plan to Buy Banks' Troubled Assets | date= March 24, 2009 | work= The New York Times | url = https://www.nytimes.com/2009/03/24/business/economy/24bailout.html | access-date =February 12, 2009 | first1=Edmund L. | last1=Andrews | first2=Eric | last2=Dash}}</ref> P-PIP has two primary programs. The Legacy Loans Program will attempt to buy residential loans from bank's balance sheets. The [[Federal Deposit Insurance Corporation]] (FDIC) will provide non-recourse loan guarantees for up to 85 percent of the purchase price of legacy loans. Private sector asset managers and the U.S. Treasury will provide the remaining assets. The second program was called the legacy securities program, which would buy [[Residential mortgage-backed security|residential mortgage backed securities]] (RMBS) that were originally rated AAA and [[Commercial mortgage-backed security|commercial mortgage-backed securities]] (CMBS) and [[Asset-backed security|asset-backed securities]] (ABS) which were rated AAA. The funds would come in many instances in equal parts from the U.S. Treasury's TARP monies, private investors, and from loans from the Federal Reserve's [[Term Asset-Backed Securities Loan Facility]] (TALF). The initial size of the Public Private Investment Partnership was projected to be $500 billion.<ref>{{cite web|url=http://www.treas.gov/press/releases/reports/ppip_fact_sheet.pdf |title=FACT SHEET PUBLIC-PRIVATE INVESTMENT PROGRAM|publisher=U.S. Treasury |date=March 23, 2009 |access-date=March 26, 2009|archive-url=https://web.archive.org/web/20090324012024/http://www.treas.gov/press/releases/reports/ppip_fact_sheet.pdf|archive-date=March 24, 2009}}</ref> Economist and Nobel Prize winner [[Paul Krugman]] had been very critical of this program arguing the non-recourse loans lead to a hidden subsidy that will be split by asset managers, banks' shareholders and creditors.<ref>{{cite news| first = Paul | last = Krugman | url=https://krugman.blogs.nytimes.com/2009/03/23/geithner-plan-arithmetic/ |title=Geithner plan arithmetic|work=The New York Times |date=March 23, 2009 |access-date=March 27, 2009}}</ref> Banking analyst [[Meredith Whitney]] argued that banks will not sell bad assets at fair market values because they are reluctant to take asset write downs.<ref name='John Carney'>
{{cite news | title= Meredith Whitney: A Bad Bank Won't Save Banks | date= January 29, 2009 | publisher= businessinsider.com | url = http://www.businessinsider.com/2009/1/meredith-whitney-a-bad-bank-wont-save-us | access-date =March 27, 2009 }}</ref> Economist Linus Wilson,<ref>{{cite web |url=http://www.linuswilson.com/bankbailouts.html |title=Welcome to nginx |access-date=November 7, 2011 |url-status=dead |archive-url=https://archive.today/20130127222248/http://www.linuswilson.com/bankbailouts.html |archive-date=January 27, 2013 }}</ref> a frequent commenter on TARP related issues, also pointed to excessive misinformation and erroneous analysis surrounding the U.S. toxic asset auction plan.<ref>{{cite web|url=http://econjwatch.org/articles/troubling-research-on-troubled-assets-charles-zheng-on-the-us-toxic-asset-auction-plan |title=Troubling Research on Troubled Assets: Charles Zheng on the U.S. Toxic Asset Auction Plan · Econ Journal Watch: auctions, bailout, banking, CMBS, CDOs, EESA, Emergency Economic Stabilization Act, lending, Legacy Loans Program, Legacy Securities Program, mortgages, nonrecourse loans, Public-Private Investment Partnership, PPIP, TALF, Term Asset Lending Facility, Troubled Asset |date=January 17, 2011 |publisher=Econjwatch.org |access-date=November 4, 2013}}</ref> Removing toxic assets would also reduce the volatility of banks' stock prices. This lost [[Volatility (finance)|volatility]] would hurt the stock price of distressed banks. Therefore, such banks would only sell toxic assets at above market prices.<ref>{{cite journal|journal=SSRN|ssrn=1343625 |title=The Put Problem with Buying Toxic Assets |publisher=SSRN.com |date=February 14, 2009|last1=Wilson |first1=Linus |doi=10.2139/ssrn.1343625 }}</ref>

On April 19, 2009, the [[Obama administration]] outlined the conversion of the TARP loans to [[common stock]].<ref>{{cite news|url=https://www.nytimes.com/2009/04/20/business/20bailout.html |title=U.S. May Convert Banks' Bailouts to Equity Share |work=The New York Times |date=April 19, 2009 |access-date=April 22, 2009 | first=Edmund L. | last=Andrews}}</ref>

==Administrative structure==
{{Main|Oversight of the Troubled Asset Relief Program}}
The program was run by the Treasury's new [[Office of Financial Stability]]. According to a speech made by [[Neel Kashkari]],<ref>{{cite web|url=http://www.accountability-central.com/single-view-default/article/treasury-update-on-implementation-of-troubled-asset-relief-program-tarp-before-institute-of-intern/?tx_ttnewsbackPid=1&cHash=8702938e7e |title=Treasury Update on Implementation of Troubled Asset Relief Program (TARP) before Institute of International |publisher=Accountability-central.com |access-date=November 4, 2013}}</ref> the fund would be split into the following administrative units:

<blockquote>
#[[Mortgage-backed securities]] purchase program: This team is identifying which troubled assets to purchase, from whom to buy them and which purchase mechanism will best meet our policy objectives. Here, we are designing the detailed auction protocols and will work with vendors to implement the program.
#Whole loan purchase program: Regional banks are particularly clogged with whole residential mortgage loans. This team is working with bank regulators to identify which types of loans to purchase first, how to value them, and which purchase mechanism will best meet our policy objectives.
#Insurance program: We are establishing a program to insure troubled assets. We have several innovative ideas on how to structure this program, including how to insure mortgage-backed securities as well as whole loans. At the same time, we recognize that there are likely other good ideas out there that we could benefit from. Accordingly, on Friday we submitted to the Federal Register a public Request for Comment to solicit the best ideas on structuring options. We are requiring responses within fourteen days so we can consider them quickly, and begin designing the program.
#[[Stock|Equity]] purchase program: We are designing a standardized program to purchase equity in a broad array of financial institutions. As with the other programs, the equity purchase program will be voluntary and designed with attractive terms to encourage participation from healthy institutions. It will also encourage firms to raise new private capital to complement public capital.
#Homeownership preservation: When we purchase mortgages and mortgage-backed securities, we will look for every opportunity possible to help homeowners. This goal is consistent with other programs – such as HOPE NOW – aimed at working with borrowers, counselors and servicers to keep people in their homes. In this case, we are working with the Department of Housing and Urban Development to maximize these opportunities to help as many homeowners as possible, while also protecting the government.
#[[Executive compensation]]: The law sets out important requirements regarding executive compensation for firms that participate in the TARP. This team is working hard to define the requirements for financial institutions to participate in three possible scenarios: One, an auction purchase of troubled assets; two, a broad equity or direct purchase program; and three, a case of an intervention to prevent the impending failure of a systemically significant institution.
#[[Regulatory compliance|Compliance]]: The law establishes important oversight and compliance structures, including establishing an Oversight Board, on-site participation of the General Accounting Office and the creation of a Special Inspector General, with thorough reporting requirements.</blockquote>

