I’ve read that the Treasury approved 10 of the largest financial institutions to repay $68 billion in TARF today. I wonder what happen to repaid money? Reallocate to different sector? Retire? I am sure when they create TARF, it was stipulated. Does anyone know?
What’s TARF?
It’s like BARF, what happens after too many toxic assets. (presumably he meant TARP) Most likely TARP funds will be retained as a reserve in case treasury needs to fight future crises. Congress may demand that money back, but most likely it will sit there. The question is whether, if needed in a future crisis, Congress may expand permissible TARP uses to fight that crisis.
I mean, theoretically, over the long run it will go back into the budget, unless the give it to some other institution and lose it all.
Sorry for the confusion. I meant TARP. ‘F’ came from my head thinking Troubled Asset Relief ‘Fund’ instead of ‘Program’
BTW, there’s a TALF. It happens. TALF + TARP = TARF. Shouldn’t any dividends from TARP become a tax rebate check of some sort? Or does the “government” ownership only mean the bureaucracy and not the people?
Someone mentioned that the government still holds a bunch of detached warrants, so there is upside to the taxpayer, which would be good since we need something to help pay back all that debt we took on recently.
Well, someone better hurry the **** up and attach them to some assets and distribute. I didn’t pay my taxes to get common stock in GM… >.
I think the warrants are for bank stock, although I haven’t been keeping track of it closely.
TARF! “Not in here mister, this is a Mercedes”.