TARP $250bn injection a long process, offical 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