[[Eric Thorson]] was the [[Inspector General]] of the [[US Department of the Treasury]] and was responsible for the oversight of the TARP but expressed concerns about the difficulty of properly overseeing the complex program in addition to his regular responsibilities. Thorson called oversight of TARP a "mess" and later clarified this to say "The word 'mess' was a description of the difficulty my office would have in providing the proper level of oversight of the TARP while handling its growing workload, including conducting audits of certain failed banks and thrifts at the same time that efforts are underway to nominate a special inspector general."<ref>Eric Thorson. [https://www.washingtonpost.com/wp-dyn/content/article/2008/11/20/AR2008112003484.html "Workload, Not TARP, Is a 'Mess'"]. ''The Washington Post''. November 21, 2008.</ref> [[Neil Barofsky]], an [[Assistant United States Attorney]] for the [[United States District Court for the Southern District of New York|Southern District of New York]], was nominated to be the first Special Inspector General for the Troubled Asset Relief Program (SIGTARP). He was confirmed by the Senate on December 8, 2008, and was sworn into office on December 15, 2008. He stepped down from the post on March 30, 2011.<ref>{{cite news| url=https://dealbook.nytimes.com/2011/02/14/bailout-inspector-barofsky-resign/ | work=The New York Times | first=Ben | last=Protess | title=Barofsky Stepping Down as Watchdog of TARP | date=February 14, 2011}}</ref>

The Treasury retained the [[law firms]] of [[Squire, Sanders & Dempsey]] and [[Hughes, Hubbard & Reed]] to assist in the administration of the program.<ref>{{cite news |last=Rucker |first=Patrick |title=Two law firms to help U.S. Treasury dole out aid |work=Reuters |date=November 3, 2008 |url=https://www.reuters.com/article/marketsNews/idUSN0335583020081103 |access-date=November 4, 2008}}</ref> Accounting and internal controls support services have been contracted from [[PricewaterhouseCoopers]] and [[Ernst and Young]] under the Federal Supply Schedule.<ref>US Government Accountability Office Report GAO-09-161: Troubled Asset Relief Program: Additional Actions Needed to Better Ensure Integrity, Accountability, and Transparency. December 2, 2008.</ref>

==Participation criteria==
The Act's criterion for participation stated that "financial institutions" will be included in TARP if they are "established and regulated" under the laws of the United States and if they have "significant operations" in the United States. The Treasury would need to define what institutions will be included under the term "financial institution" and what will constitute "significant operations".<ref name="EESA 2008"/> Companies that sell their bad assets to the government must have provided [[Warrant (finance)|warrant]]s so that the government would benefit from future growth of the companies.<ref name='Senate-EESA-Summary'/> Certain institutions seemed to be guaranteed participation. These included: U.S. banks, U.S. branches of a foreign bank, U.S. savings banks or credit unions, U.S. broker-dealers, U.S. insurance companies, U.S. mutual funds or other U.S. registered investment companies, tax-qualified U.S. employee retirement plans, and bank holding companies.<ref name="EESA 2008"/>

The President was to submit a law to cover government losses on the fund, using "a small, broad-based fee on all financial institutions".<ref name='Senate-EESA-Summary'/> To participate in the [[bailout]] program, "...companies will lose certain tax benefits and, in some cases, must limit [[executive pay]]. In addition, the bill limits '[[golden parachute]]s' and requires that unearned bonuses be returned."<ref name='Senate-EESA-Summary'/> The fund had an Oversight Board so that the [[U.S. Treasury]] cannot act in an arbitrary manner. There was also an [[inspector general]] to protect against waste, fraud and abuse.<ref name='Senate-EESA-Summary'/>

[[CAMELS ratings]] (US supervisory ratings used to classify the nation's 8,500 banks) were being used by the [[United States]] government in response to the [[2008 financial crisis]] to help it decide which banks to provide special help for and which to not as part of its capitalization program authorized by the Emergency Economic Stabilization Act of 2008. It was being used to classify the nation's 8,500 banks into five categories, where a ranking of 1 means they are most likely to be helped and a 5 most likely to not be helped. Regulators were applying a short list of criteria based on a secret ratings system they use to gauge this.<ref name=NYT>{{cite web|last=Dash|first=Eric|url=https://www.nytimes.com/2008/11/01/business/01bank.html|title=U.S. Said to Be Using Loose Rules in Bank Aid|work=The New York Times|date=October 31, 2008}}</ref>

''[[The New York Times]]'' stated: "The criteria being used to choose who gets money appears to be setting the stage for consolidation in the industry by favoring those most likely to survive" because the criteria appear to favor the financially best off banks and banks [[Too-big-to-fail|too big to let fail]]. Some lawmakers are upset that the capitalization program will end up culling banks in their districts.<ref name=NYT/> However, ''[[The Wall Street Journal]]'' suggested that some lawmakers are actively using TARP to funnel money to weak regional banks in their districts.<ref>Paletta, Damian; Enrich, David. [https://www.wsj.com/articles/SB123258284337504295 "Political Interference Seen in Bank Bailout Decisions"]. ''The Wall Street Journal''. January 22, 2009.</ref> Academic studies have found that banks and credit unions located in the districts of key Congress members had been more likely to win TARP money.<ref>{{cite journal|title=Political Influence and TARP Investments in Credit Unions by Elisabeta Pana, Linus Wilson :: SSRN |doi=10.2139/ssrn.1698945 |year = 2012|last1 = Pana|first1 = Elisabeta|last2=Wilson |first2=Linus |s2cid=154700462 }}</ref>

Known aspects of the capitalization program "suggest that the government may be loosely defining what constitutes healthy institutions. [... Banks] that have been profitable over the last year are the most likely to receive capital. Banks that have lost money over the last year, however, must pass additional tests. [...] They are also asking if a bank has enough capital and reserves to withstand severe losses to its construction loan portfolio, nonperforming loans and other troubled assets."<ref name=NYT/> Some banks received capital with the understanding the banks would try to find a merger partner. To receive capital under the program banks are also "required to provide a specific business plan for the next two or three years and explain how they plan to deploy the capital".<ref name=NYT/>

==Eligible assets and asset valuation==
TARP allowed the Treasury to purchase both "troubled assets" and any other asset the purchase of which the Treasury determined was "necessary" to further economic stability. Troubled assets included real estate and mortgage-related assets and securities based on those assets. This included both the mortgages themselves and the various financial instruments created by pooling groups of mortgages into one security to be bought on the market. This category probably included foreclosed properties as well.<ref name="EESA 2008"/>

Real estate and mortgage-related assets (and securities based on those kinds of assets) were eligible if they originated (that is, were created) or were issued on or before March 14, 2008, the date of the Bear Stearns bailout.<ref name="EESA 2008"/>

One of the more difficult issues that the Treasury faced in managing TARP was the pricing of the troubled assets. The Treasury had to find a way to price extremely complex and sometimes unwieldy instruments for which a market did not exist. In addition, the pricing had to strike a balance between efficiently using public funds provided by the government and providing adequate assistance to the financial institutions that need it.<ref name="EESA 2008"/>

The Act encouraged the Treasury to design a program using market mechanisms to the extent possible. This had led to the expectation that the Treasury would use a [[reverse auction]] to price assets. Theoretically, the system would create a market price from bidders that would want to sell at the highest possible price, but also be able to make a sale, therefore the price must set a low enough price to be competitive. The Treasury was required to publish its methods for pricing, purchasing, and valuing troubled assets no later than two days after the purchase of their first asset.<ref name="EESA 2008"/> The Congressional Budget Office (CBO) used procedures similar to those specified in the Federal Credit Reform Act (FCRA) to value assets purchased under the TARP.<ref name="cbo.gov"/>

In a report dated February 6, 2009, the Congressional Oversight Panel concluded that the Treasury paid substantially more for the assets it purchased under the TARP than their then-current market value. The COP found the Treasury paid $254 billion, for which it received assets worth approximately $176 billion, for a shortfall of $78 billion. The COP's valuation analysis assumed that "securities similar to those issued under the TARP were trading in the capital markets at fair values" and employed multiple approaches to cross-check and validate the results. The value was estimated for each security as of the time immediately following the announcement by Treasury of its purchase. For example, the COP found that the Treasury bought $25 billion of assets from Citigroup on October 14, 2008, however, the actual value was estimated to be $15.5, creating a 38 percent (or $9.5 billion) subsidy.<ref name="cop.senate.gov"/>

==Protection of government investment==
#'''Equity stakes'''
##The Act requires financial institutions selling assets to TARP to issue equity warrants (a type of security that entitles its holder to purchase shares in the company issuing the security for a specific price), or equity or senior debt securities (for non-publicly listed companies) to the Treasury. In the case of warrants, the Treasury will only receive warrants for non-voting shares, or will agree not to vote the stock. This measure is designed to protect the government by giving the Treasury the possibility of profiting through its new ownership stakes in these institutions. Ideally, if the financial institutions benefit from government assistance and recover their former strength, the government will also be able to profit from their recovery.<ref name="EESA 2008"/>
#'''Limits on executive compensation'''
##The Act sets some limits on the compensation of the five highest-paid executives at companies that elect to participate significantly in TARP. The Act treats companies that participate through the auction process differently from those that participate through direct sale (that is, without a bidding process).
###'''Companies who sell more than $300 million in assets through an auction process''' are prohibited from signing new "golden parachute" contracts (employment contracts that provide for large payments upon termination) with any future executives. It will also place a $500,000 limit on annual tax deductions for payment of each executive, as well as a deduction limit on severance benefits for any golden parachutes already in place.<ref name="EESA 2008"/>
###'''Companies in which the Treasury acquires equity because of direct purchases''' must meet tougher standards to be established by the Treasury. These standards will require the companies to eliminate compensation structures that encourage "unnecessary and excessive" risk-taking by executives, provide for claw-back (forced repayment of bonuses in the event of a post-payment determination that the bonuses were paid on the basis of false data) of bonuses already paid to senior executives based on financial statements later proven to be inaccurate, and prohibit payment of previously established golden parachutes.<ref name="EESA 2008"/>
#'''Recoupment'''
##This provision was a big factor in the eventual passage of the EESA. It gives the government the opportunity to "be repaid". The recoupment provision requires the Director of the Office of Management and Budget to submit a report on TARP's financial status to Congress five years after its enactment. If TARP has not been able to recoup its outlays through the sale of the assets, the Act requires the President to submit a plan to Congress to recoup the losses from the financial industry. Theoretically, this prevents TARP from adding to the national debt. The use of the term "financial industry" in the provision leaves open the possibility that such a plan would involve the entire financial sector rather than only those institutions that availed themselves of TARP.<ref name="EESA 2008"/>
#'''Disclosure and Transparency'''
##Though the Treasury will ultimately determine the type and extent of disclosure required for participation in the TARP, it is clear that these requirements will be extensive, particularly with respect to any asset acquired by TARP. It seems certain that institutions who participate in TARP will have to publicly disclose information pertaining to their participation, including the number of assets they sold to TARP, what type of assets were sold, and at what price. More extensive disclosure may be required at the discretion of the Treasury.<ref name="EESA 2008"/>
##The Act also seems to give a broad mandate to the Treasury to determine, for each "type" of institution that sells assets to TARP, whether the current disclosure and transparency requirements on the sources of the institution's exposure (such as off-balance sheet transactions, derivative instruments, and contingent liabilities) are adequate. If the Treasury finds that a particular institution has not provided sufficient disclosures, it has the power to make recommendations for new disclosure requirements to the institution's regulators, which will probably include foreign-government regulators for those foreign financial institutions that have "significant operations" in the United States.<ref name="EESA 2008"/>
#'''Judicial Review of Treasury Actions'''
##The Act provides for judicial review of the actions taken by the Treasury under the EESA. In other words, the Treasury may be taken to court for actions it takes pursuant to the Act. Specifically, Treasury actions may be held unlawful if they involve an abuse of discretion, or are found to be "arbitrary, capricious . . . or not in accordance with law". However, a financial institution that sells assets to TARP is cannot challenge the Treasury's actions with respect to that institution's specific participation in TARP.<ref name="EESA 2008"/>

== Expenditures and commitments ==
{{As of|2012|June|30|df=US}}, $467 billion had been allotted, and $416 billion spent, according to a literature review on the TARP.<ref>Wilson, Linus, TARP (October 19, 2012). New Palgrave Dictionary of Economics Online, Forthcoming. Available at SSRN: http://ssrn.com/abstract=2164559</ref> The money committed includes:

* $204.9 billion to purchase bank equity shares through the [[Capital Purchase Program]]
* $67.8 billion to purchase preferred shares of [[American International Group]] (AIG), then among the top 10 US companies, through the program for Systemically Significant Failing Institutions;
* $1.4 billion to back any losses that the [[Federal Reserve Bank of New York]] might incur under the [[Term Asset-Backed Securities Loan Facility]];
* $40 billion in stock purchases of [[Citigroup]] and [[Bank of America]] ($20 billion each) through the Targeted Investment Program ($40 billion spent). All that money had been returned.
* $5 billion in loan guarantees for [[Citigroup]] ($5 billion). The program closed, with no payment made, on December 23, 2009.
* $79.7 billion in loans and capital injections to automakers and their financing arms through the Automotive Industry Financing Program.
* $21.9 billion to buy "toxic" mortgage-related securities.
* $0.57 billion in capital for banks in '''<span class="anchor" id="Community Development Capital Initiative">Community Development Capital Initiative</span>''' (CDCI) for banks serving disadvantaged communities. Eligible institutions had to be designated [[community development financial institution]]s (CDFI's).<ref>{{cite book |title=Financing Economic Development in the 21st Century |last=White |first=Sammis B. |author2=Zenia Z. Kotval |pages=222–223 |year=2012 |publisher=[[M.E. Sharpe]] |isbn=9780765636515 }}</ref><ref>{{cite book |title=Assessing the TARP on the Eve of Its Expiration |authorlink=Elizabeth Warren |last=Warren |first=Elizabeth |page=56 |year=2011 |publisher=DIANE Publishing |isbn=9781437940305 }}</ref> CDFI's attempt to make 60 percent of their loans to underserved communities. In exchange, they are eligible for special federal capital assistance.
* $45.6 billion for homeowner foreclosure assistance. Only $4.5 billion had been spent at the time.

