TARP lending to extend to October 2010
TEXT OF STORY
Bill Radke: Also in Washington this morning, the Treasury Secretary moved to extend the $700 billion Troubled Asset Relief Program into next year. The TARP bailout plan was meant to expire on December. What does an extension mean? Marketplace’s Ashley Milne-Tyte reports.
Ashley Milne-Tyte: Tim Geithner says continuing to lend from TARP funds will let the government respond if the financial system gets in trouble again. He’s says the administration needs to be able to cope with unforeseen threats. The government wants to keep lending some of the TARP money until the beginning of October 2010.
Chris Low is chief economist with FTN Financial. He says the administration already has support from some in Congress.
Chris Low: Congressman Barney Frank, who’s at the House Banking Committee, introduced legislation yesterday saying he’d like to use TARP to help troubled homeowners extend their mortgages.
There’s also the possibility of using the money to help small businesses.
These ideas aren’t popular with everyone in Congress. Many feel any unused or returned TARP money should be used solely to reduce the federal deficit.
I’m Ashley Milne-Tyte for Marketplace.
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