Policy Memorandum: TARP Expenditure

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Policy Memorandum: TARP Expenditure

Policy Memorandum: TARP Expenditure

ANSWER


Now that most companies have stabilized, it is time the government should recover TARP funds.  Troubled Asset Relief Program was instituted in order to assist financial institutions to strengthen their financial base. Through the program the government invested billions of dollars and it was the largest measure that was taken by the government in response to the subprime mortgage crisis. The initial intention of the fund can be justified because the funds assisted financial institutions to stabilize. However, time has come that the government instill discipline on the financial institutions that received the money and recover all the money. Although most of the financial institutions that received the funds, it is time the government instill discipline by instituting windfall tax on executive packages to ensure that the public recover all the money that was spent on TARP funds.  The initial government fund that was expected to be used in TARP program was $356 billion but only $245 billion has been (US Government Accountability Office). The rest of the money should under TARP programs should be used to develop small enterprises that will provide employment to millions of Americans. Therefore the government should use TARP funds to develop small and medium enterprises that will provide employment to millions of Americans instead of concentrating on large enterprises that have already recovered from the shock of the financial crisis.