TARP: It Couldn’t End Thune Enough

James Gattuso / November 18, 2009

In an era when legislation routinely exceeds 1,000 pages, the bill introduced by Sen. John Thune yesterday — at seven lines — doesn’t look like much. But looks can be deceptive. If adopted, those seven lines would guarantee the end of the Troubled Asset Relief Program (TARP), a critical first step toward putting federal finances, and the economy, back on the right track.

Under current law, TARP, which provided up to $700 billion to support troubled financial institutions, is scheduled to expire on December 31 of this year, but can be extended until October of next year if Treasury Secretary Tim Geithner call for an extension. Geithner hasn’t made any final decision yet, but all indications are that he will so request. The Thune bill, S. 2787, would take away this authority, ensuring that the program will end this year. (more…)