TARP $250bn injection a long process, offical warns

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

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource