TARP Played ‘Critical Role’ in Stabilizing Financial Sector and Restarting Credit Markets, Treasury Says

The Treasury Department has just releases a two year retrospective report on the Troubled Asset Relief Program (TARP). Its bottom line:  TARP played a “critical role” in recapitalizing the financial sector and restarting the credit markets, “which made it possible for businesses, municipalities, and families to borrow again, so that our economy could recover.” 

Treasury also says that the cost was not quite the $800 billion often quoted. In fact, according to the report, in light of the recently announced AIG restructuring and when valued at current market prices, Treasury now estimates that the total cost of TARP will be about $50 billion. In addition, using the same assumptions, Treasury estimates that the combined cost of TARP programs and other Treasury interests in AIG will be about $30 billion.  

We remember very well the economic destruction the US - and the rest of the world - was facing in late 2008/early 2009. Thank goodness for TARP.