The Congressional Budget Office released a report in January 2009, reviewing the transactions enacted through the TARP. The CBO found that through December 31, 2008, transactions under the TARP totaled $247 billion. According to the CBO's report, the Treasury had purchased $178 billion in shares of preferred stock and warrants from 214 U.S. financial institutions through its Capital Purchase Program (CPP). This included the purchase of $40 billion of preferred stock in AIG, $25 billion of preferred stock in Citigroup, and $15 billion of preferred stock in Bank of America. The Treasury also agreed to lend $18.4 billion to General Motors and Chrysler. The Treasury, the FDIC and the Federal Reserve have also agreed to guarantee a $306 billion portfolio of assets owned by Citigroup.<ref name="cbo.gov" />

The CBO also estimated the subsidy cost for transactions under TARP. The subsidy cost is defined as, broadly speaking, the difference between what the Treasury paid for the investments or lent to the firms and the market value of those transactions, where the assets in question were valued using procedures similar to those specified in the Federal Credit Reform Act (FCRA), but adjusting for market risk as specified in the EESA.<ref name="cbo.gov" /> The CBO estimated that the subsidy cost of the $247 billion in transactions before December 31, 2008, amounts to $64 billion. As of August 31, 2015, TARP is projected to cost approximately $37.3 billion total—significantly less than the $700 billion originally authorized by Congress.<ref>{{cite web|url=http://www.treasury.gov/initiatives/financial-stability/about-tarp/Pages/default.aspx|title=About TARP |website=treasury.gov |access-date=March 16, 2018}}</ref>

The May 2015 report of the TARP to Congress stated that $427.1 billion had been disbursed, total proceeds by April 30, 2015, were $441.8 billion, exceeding disbursements by $14.1 billion, though this included $17.7 billion in non-TARP AIG shares. The report predicted a total net cash outflow of $37.7 billion (excluding non-TARP AIG shares), based on the assumption the TARP housing programs' ([[Hardest Hit Fund]], [[Making Home Affordable]] and FHA refinancing) funds are fully taken up. Debt is still outstanding, some of which has been converted to common stock, from just under $125 million down to $7,000. Sums loaned to entities that have gone into, and in some cases emerged from bankruptcy or receivership are provided. Additional sums have been written off, for example Treasury's original investment of $854 million in Old GM.<ref name="May 2015 cong">{{Cite journal|url=http://www.treasury.gov/initiatives/financial-stability/reports/Documents/April%202015%20Monthly%20Report%20to%20Congress.pdf|title=Report to Congress May 2015|author=TARP|date=May 11, 2015}}</ref>

The May 2015 report also detailed other costs of the program, including $1.157 billion "for financial agents and legal firms" $142 million for personnel services, and $303 million for "other services".<ref name="May 2015 cong" />

==Participants==
<!--This heading is the target of a link-->
{{See also|2009 Supervisory Capital Assessment Program}}
The banks agreeing to receive preferred stock investments from the Treasury include [[Goldman Sachs]], [[Morgan Stanley]], [[JPMorgan Chase]], [[Bank of America]] (which had just agreed to purchase [[Merrill (company)|Merrill Lynch]]), [[Citigroup]], [[Wells Fargo]], [[BNY|Bank of New York Mellon]] and [[State Street Corporation]]<ref name='WSJ-Solomon-2008-10-14'>
{{cite news | url = https://www.wsj.com/articles/SB122390023840728367 | title = U.S. to Buy Stakes in Nation's Largest Banks | first1 = Deborah | last1 = Solomon | first2 = Damian | last2 = Paletta | first3 = Jon | last3 = Hilsenrath | first4 = Aaron | last4 = Lucchetti
|work=The Wall Street Journal |date=October 14, 2008 | access-date =October 14, 2008 }}</ref><ref name='NYT-Bailout Plan Graphic-2008-10-14'>
{{cite news | title= Bailout: The Rescue Plan & The Largest Recipients| date= October 14, 2008 | url = https://www.nytimes.com/imagepages/2008/10/13/business/20081014_BAILOUT1_GRAPHIC.html | work = The New York Times | access-date =October 14, 2008}} (Graphic of proposed bank equity investments)
</ref><ref name='NYT-Bank Equity Recipients Graphic-2008-10-14'>
{{cite news | title= Beneficiary Banks | date= October 14, 2008| url = https://www.nytimes.com/imagepages/2008/10/14/business/14bailout.graphic2.html | work = The New York Times| access-date =October 14, 2008 }}</ref>
The Bank of New York Mellon is to serve as [[Custodian bank|master custodian]] overseeing the fund.<ref name='NYT-Dash-2008-10-14'>
{{cite news |url=https://www.nytimes.com/2008/10/15/business/economy/15tarp.html |title=Bank of New York Will Oversee Bailout Fund |first=Eric |last=Dash |work = The New York Times |date=October 14, 2008 | access-date =October 14, 2008 }}</ref>

