Troubled Asset Relief Program (TARP): Implementation and Status [January 15, 2014] [open pdf - 424KB]
"The Troubled Asset Relief Program (TARP) was created by the Emergency Economic Stabilization Act (EESA; P.L. [Public Law] 110-343) in October 2008. EESA was enacted to address an ongoing financial crisis that reached near-panic proportions in September 2008. The act granted the Secretary of the Treasury authority to either purchase or insure up to $700 billion in troubled assets owned by financial institutions. This authority was granted for up to two years from the date of enactment and was very broad. […] The initial TARP Capital Purchase Program, however, directly added capital onto banks' balance sheets through preferred share purchases, rather than removing assets that had become liabilities through purchasing mortgage-related assets. […] The resulting Dodd-Frank Act (P.L. 111- 203) amended the TARP authority, including (1) reduction of the overall amount to $475 billion; (2) removal of the ability to reuse TARP funds that had been repaid; and (3) removal of the authority to create new TARP programs or initiatives. […] Overall budget-cost estimates for TARP have decreased significantly since the passage of EESA, with the most recent Congressional Budget Office estimates foreseeing $21 billion in costs and Office of Management and Budget estimates foreseeing $47 billion in costs. […] In the 113th Congress, oversight of TARP has continued, including a hearing held by a subcommittee of the House Committee on Oversight and Government Reform."
CRS Report for Congress, R41427