Bailout Watchdog: Shutting Down TARP To Be Tricky, Government Does Not Have Plan To Address ‘Too Big To Fail’

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Bailout Watchdog: Shutting Down TARP To Be Tricky, Government Does Not Have Plan To Address ‘Too Big To Fail’

Of all the problems that plague TARP — including its lack of transparency and disclosure, shifting goalposts, and an unclear purpose — there’s one that has government auditors most concerned: the administration’s failure to articulate how it’s going to eliminate the implicit taxpayer-funded guarantees backstopping the nation’s biggest financial firms.

That’s one of the conclusions raised in a new report released Thursday by the Congressional Oversight Panel, detailing the challenges faced by the administration as it attempts to shut down the unpopular bailout program. Though slated to end in October, the government will likely continue to hold hundreds of billions of dollars in private assets beyond then. Unwinding those positions will be tricky. The panel wonders if the Treasury is up to the task.

Led by Harvard Law Professor Elizabeth Warren, the Congressional Oversight Panel was created by Congress to keep tabs on the bailout. Its monthly reports over the past year have kept an uncompromising critical light shined on the bailout. Its latest report was no different.

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