The U.S. Treasury maintains an official list of TARP recipients and proceeds to the government on a TARP website. Note that foreign-owned U.S. banks were not eligible. Beneficiaries of TARP include the following:<ref name='ProPublica-TARP-list'>{{cite news |url=https://www.propublica.org/article/show-me-the-tarp-money |title=Show Me the TARP Money |first=Paul |last=Kiel |work = ProPublica |date=February 9, 2009 | access-date =February 9, 2009 }}</ref>
{{sort under}}{{sticky header}}
{| class="wikitable sortable plainrowheaders sort-under-center sticky-header"
|-
! scope="col" | Company
! scope="col" | Preferred stock purchased (billions USD)
! scope="col" | Assets guaranteed (billions USD)
! scope="col" | Repaid TARP money (billions USD)
! scope="col" class="unsortable" | Additional details
|-
! scope="row" | [[Citigroup]]
| $45
| $306
| {{Partial|$20}}<ref name=CitiWellsFargo>{{cite news
 |url=https://www.google.com/hostednews/afp/article/ALeqM5ipv_z9Ne8NVGhWaTfoE-PAUzzKkQ
 |archive-url=https://web.archive.org/web/20100131235859/http://www.google.com/hostednews/afp/article/ALeqM5ipv_z9Ne8NVGhWaTfoE-PAUzzKkQ
 |url-status=dead
 |archive-date=January 31, 2010
 |agency=[[Agence France-Presse|AFP]]
 |title= Citi, Wells Fargo repay 45 billion dollars in bailouts
 |date=December 23, 2009
 |access-date=January 21, 2010}}</ref>
| Two allocations: $25 on October 28, 2008 and $20 in January 2009. The rest was converted to [[common equity]] which was sold by the Treasury Department over time with the final sale taking place in December 2010 at a $12 billion profit.<ref>{{cite news
 | url=http://finance.fortune.cnn.com/2010/12/07/treasury-near-10-billion-citi-windfall/
 | publisher=CNN/Fortune
 | title=Update: Treasury gets $12 billion Citi windfall
 | date=December 7, 2010
 | access-date=November 25, 2011}}</ref> Citi received the largest amount of TARP funding, "a larger bailout than any other U.S. bank."<ref>{{cite news |publisher=[[Bloomberg L.P.|Bloomberg]]
  |url=https://www.bloomberg.com/news/articles/2021-02-26/citi-s-corbat-has-parting-words-banking-is-quickly-changing
  |title=Citi's Corbat Has Parting Words: 'Banking Is Quickly Changing' |author=Jennifer Surane  |date=February 26, 2021 |access-date=June 30, 2022}}</ref>
|-
! scope="row" | [[Bank of America]]
| $45
| $118
|{{yes}}<ref name=BofA>{{cite web|url=https://www.nbcnews.com/id/wbna34350133 |title=BofA repays all of government bailout funds |publisher=NBC News |access-date=December 10, 2011}}</ref><ref name=BofA2>{{cite news
 |url=http://dealbook.blogs.nytimes.com/2009/12/10/bank-of-america-finishes-tarp-repayment
 |work=[[The New York Times]]
 |title=Bank of America Finishes TARP Repayment
 |date=December 10, 2009
| access-date=May 26, 2010}}</ref>
| Two allocations: $25 on October 28, 2008, and $20 in January 2009
|-
! scope="row" | [[American International Group|AIG (American International Group)]]
| $40
|
| {{partial|$36}}<ref name=AIGrepaysTARP>{{cite news
 |url=http://www.marketwatch.com/story/aig-repays-69-bln-to-us-treasury-2011-03-08
 |work=[[The Wall Street Journal]]/MarketWatch
 |title=AIG sells MetLife equity, repays $6.9 bln to Treasury
 |date=March 8, 2011
| access-date=March 8, 2011}}</ref>
|
|-
! scope="row" | [[JPMorgan Chase]]
| $25
|
| {{yes}}{{Citation needed |date=March 2024}}
| October 28, 2008{{Citation needed |date=March 2024}}
|-
! scope="row" | [[Wells Fargo]]
| $25
|
| {{yes}}<ref name=CitiWellsFargo />
| October 28, 2008
|-
! scope="row" | [[Ally Financial|GMAC Financial Services]] (Ally)
| $17.3
|
| {{yes}}
|Total stake has been liquidated with income received of $19.6 billion.<ref name="wsj1214">{{cite news | author = RYAN TRACY, JULIE STEINBERG and TELIS DEMOS | title = Bank Bailouts Approach a Final Reckoning | date = December 19, 2014 | url = https://www.wsj.com/articles/ally-financial-exits-tarp-as-treasury-sells-remaining-stake-1419000430 | access-date = December 28, 2014 | work=The Wall Street Journal}}</ref> Now renamed to Ally Financial.
|-
! scope="row" | [[General Motors]]
| $13.4
|
| {{yes}}
|Total loan portion repaid with interest to U.S. & Canadian governments {{as of |2010|April|21|df=US|lc=y}}, ; $2.1 billion in preferred stock and 61 percent common equity share outstanding<ref>AP: GM pays back government loans from US, Canada</ref>
|-
! scope="row" | [[Goldman Sachs]]
| $10
|
| {{yes}}{{Citation needed |date=March 2024}}
| October 28, 2008{{Citation needed |date=March 2024}}
|-
! scope="row" | [[Morgan Stanley]]
| $10
|
| {{yes}}
| Repaid June 17, 2009<ref>{{cite web |url=http://www.morganstanley.com/about/press/articles/b7cf5f77-5b47-11de-96f6-3f25a44c9933.html |title=Press Release |publisher=Morgan Stanley |date=June 17, 2009 |access-date=December 10, 2011 |archive-date=January 5, 2012 |archive-url=https://web.archive.org/web/20120105075030/http://www.morganstanley.com/about/press/articles/b7cf5f77-5b47-11de-96f6-3f25a44c9933.html |url-status=dead }}</ref>
|-
! scope="row" | [[PNC Financial Services|PNC Financial Services Group]]
| $7.579
|
| {{yes}}<ref name=PNC>{{cite news| url=http://www.post-gazette.com/pg/10034/1032934-28.stm | work=Pittsburgh Post-Gazette | title=PNC to repay bailout money | first=Patricia | last=Sabatini | date=February 3, 2010}}</ref>
| [[National City acquisition by PNC|Bought]] longtime rival [[National City Corp.]] within hours of receiving TARP money. Announced on February 2, 2010, that it would repay its TARP loan.<ref>{{cite news| url=http://dealbook.blogs.nytimes.com/2010/02/02/pnc-to-repay-tarp-money-after-sale-of-unit/ | work=The New York Times | title=PNC to Repay TARP Money After Sale of Unit | date=February 2, 2010}}</ref>
|-
! scope="row" | [[U.S. Bancorp]]
| $6.6
|
| {{yes}}{{Citation needed |date=March 2024}}
|
|-
! scope="row" | [[Chrysler]]
| $4
|
| {{yes}}
|Although Chrysler repaid their loans,<ref>{{cite web|url=https://home.treasury.gov/news/press-releases/tg1189 |title=Chrysler Repays Outstanding TARP Loans |publisher=Treasury.gov |access-date=November 4, 2013}}</ref> the Treasury sold its 6% stake in the company to [[Fiat]] at a $1.3 billion loss.<ref>{{cite news| url=https://money.cnn.com/2011/07/21/autos/chrysler_government_exit/index.htm | work=CNN | first=Annalyn | last=Censky | title=U.S. loses .3 billion in exiting Chrysler | date=July 21, 2011}}</ref>
|-
! scope="row" | [[Capital One|Capital One Financial]]
| $3.555
|
| {{yes}}{{Citation needed |date=March 2024}}
|
|-
! scope="row" | [[Regions Financial Corporation]]
| $3.5
| 
| {{yes}}
| Repaid April 4, 2012<ref>{{cite news|url=https://www.wsj.com/articles/SB10001424052702303299604577323761486741868 |title=Regions Financial Exits TARP |newspaper=Wall Street Journal |date=April 4, 2012 |access-date=April 5, 2012 |first=Jeffrey |last=Sparshott}}</ref>
|-
! scope="row" | [[American Express]]
| $3.389
|
| {{yes}}{{Citation needed |date=March 2024}}
|
|-
! scope="row" | [[Bank of New York|Bank of New York Mellon Corp]]
| $2 to $3
|
| {{yes}}{{Citation needed |date=March 2024}}
|
|-
! scope="row" | [[State Street Corporation]]
| $2 to $3{{Clarify |date=March 2024}}
|
| {{yes}}{{Citation needed |date=March 2024}}
|
|-
! scope="row" | [[Discover Financial]]
| $1.23<ref>{{cite news|url=https://www.forbes.com/2010/03/17/discover-financial-credit-markets-equities-card-marketnewsvideo.html |title=Discover Lifts The TARP |work=Forbes |access-date=November 4, 2013}}</ref>
|
| {{yes}}<ref name=DFS>{{cite news| url=https://www.wsj.com/articles/SB10001424052748704688604575126050740440296 | work=The Wall Street Journal | title=Discover to Repay TARP | date=March 17, 2010 | first=Jay | last=Miller}}</ref>
|
|}

Of these banks, JPMorgan Chase & Co., Morgan Stanley, American Express Co., Goldman Sachs Group Inc., U.S. Bancorp, Capital One Financial Corp., Bank of New York Mellon Corp., State Street Corp., BB&T Corp, Wells Fargo & Co. and Bank of America repaid TARP money. Most banks repaid TARP funds using capital raised from the issuance of equity securities and debt not guaranteed by the federal government. PNC Financial Services, one of the few profitable banks without TARP money, planned on paying their share back by January 2011, by building up its cash reserves instead of issuing equity securities.<ref>{{cite news| url=http://www.post-gazette.com/pg/09296/1007676-28.stm | work=Pittsburgh Post-Gazette | title=PNC quarterly profits more than double | first=Patricia | last=Sabatini | date=October 23, 2009}}</ref> However, PNC reversed course on February 2, 2010, by issuing $3 billion in shares and $1.5-2 billion in senior notes in order to pay its TARP funds back. PNC also raised funds by selling its Global Investment Services division to crosstown rival [[The Bank of New York Mellon]].<ref name="PNC" />

