End the TARP Program Prohibiting Any Additional Bailouts

  • Potential 10 Year Savings: $Several billion
  • Sponsor: Rep. Erik Paulson
  • Legislation:
  • Status: Voted on House Floor

While the Troubled Asset Relief Program (TARP) is supposed to end on October 3rd, under a provision of the recently enacted financial regulation bill it is still possible for the government to make new bailouts through any program that was already in place on June 25, 2010. This could include additional commitments to AIG and / or additional commitments to the AdministrationŐs mortgage modification programs. In August it was estimated that spending from TARP will range between $4 billion and $7 billion a year between 2011 and 2014, mainly for the Administration's mortgage programs. Acting to terminate TARP now may reduce these expenditures.

ERIC CANTOR