Treasury Notes

 7 TARP Facts 7 Years Later

By: Rob Runyan and Maya Newman
10/4/2015


​When the Troubled Asset Relief Program, or TARP, was signed into law in October 2008, the financial crisis was raging and many feared we were on the precipice of another Great Depression. TARP, along with other actions taken by the government, helped to stem the panic by stabilizing the financial markets and restoring confidence in the economy.
 
This Saturday marked the seventh anniversary of TARP. And while the program may not dominate the headlines today, the anniversary serves as a good opportunity to look back at its success. Beyond the taxpayers return on their investments, TARP helped to stabilize our banks, keep credit flowing to businesses and individuals, save our auto industry, and keep millions of Americans in their homes.
 
The economic recovery that continues today – 67 straight months of private sector job growth and the lowest unemployment rate since April 2008 – is proof that the broad-based federal response to the financial crisis was effective in stabilizing our economy and setting the table for sustainable growth.
 
TARP was always meant to be a temporary, emergency program and most of the programs have been wound down. The government should not be in the business of owning stakes in private companies for an indefinite period of time.
 
That’s why, after we extinguished the immediate financial fire, we began moving to exit our investments and replace temporary government support with private capital. Making a return on the taxpayer investments was not the primary purpose of the program, but the prudent execution of the TARP has helped to achieve its first goal – stabilizing the American economy – while minimizing the cost of TARP programs to the taxpayer.
 
Seven years later, here are seven key facts about TARP​​:
  • To date, taxpayers have recovered $442 billion* under TARP while disbursing $429.7 billion, a $12.3 billion positive return.
  • TARP’s bank programs have recovered $275 billion through repayments and other income, $29.9 billion more than originally invested.
  • ​Under TARP’s Capital Purchase Program, Treasury provided capital to 707 financial institutions, 688 of which have exited the program.
  • TARP saved an estimated one million auto jobs.
  • Treasury has recovered more than $23.6 billion on its original $19.1 billion investment in credit market programs.
  • TARP’s Making Home Affordable (MHA) program has helped more than 1.5 million families avoid foreclosure.
  • MHA has saved homeowners more than $36 billion on monthly mortgage payments.
 * Includes Treasury’s additional proceeds from the sale of non-TARP shares of AIG​

Rob Runyan and Maya Newman are spokespeople at the U.S. Treasury Department.​​​
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Posted in:  Troubled Asset Relief Program
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