In a January 2012, review, it was reported that AIG still owed around $50 billion, GM about $25 billion and Ally about $12 billion. Break even on the first two companies would be at $28.73 a share versus then-current share price of $25.31 and $53.98 versus then-current share price of $24.92, respectively. Ally was not publicly traded. The 371 banks that still owed money include Regions ($3.5 billion), [[Zions Bancorporation]] ($1.4 billion), [[Synovus|Synovus Financial Corp.]] ($967.9 million), [[Popular, Inc.]] ($935 million), [[First BanCorp]] of San Juan, Puerto Rico ($400 million) and [[M&T Bank Corp.]] ($381.5 million).<ref>Gordon, Marcy, [http://www.ajc.com/business/report-taxpayers-still-owed-1317741.html "Report: Taxpayers still owed $133B from bailout"], [[Associated Press]] via ''Atlanta Journal-Constitution'', January 26, 2012. Retrieved January 26, 2012.</ref>

==TARP fraud==
Some in the financial industry have been accused of not using the loaned dollars for its intended reason. Others further abused investors after the TARP legislation was passed by telling investors their money was invested in the federal TARP financial bailout program and other securities that did not exist.{{citation needed|date=March 2021}} [[Neil Barofsky]], Special Inspector General for the Troubled Asset Relief Program (SIGTARP), told lawmakers, "Inadequate oversight and insufficient information about what companies are doing with the money leaves the program open to fraud, including conflicts of interest facing fund managers, collusion between participants and vulnerabilities to money laundering.<ref>{{cite web|last=Stein |first=Mark |url=http://www.portfolio.com/views/blogs/daily-brief/2009/04/21/tarp-fraud-probes-begin/ |title=Tarp Fraud Probes Begin - Daily Brief |publisher=Portfolio.com |date=April 21, 2009 |access-date=December 10, 2011}}</ref>

In its October 2011 quarterly report to Congress, SIGTARP reported "more than 150 ongoing criminal and civil investigations". SIGTARP had already achieved criminal convictions of 28 defendants (19 had already been sentenced to prison), and civil cases naming 37 individuals and 18 corporate/legal entities as defendants. It had recovered $151 million, and prevented $553 million going to [[Colonial Bank (United States)|Colonial Bank]], which failed.<ref name="sigtarp.gov october report">{{cite web|title=SIGTARP Quarterly Report to Congress|url=http://www.sigtarp.gov/reports/congress/2011/October2011_Quarterly_Report_to_Congress.pdf|date=October 27, 2011|access-date=January 23, 2012}}</ref>

The first TARP fraud case was brought by the SEC on January 19, 2009, against Nashville-based Gordon Grigg and his firm ProTrust Management.<ref>{{cite news| url=https://www.usatoday.com/money/markets/2009-01-28-sec-tarp-fraud_N.htm | work=USA Today | title=SEC charges financial planner with TARP fraud | date=January 28, 2009 | access-date=May 26, 2010}}</ref> The latest occurred in March 2010, with the FBI claiming Charles Antonucci, the former president and chief executive of the Park Avenue Bank, made false statements to regulators in an effort to obtain about $11 million from the fund.<ref>{{cite news| url=https://www.wsj.com/articles/SB10001424052748703909804575123672347495854 | work=The Wall Street Journal | title=Bank Chief Accused of TARP Fraud | first1=Lingling | last1=Wei | first2=Chad | last2=Bray | date=March 16, 2010}}</ref>

==Special Inspector General for the Troubled Asset Relief Program==
The Special Inspector General for the Troubled Asset Relief Program (SIGTARP) was established by Congress in 2008 to oversee the implementation of the Troubled Asset Relief Program (TARP), which was created to stabilize the U.S. economy during the financial crisis. TARP involved the U.S. government providing financial assistance to banks, automakers, and other institutions at risk of failure. SIGTARP’s primary role is to ensure that TARP funds are used properly and to investigate potential fraud, waste, and abuse. It works independently from the U.S. Department of Treasury, which administers TARP, and is tasked with maintaining transparency and accountability in the program’s operations.<ref name="sigtarp.gov about">{{cite web|title=SIGTARP About|url=http://www.sigtarp.gov/about/|date=October 27, 2021|access-date=January 23, 2022}}</ref>

SIGTARP conducts audits, investigations, and legal actions to detect and deter misconduct related to TARP funds. It reports its findings regularly to Congress, the President, and the public, providing oversight on the effectiveness and integrity of the program. Through its efforts, SIGTARP helps protect taxpayers by holding individuals and organizations accountable for improper use of government funds. Additionally, it plays a key role in ensuring that TARP's goals of stabilizing the financial system and stimulating economic recovery are achieved without compromising public trust.

==Similar historical federal banking programs==
The nearest parallel action the federal government has taken was in investments made by the [[Reconstruction Finance Corporation]] (RFC) in the 1930s. The RFC, an agency chartered during the [[Herbert Hoover]] administration in 1932, made loans to distressed banks and bought stock in 6,000 banks, totaling $1.3 billion. ''The New York Times,'' citing finance experts on October 13, 2008, noted that, "A similar effort these days, in proportion to today's economy, would be about $200 billion." When the economy had stabilized, the government sold its bank stock to private investors or the banks, and is estimated to have received approximately the same amount previously invested.<ref name='NYT-Lohr-2008-10-13'>
{{cite news | first= Steve | last= Lohr | title= Intervention Is Bold, but Has a Basis in History | date= October 13, 2008 | url = https://www.nytimes.com/2008/10/14/business/economy/14nationalize.html | work = The New York Times| access-date =October 15, 2008 }} The article relies on the work of New York University Historian and Economist [[Richard Sylla]] for historical estimates.
</ref>

In 1984, the government took an 80 percent stake in the nation's then seventh-largest bank [[Continental Illinois]] Bank and Trust. Continental Illinois made loans to oil drillers and service companies in Oklahoma and Texas. The government was estimated to have lost $1 billion because of Continental Illinois, which ultimately became part of [[Bank of America]].<ref name='NYT-Lohr-2008-10-13'/>

The $24 billion for the estimated subsidy cost of TARP was less than the government's cost for the [[savings and loan crisis]] of the late 1980s, although the subsidy cost does not include the cost of other "bailout" programs (such as the [[Federal Reserve System|Federal Reserve]]'s [[Maiden Lane Transactions]] and the [[Federal takeover of Fannie Mae and Freddie Mac]]). The cost of the S&L crisis amounted to 3.2 percent of GDP during the Reagan/Bush era, while the GDP percentage of the TARP cost was estimated at less than 1 percent.<ref name="online.wsj.com">Deborah Solomon. [https://www.wsj.com/articles/SB10001424052702304846504575177950029886696 "Light At the End of the Bailout Tunnel"]. ''The Wall Street Journal''. April 12, 2010.{{subscription required|s}}</ref>

==Controversies==
{{See also|AIG bonus payments controversy|Indiana State Police Pension Trust v. Chrysler|National City acquisition by PNC}}

