TARP is officially over as of today. As I noted about a year ago, despite the huge unpopularity of the program it really was a huge success and cost much less than most people initially imagined.
According to CBS news today:
“As the New York Times reported last week, the White House now expects the program to come in at a cost of $50 billion or less – and could even end up turning a profit for the government. (The nonpartisan Congressional Budget Office estimates the final bill at $66 billion.) Many of the institutions that received TARP funds, including banks and auto companies, have paid back the money with interest, and American International Group (AIG) last week announced plans to repay its outstanding bill.”
This is really fantastic news for the US tax payer.
Neel Kashkari was on CNBC this morning discussing the news. Neel had a major role in managing TARP under the Bush administration, and is now the managing director and head of new investment initiatives PIMCO.
Neel called the program a resounding success. He stated that during the height of the crisis the Treasury was not sure they would receive any of the $700 billion back.
Below is Neel’s interview with Becky Quick: