TARP $250bn injection a long process, offical warns
TARP could take a long time before it starts to operate, top official warns
As the first application deadline for publicly traded companies for
assistance under the
Troubled
Assets Relief Program (TARP) nears this Friday, officials warn the injection
of up to $250bn (€196bn) of capital into the USA bank system could become a long
process.
Neel Kashkari, resonsible for implementing the sheme, yesterday told the
Securities Industry and Financial Market’s Associations’ summit on TARP in New
York the scheme could take many months, according to the Dow Jones
Financial News.
‘We have accomplished a great deal in a short period of time. But our work is
only beginning…the operational scale and complexity to execute hundreds or
even thousands of investments in banks across the country is extraordinary,’ he
said.
There are concerns that some banks may hoard the capital, rather than lending
it on as intended. Kashkari countered the argument, saying if that were the
case, shareholders would demand that the bank put the capital to the best use
possible, or watch their returns suffer.
Further reading:
PwC, E&Y clinch lucrative TARP contracts
Read
the DJ Financial News story