The primary purpose of TARP, according to the Federal Reserve, was to stabilize the financial sector by purchasing illiquid assets from banks and other financial institutions.<ref>{{cite news|last=Bernanke|first=Ben|date=October 7, 2008|access-date=April 11, 2013|title=Current Economic and Financial Conditions|url=http://www.federalreserve.gov/newsevents/speech/bernanke20081007a.htm|work=[[Federal Reserve]]}}</ref> However, the effects of the TARP have been widely debated in large part because the purpose of the fund is not widely understood. A review of investor presentations and conference calls by executives of some two dozen US-based banks by [[The New York Times]] found that "few [banks] cited lending as a priority. Further, an overwhelming majority saw the program as a no-strings-attached windfall that could be used to pay down debt, acquire other businesses or invest for the future."<ref>{{cite news | first= Mike| last= McIntire | title= Bailout Is a Windfall to Banks, if Not to Borrowers.| date= January 17, 2009 | url = https://www.nytimes.com/2009/01/18/business/18bank.html | work = The New York Times | access-date =January 20, 2009}}</ref> The article cited several bank chairmen as stating that they viewed the money as available for strategic acquisitions in the future rather than to increase lending to the private sector, whose ability to pay back the loans was suspect. PlainsCapital chairman Alan B. White saw the Bush administration's cash infusion as "opportunity capital", noting, "They didn't tell me I had to do anything particular with it."

Moreover, while TARP funds have been provided to bank holding companies, those holding companies have only used a fraction of such funds to recapitalize their bank subsidiaries.<ref>{{cite news | last1 = Coates | first1 = John C. | first2 = David S. | last2 = Scharfstein | date = February 17, 2009 | access-date = February 19, 2009 | title = Op-Ed: The Bailout Is Robbing the Banks | url = https://www.nytimes.com/2009/02/18/opinion/18scharfstein.html | work = [[The New York Times]] }}</ref>

Many analysts speculated TARP funds could be used by stronger banks to buy weaker ones.<ref>{{cite web |url=http://www.fiercefinance.com/story/how-can-banks-best-use-tarp-funds/2008-10-31 |title=How can banks best use TARP funds? |publisher=FierceFinance |date=October 31, 2008 |access-date=December 10, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20090124235856/http://fiercefinance.com/story/how-can-banks-best-use-tarp-funds/2008-10-31 |archive-date=January 24, 2009 }}</ref> On October 24, 2008, [[PNC Financial Services]] received $7.7 billion in TARP funds, then only hours later agreed to buy [[National City Corp.]] for $5.58 billion, an amount that was considered a bargain.<ref>{{cite web|url=http://kdka.com/business/PNC.Financial.Services.2.847872.html |archive-url=https://web.archive.org/web/20081025073649/http://kdka.com/business/PNC.Financial.Services.2.847872.html |archive-date=October 25, 2008 |title=kdka.com - PNC Financial Services To Buy National City |date=October 24, 2008 |access-date=November 4, 2013}}</ref> Despite ongoing speculation that more TARP funds could be used by large-but-weak banks to gobble up small banks, as of October 2009, no further such takeover had occurred.

The Senate Congressional Oversight Panel created to oversee the TARP concluded on January 9, 2009: "In particular, the Panel sees no evidence that the [[U.S. Treasury]] has used TARP funds to support the housing market by avoiding preventable foreclosures." The panel also concluded that "Although half the money has not yet been received by the banks, hundreds of billions of dollars have been injected into the marketplace with no demonstrable effects on lending."<ref>{{cite web|url=http://cop.senate.gov/documents/cop-010909-report.pdf |title=Accountability for the Troubled Asset Relief Program |access-date=November 4, 2013 |url-status=unfit |archive-url=https://web.archive.org/web/20110106141711/http://cop.senate.gov/documents/cop-010909-report.pdf |archive-date=January 6, 2011 }}</ref>

Government officials that oversaw the bailout acknowledged the difficulties in tracking the money and in measuring the bailout's effectiveness.<ref>{{cite news| url=http://articles.economictimes.indiatimes.com/2009-01-01/news/28412357_1_bailout-program-bailout-money-rotten-assets | archive-url=https://web.archive.org/web/20131212083021/http://articles.economictimes.indiatimes.com/2009-01-01/news/28412357_1_bailout-program-bailout-money-rotten-assets | url-status=dead | archive-date=December 12, 2013 | work=The Times Of India | title=US officials say tracking bailout money is difficult | date=January 1, 2009}}</ref>

During 2008, companies that received $295 billion in bailout money had spent $114 million on lobbying and campaign contributions.<ref>{{cite news|url=https://www.reuters.com/article/politicsNews/idUSTRE51377B20090204?feedType=RSS&feedName=politicsNews |title=U.S. bailout recipients spent $114 million on politics |work=Reuters |access-date=November 4, 2013 |first=Andy |last=Sullivan |date=February 4, 2009}}</ref> Banks that received bailout money had compensated their top executives nearly $1.6 billion in 2007, including salaries, cash bonuses, stock options, and benefits including personal use of company jets and chauffeurs, home security, country club memberships, and professional money management.<ref>{{cite web|url=https://abcnews.go.com/Business/wireStory?id=6504932 |title=Business News, Personal Finance and Money News - ABC News |publisher=Abcnews.go.com |access-date=November 4, 2013}}</ref> The Obama administration has promised to set a $500,000 cap on executive pay at companies that receive bailout money,<ref>{{cite news| url=https://www.nytimes.com/2009/02/04/business/04pay.html | work=The New York Times | first1=Edmund L. | last1=Andrews | first2=Vikas | last2=Bajaj | title=U.S. Plans $500,000 Cap on Executive Pay in Bailouts | date=February 4, 2009}}</ref> directing banks to tie risk taken to workers' reward by paying anything further in deferred stock.<ref>{{cite news|url=https://www.washingtonpost.com/wp-dyn/content/article/2009/02/13/AR2009021303288.html |title=Congress Limits CEO Bonuses |work=Washingtonpost.com |access-date=November 4, 2013 |date=February 14, 2009}}</ref> [[Graef Crystal]], a former compensation consultant and author of "The Crystal Report on Executive Compensation", claimed that the limits on executive pay were "a joke" and that "they're just allowing companies to defer compensation."<ref>{{cite news|url=https://www.bloomberg.com/apps/news?pid=washingtonstory&sid=azVLk.22AkLI |title=News |publisher=Bloomberg.com |date=February 5, 2009 |access-date=November 4, 2013}}</ref>

In November 2011, a report showed that the sum of the government's guarantees increased to $7.77 trillion; however, loans to banks were only a small fraction of that amount.<ref>{{cite news|last=Ivry |first=Bob |url=https://www.bloomberg.com/news/articles/2011-11-28/secret-fed-loans-undisclosed-to-congress-gave-banks-13-billion-in-income |title=Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress |publisher=Bloomberg |access-date=February 18, 2018}}</ref>

One study found that the typical white-owned bank was about ten times more likely to receive TARP money in the CDCI program than a black-owned bank after controlling for other factors.<ref>{{cite journal|journal=SSRN|ssrn=2247043 |title=Minority Ownership and TARP Investments by Lucas Puente, Linus Wilson |doi=10.2139/ssrn.2247043 |year=2013 |last1=Puente |first1=Lucas |last2=Wilson |first2=Linus |s2cid=166446614 }}</ref>

