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Is TARP Working or Not?

WASHINGTON, DC-New figures from the Treasury Department suggest that bank failures are on the rise but Professor Linus Wilson, who has been tracking this, tells GlobeSt.com that the situation is going to improve.

By Erika Morphy | Updated on December 28, 2010

WASHINGTON, DC-New figures released by the Treasury Department and analyzed by such media outlets as the Washington Post and the Wall Street Journal suggest that TARP –the widely-criticized government bailout of the US financial system in 2008–is not working as well as intended. Nineteen financial institutions that received assistance from the bailout have missed six or more dividend payments required under the program, the Washington Post reports. Last quarter that number was seven. Furthermore, the number of banks that failed to make at least one of these payments reached 132 as of 4Q10. 

The Wall Street Journal found, after analyzing Treasury Department data, that 98 US banks which participated in TARP are showing signs they are in jeopardy of failing. This is up from 86 in the second quarter 2010. These 98 institutions received more than $4.2 billion in TARP funding.

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