Final Cost Of TARP Was Miniscule, Boasts Geithner

Treasury Secretary Tim Geithner told a congressional oversight panel on Thursday that the economic rescue program passed during the Bush administration helped stave off a depression and ended up costing the government relatively little.

According to Geithner, the Troubled Assets Relief Program “brought stability to the financial system and the economy at a fraction of the expected costs.”

“In terms of direct financial cost, TARP will rank as one of the most effective crisis response programs ever implemented,” he added.

In prepared remarks, Geithner told the panel that TARP, which officially expired in October, cost taxpayers roughly $25 billion, according to a recent estimate put forth by the nonpartisan Congressional Budget Office. Forecasters initially predicted that the total cost of the bailout would ultimately reach upwards of $350 billion.

Geithner, however, was quick to remind that while the program helped to some extent, credit is still hard to come by for some, and the housing market remains subpar.

“We are still living with the scars of this crisis, and both our financial system and the economy as a whole continue to show signs of significant damage.”

To counter the continued need of businesses and families for financial assistance, Geithner said the government is using other avenues to provide help.

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