==American Bankers Association's attempts to expunge the TARP warrants==
By March 31, 2009, four banks out of over five hundred had returned their [[preferred stock]] obligations. None of the publicly traded banks had yet bought back their warrants owned by the U.S. Treasury by March 31, 2009.<ref>{{Cite web |url=http://www.sigtarp.gov/Audit%20Reports/Assessing%20Treasury%27s%20Process%20to%20Sell%20Warrants%20Received%20From%20TARP%20Recipients_May_11_2010.pdf |title=Assessing Treasury's Process to Sell Warrants That It Received From TARP Recipients |access-date=February 18, 2022 |archive-date=September 19, 2020 |archive-url=https://web.archive.org/web/20200919075025/https://www.sigtarp.gov/Audit%20Reports/Assessing%20Treasury%27s%20Process%20to%20Sell%20Warrants%20Received%20From%20TARP%20Recipients_May_11_2010.pdf |url-status=dead }}</ref> According to the terms of the U.S. Treasury's investment, the banks returning funds can either negotiate to buy back the warrants at fair market value, or the U.S. Treasury can sell the warrants to third party investors as soon as feasible. Warrants are [[call option]]s that add to the number of shares of stock outstanding if they are exercised for a profit. The [[American Bankers Association]] (ABA) has lobbied Congress to cancel the warrants owned by the government, calling them an "onerous exit fee".<ref>Damian Paletta; Deborah Solomon. [https://www.wsj.com/articles/SB124035639380840961 "Financial Firms Lobby to Cut Cost of TARP Exit"]. ''The Wall Street Journal''. April 22, 2009. Retrieved April 27, 2009.</ref> Yet, if the Capital Purchase Program warrants of Goldman Sachs are representative, then the [[Capital Purchase Program]] warrants were worth between $5 billion and $24 billion as of May 1, 2009. Canceling the CPP warrants thus amounts to a $5 billion to $24 billion subsidy to the banking industry at government expense.<ref>{{cite journal|journal=SSRN|ssrn=1400995 |title=The Goldman Sachs Warrants |publisher=SSRN.com |date=May 7, 2009 |last1=Wilson |first1=Linus |doi=10.2139/ssrn.1400995 |s2cid=153755459 }}</ref> While the ABA wants the CPP warrants to be written off by the government, Goldman Sachs does not hold that view. A representative of Goldman Sachs was quoted as saying "We think that taxpayers should expect a decent return on their investment and look forward to being able to provide just that when we are permitted to return the TARP money."<ref>John Carney. [http://www.businessinsider.com/goldman-sachs-is-not-lobbying-to-expunge-the-tarp-warrants-2009-4 "Goldman Sachs Is NOT Lobbying to Expunge the TARP Warrants"]. April 23, 2009. Retrieved May 1, 2009.</ref>

==Impact==
In total, U.S. government economic bailouts related to the [[2008 financial crisis]] had federal outflows (expenditures, loans, and investments) of $633.6 billion and inflows (funds returned to the Treasury as interest, dividends, fees, or stock warrant repurchases) of $754.8 billion, for a net profit of $121 billion.<ref name=PPTracker>Paul Kiel & Dan Nguyen, [https://projects.propublica.org/bailout/ Bailout Tracker: Tracking Every Dollar and Every Recipient], ''ProPublica'' (published April 15, 2009; updated March 19, 2020).</ref> Of financial system bailout outflows, 38.7% went to banks and other financial institutions, 30.2% to [[Federal takeover of Fannie Mae and Freddie Mac|Fannie Mae and Freddie Mac]], 12.6% to [[Automotive industry crisis of 2008–2010|auto companies]], and 10.7% to [[American International Group|AIG]], with the remaining 7.8% in other programs.<ref name=PPTracker/>

A 2019 study by economist [[Deborah J. Lucas|Deborah Lucas]] published in the ''[[Annual Review of Financial Economics]]'' estimated "that the total direct cost of the 2008 crisis-related bailouts in the United States" (including TARP and other programs) was about $500 billion, or 3.5% of the United States's GDP in 2009, and that "the largest direct beneficiaries of the bailouts were the unsecured creditors of financial institutions."<ref name=Lucas>{{Cite journal|url=https://www.annualreviews.org/doi/abs/10.1146/annurev-financial-110217-022532|doi = 10.1146/annurev-financial-110217-022532|title = Measuring the Cost of Bailouts|year = 2019|last1 = Lucas|first1 = Deborah|author1-link=Deborah J. Lucas|journal = Annual Review of Financial Economics|volume = 11|pages = 85–108| hdl=1721.1/135978 | s2cid=214056153 |hdl-access = free}}</ref> Lucas noted that this cost estimate "stands in sharp contrast to popular accounts that claim there was no cost because the money was repaid, and with claims of costs in the trillions of dollars."<ref name=Lucas/>

In a 2012 survey of leading economists conducted by the [[University of Chicago Booth School of Business]]' [[Initiative on Global Markets]], economists generally agreed that unemployment at the end of 2010 would have been higher without the program.<ref>[http://www.igmchicago.org/surveys/bank-bailouts survey: Bank Bailouts], Initiative on Global Markets (March 6, 2012).</ref>

==See also==
{{Portal|Banks|United States|2000s|2010s}}
* [[2008 financial crisis]]
* [[2008 United Kingdom bank rescue package]]
* [[American Recovery and Reinvestment Act of 2009]]
* [[Corporate welfare]]
* [[Emergency Economic Stabilization Act of 2008]]
* [[Financial Crisis Responsibility Fee]]
* [[Lemon socialism]]
* [[Matthew Pendo]]
* [[NCUA Corporate Stabilization Program]]

==References==
{{Reflist}}

==Further reading==
* [[James B. Stewart|Stewart, James B.]], [https://www.newyorker.com/reporting/2009/09/21/090921fa_fact_stewart "Eight Days: the battle to save the American financial system"],''[[The New Yorker]]'' magazine, September 21, 2009.

==External links==
*[http://www.financialstability.gov/ FinancialStability.gov] ''Official website''
*[https://web.archive.org/web/20091213052614/http://www.data.gov/list/financialstability Datasets and Tools] for FinancialStability.gov at [[Data.gov]]
*{{cite news | title= Stimulus.org | url = http://www.stimulus.org | access-date =October 16, 2012 }} (Listing of all economic recovery measures, including from TARP.)
*{{cite news | first1 = Matthew | last1 = Ericson | first2 = Elaine | last2 = He | first3 = Amy | last3 = Schoenfeld | title = Tracking the $700 Billion Bailout | url = http://projects.nytimes.com/creditcrisis/recipients/table | work = The New York Times | access-date = January 9, 2009 | url-status = dead | archive-url = https://web.archive.org/web/20100220192916/http://projects.nytimes.com/creditcrisis/recipients/table | archive-date = February 20, 2010 | df = mdy-all }} (Listing of recipients for funds allocated or distributed under TARP.)
*[https://www.sigtarp.gov/pages/Reports-Testimony-Home.aspx Reports and testimony] from the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP)

{{2008 economic crisis}}
{{Subprime mortgage crisis}}
{{Presidency of George W. Bush}}
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[[Category:Troubled Asset Relief Program| ]]
[[Category:Banking in the United States]]
[[Category:Systemic risk]]
[[Category:United States Department of the Treasury]]
[[Category:George W. Bush administration controversies]]
[[fr:Plan Paulson]]