June 15th, 2009
10:40 AM ET
5 years ago

Lawmakers propose putting an end to TARP

Sen. John Thune is among lawmakers calling for an end to TARP.
Sen. John Thune is among lawmakers calling for an end to TARP.

NEW YORK (CNNMoney.com) - For some, the slow, steady demise of TARP cannot happen soon enough.

Last week, 10 of the nation's largest financial firms won their release from the Treasury Department's Troubled Asset Relief Program, setting the stage for them to pay back the billions of dollars the government loaned them last fall.

But this news was book ended by two pieces of proposed legislation from members of the House and the Senate, both of which aim to end the controversial program sooner rather than later.

Rep. Jeb Hensarling, R-Texas, whose proposal would effectively shutter TARP by year's end, would prevent the Treasury Department from using any of the TARP money returned by banks to lend back out to other struggling firms.

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Filed under: Economy • TARP
soundoff (40 Responses)
  1. Larry from RI

    Paid back with interest too – sure looks like things are working!

    Wonder how the right will spin this as a failure?

    June 15, 2009 11:42 am at 11:42 am |
  2. My brain got baked in Phoenix

    Didnt Bush give almost a trillion to his best friends before he left?Wheres TCM?Maybe he was Von the Mann?

    June 15, 2009 11:43 am at 11:43 am |
  3. Mary the Democrat

    TARP has been a huge disaster.......the sooner it goes away the better!

    June 15, 2009 11:48 am at 11:48 am |
  4. Paul

    This is exactly what happened during the Great Depression: at the first glimmers of recovery, the right moves in and says we don't need so much government help any more. It's idiotic. The country is still in a very fragile state, and government has a significant part to play in recovery.

    June 15, 2009 11:49 am at 11:49 am |
  5. GoElis

    Is someone paying right-wing nutjobs to post comments saying that TARP is evil? Without TARP, a number of our biggest banks would have collapsed, which would have affected every business that relies on those institutions for credit and every employee of every one of those businesses. Hensarling doesn't seem to recognize that we run the risk of of renewing the credit crunch if we end TARP too soon. Besides, I suspect that Hensarling knows that his bill won't pass. He's just trying to score political points by opposing an unpopular, though necessary, program.

    June 15, 2009 11:50 am at 11:50 am |
  6. Mississippi Mike

    There's a no-brainer. Banks don't want the money and taxpayers don't want to pay for the program. The only people who like the program are the Democrats who finally get to control one of the most important industries in an economy. This is the perfect example of a power grab gone wrong.

    June 15, 2009 11:56 am at 11:56 am |
  7. bob in LA

    Republicans need to study history. what was the main cause of the Depression? LACK of government intervention. It was not unil FDR pushed through all of his spending that we started seeing relief.

    June 15, 2009 11:56 am at 11:56 am |
  8. Armand from AZ

    Not to sound paranoid here, but did anyone else notice that when the banks whined about how "broke" they were, the market tanked? They got billions, and all of a sudden the market rallies for 17 straight weeks. All of a sudden, they are ready to pay back? Sounds like someone made some money off of investments they made during a crisis they created...

    June 15, 2009 11:56 am at 11:56 am |
  9. J.P.

    Oh come now! Why so soon?

    TARP is "Exibit A" to bolster conservatives' claims GWB was NOT a conservative. The man was a second generation, country-club, Rockefeller "republican."

    Conservatives got hoodwinked by the blue-blooded, East Coast liberal Bushes.

    With Bush's big spending ways, I'm amazed liberals didn't swoon over Du(m)bya like they did with McCain.

    June 15, 2009 12:01 pm at 12:01 pm |
  10. Melissa

    Boy Republicans really hate it when something the Democrats do actually works. So they propose stopping whatever it is thats actually working so that it stops working and they can lord over everyone how the Democrats didn't fix it. Very tired of Republican bull.

    June 15, 2009 12:02 pm at 12:02 pm |
  11. Brandon

    This is sound judgment. The TARP program should be unwound as quickly as possible, while keeping the stability of the financial system in mind.

    June 15, 2009 12:04 pm at 12:04 pm |
  12. Steve

    How could Thune have endorsed Crist over Rubio in Fla.?

    June 15, 2009 12:09 pm at 12:09 pm |
  13. Will-South Dakota

    8 Years of GOP RULE under BUSH....now they want to clean up the mess they allowed.....the DEMS have a plan that worked and the GOP wants to scrape....reflects how little they care about Americans.

    June 15, 2009 12:12 pm at 12:12 pm |
  14. John G

    @ James...Fair enough but if an institution is not solvent then why not let it fail on it's own merit instead of dumping billions of dollars into it and then requiring it to jump through hoops to pay the money back?

    June 15, 2009 12:16 pm at 12:16 pm |
  15. CF

    Thune's an idiot. He protests "pork" and spending, yet wants millions of dollars for a bomber project in his home state. He flies a taxpayer funded jet from his taxpayer funded job to his home state where he walks down a tax funded street to a tax funded park to attend a Tea Party rally to protest taxes and spending.
    He has no ideas or solutions, just to blindly go against whatever Obama and Democrats say or do, without offering anything.

    June 15, 2009 12:16 pm at 12:16 pm |
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