June 15th, 2009
10:40 AM ET
9 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. Gary

    YES! We never should have done TARP, lots of missing and wasted money both by the Bush team and the Obama team. We should recover as much of our money as possible from the banks and stop the TARP nonsense.

    June 15, 2009 11:01 am at 11:01 am |
  2. Dutch/Bad Newz, VA

    Well so far we've received around 2.5 billion back. That's a start. But from what I recall, TARP was needed to stop the collapse of the economy. We're not out of the woods yet. I like many others don't like government involvement in the private sector, but the economic times we are living in require that they did. Let's not forget either who brought forth TARP. GWB

    June 15, 2009 11:01 am at 11:01 am |
  3. Dawn in Pa

    Ok, so when the major banks pay that back, lets pay off our debt to China and we can build up our finances to stand on our own two feet...

    June 15, 2009 11:02 am at 11:02 am |
  4. lynn in NM

    Isn't it amazing? As soon as CEO compensation was brought into the picture, the banks and insurance companies didn't need the money. The workers don't count, but the CEO's must get their bonuses and outrageous pay.

    June 15, 2009 11:04 am at 11:04 am |
  5. RealityKing

    "won their release"

    Everyone wants out of the governemt run financial prison...

    June 15, 2009 11:05 am at 11:05 am |
  6. I laugh at Limbaugh daily

    Wont happen Thune.Hes just another rightwing radical nobody.These guys look like test tube babies,were they all made at the same lab?

    June 15, 2009 11:06 am at 11:06 am |
  7. Observant

    I totally support Rep. Jeb Hensarling proposal. and hope that more banks follow the lead of the few that have paid thier loans backs. In addition, I am in opposition to any bailout to other industries, insurance, auto firms, housing, etc. The government has failed in running this country for the past decade, let the banks and business fail or make it own theit own. No one is bailing out the American people, and government taken over is certainly not the answer.

    June 15, 2009 11:09 am at 11:09 am |
  8. Rational4Liberty

    YES! No more bailouts! no more economic policy based on fear! no more rushing through bills with doom and gloom predictions of what will happen if nothing is done!


    June 15, 2009 11:10 am at 11:10 am |
  9. John G

    Why do private institutions need to "win" the right to pay back billions of tax payer dollars, get out from under federal control and do whatever they want?

    June 15, 2009 11:11 am at 11:11 am |
  10. GI Joe

    For a party that had no ideas and nothing positive for 8 years they sure do have more than their fair share of propaganda and criticism of anyone trying to do something about the "8 year hole" we're in.

    June 15, 2009 11:15 am at 11:15 am |
  11. phoenix86

    End TARP, and terminate the porkulus package. Then the government won't need to keep printing money or borrowing more from China.

    June 15, 2009 11:15 am at 11:15 am |
  12. george

    Financial prison?I remember when they where begging to get in.

    June 15, 2009 11:18 am at 11:18 am |
  13. katiec

    Why, CNN, does your headline not read "the party of no" wants to end TARP?? I do not believe any of these obstructionists deserve to be labled as lawmakers as they are lawdestroyers. And country destroyers. And enemies of middle class America, supporters of
    big business. Trying to deny everyones health care but their own.
    Continuing to tout tax cuts for the rich and big business. Have lost all integrity and credibility Put their party and politics as usual over the survival of our country.
    Why are these unpatriotic, pathetic excuse for politicians even getting headlines? Why are fact checks never done on their statements?

    June 15, 2009 11:18 am at 11:18 am |
  14. RobertO

    TARP under Bush good.

    TARP under Obama bad.

    So says the unbiased GOP.

    June 15, 2009 11:20 am at 11:20 am |
  15. Pat, CA

    lynn in NM June 15th, 2009 11:04 am ET
    Isn't it amazing? As soon as CEO compensation was brought into the picture, the banks and insurance companies didn't need the money. The workers don't count, but the CEO's must get their bonuses and outrageous pay.
    So it's OK for the government to parce out what IT thinks is a fair bonus or compensation? Guess that would also apply to the "workers," right? Never mind incentive to perform and produce.

    And how about everyone get a 10×10 room to live in, two colorless uniforms, two bowls of rice a day, a moratorium on how many children you can have? Yeah - that worked REAL well in China!

    But it's good to know that you, lynn, would be the first to decline a company bonus or "outrageous" pay!

    June 15, 2009 11:21 am at 11:21 am |
  16. Henry Miller

    Yes! Now! Do it!

    TARP was an insanely expensive disaster the moment it went into effect. I needs, very badly, to go away.

