Geithner on TARP: We're Almost Ready to Start Using That Slush Fund Now
These guys are totally out of their minds. For the record.
The Obama administration will outline its plan to end the government's $700 billion financial rescue program in the next few weeks, a top official said, though that doesn't mean it will expire as scheduled by year end.
"We are close to the point where we can wind down this program and stop making new commitments," Treasury Secretary Timothy Geithner told a U.S. Senate panel Wednesday.
Treasury officials have come under increasing pressure to share their plans for the Troubled Asset Relief Program, the $700 billion program passed at the height of the financial crisis last year and which is set to expire at the end of the year. The Treasury can extend the program into 2010 if it deems it necessary, though many on Capitol Hill have balked at prolonging a program that has come to symbolize Washington's bailout of Wall Street at the expense of taxpayers.
Mr. Geithner, questioned by Sen. John Thune (R., S.D.), said "nothing would make me happier" than to end the program. He said administration officials would outline in the coming weeks some ideas for ending the government's various rescue programs, which include capital infusions into banks and asset guarantees. The government is going to be able to return "very, very substantial" amounts of money to taxpayers at the end of the program, he said.
Mr. Geithner warned, however, that officials are wary of ending the government backstop too early. Officials don't want to prematurely take steps that would restrict the flow of credit and exacerbate current economic difficulties, he said.
"We're not quite there yet," Mr. Geithner said of the timing for ending the $700 billion program.
How can they expire TARP with TARP repayments still outstanding? If Timmy Boy is waiting for that cash to come back, I hope he's not holding his breath because, uh, that day may never come.
Surely someone sent him a memo on this?