From Marketwatch today:
“While cost is not the complete measure of success, it is important to note that TARP’s bank programs have already yielded a significant positive return for taxpayers,” wrote Timothy Bowler, the acting assistant secretary for the Office of Financial Stability. “While unpopular at times, the program protected the economy during the crisis and helped keep credit flowing to consumers and businesses.”
But this week, a report by the agency created to monitor TARP, paints a different picture altogether. While most banks paid back the money with interest, there was rampant fraud in the program, which itself was costly. And, in the end, TARP has effectively lost, or written off, $35 billion with another roughly $1 billion outstanding.
Just another ‘Don’t-look-behind-the-curtain’ moment from this administration. Is anyone surprised?