    June 15, 2009 11:23 am at 11:23 am |
  17. James

    @John G:

    To answer your question, this is because they need to prove their own solvency before they are able to operate as a financial institution. I know this point isn't made often in right-wing circles, but the US government IS the controller of who can run a bank in the US. I or you cannot just say " come one come all with your deposits". 🙂

    And then walk away with those deposits and not be a bank. Folks with this "leave business alone" mentality fail to realize the impact these large companies have on our countries' well-being. You blame the government for our problems, when it was our lack of oversight and big companies' greed that was at the heart of the cause.

    June 15, 2009 11:24 am at 11:24 am |
  18. Hugo

    I just can't believe some of the ignorance exhibited on these blogs, it just goes to show how our elected officials make it to office. Government should not have a hand in free enterprise, their job is to assure a fair and level playing field for legal competition. They failed quite profoundly at that task and now appear to want even more of a hand in trying to control what goes on in private enterprise. Why did Chris Dodd open up the hedge fund hole for "investment groups" to gamble with Americans retirement money? Why did GW open up the borders providing illegal labor to the corporate giants? Why should a talk show host or actor be able to sway a popularity vote in our elections? Why don't people understand that some of the problems we now are seeing are based on twenty years of wrong decisions by both parties? GREED at every level of our system, that is why.

    June 15, 2009 11:25 am at 11:25 am |
  19. Ted Tartaglia

    Just more evidence the party of NO trying to protect their friends on Wall Street. Remember it was Bush who started the TARP program with no restrictions and the banks were eager to take taxpayer money, but when President Obama and the Democrats put some strings on the taxpayer bailout, the banks are crying foul.

    If the free market system worked so well, why is the economy in the tank. It seems the party of NO has a very short memory.

    June 15, 2009 11:26 am at 11:26 am |
  20. Ted

    Considering most of the banks didn't want the TARP funds, have wanted to pay them back and the fed won't let them, this is long overdue. Time to call the administration's bluff and get the government influence out of the boardroom.

    June 15, 2009 11:27 am at 11:27 am |
  21. Mick

    Of course two right-wing GnOP Congressmen want to put an end to TARP, it's actually working and the loans it has received payment on have turned a PROFIT. The Repiglicans can't stand it when a program that benefits a large plurality of people actually works. That completely exposes their "Trickle Down Theory Economics" for the hypocritical fraud it is. The only "trickling down" that happened during the Bush years (zero job growth and zero average income growth) was trickling down from the Repiglican Top 1% onto the heads of the rest of America whose incomes didn't rise one single penny from the Clinton years when adjusted for inflation.

    Yes, Jeb let's put an immediate end to a program that is working and has saved the jobs of tens of thousands of average, everyday workers at banks and insurance companies. Of course, if this program were designed to save the jobs of a dozen or so CEOs, Jeb would be all for it but only if it gave each of them tens of millions of dollars.

    June 15, 2009 11:28 am at 11:28 am |
  22. James

    Yes, no more bailouts, let all companies fail, send us ALL to breadlines...of wait breadlines are socialism aren't they?

    You folks supporting big business at the expense of everyone else and bemoaning the right of the government (which Is US, by the way) to regulate them is what allows this greed and the companies to walk away with our money. Our government failed in the past decade because it did NOTHING to keep this in check. WE must be represented and not allow these corporations to walk away with OUR money. Where was this populist clammor when big companies walk away with OUR money???

    June 15, 2009 11:28 am at 11:28 am |
  23. Billy J in Texas

    Well, looks like telling the management they can't keep pigging out at the cookie jar has got their attention.

    Good Job! I am sure they will prioritize paying us back now, so they can return to their old habits, and then run their respective companies into the ground while making off with billions that should have gone to common stock holders and employees. But hey, at least we gave them a chance. I wouldn't trust a single big bank right now.

    June 15, 2009 11:32 am at 11:32 am |
  24. mjm

    Rep. Jeb Hensarling has the right idea.

    Just make sure that Barney Frank, Fannie and Freddie never take us there again.

    June 15, 2009 11:36 am at 11:36 am |
  25. Joanna

    I always thought is was funny when the automakers tried to get in on the action, but found out too late that the government realized their mistake in bailing out the banks. (which didn't need help anyway. Their CEO's could have bailed out their banks with their own bonus dollars). I'm sorry for the autoworkers, but nobody at the top cares about their employees. It's all about lining their own pockets and getting out as fast as they can. It's sad to hear the autoworkers complaining that it's Americans who buy foreign vehicles fault for what has happened. They have no clue that they have been used as slave labor for the feudal lords of the auto industry. Sad very sad how little people really know.

    June 15, 2009 11:38 am at 11:38 am |
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