Congressional Oversight Panel. July Oversight Report: TARP Repayments, including the Repurchase of Stock Warrants. July 10, 2009

摘要

In late 2008, our economy faced an exceptional crisis, and Congress created the Troubled Asset Relief Program (TARP) in an effort to stabilize the financial system. Through the TARP, taxpayers invested billions of dollars in the nations financial institutions. These actions imposed an enormous risk on taxpayers. If the TARP failed to stabilize the financial system, the entire economy could collapse. Even if the system stabilized after huge infusions of taxpayer funds, if some institutions were unable to recover taxpayers could be paying the debts for generations. While these risks were looming, then-Treasury Secretary Henry Paulson argued that TARP assistance could be used to rescue the economy and generate a profit for taxpayers. When Congress authorized the commitment of $700 billion to rescue the financial system, it decided that taxpayers should have the opportunity to share in a potential upside if the banks returned to profitability. If small businesses and households are unable to spend, then both the depth and length of the countrys economic trouble will be intensified. In the past, much of that spending has been supported by credit.