Treasury Outlines Extension of and Exit Strategy for TARP

On December 9, Treasury Secretary Geithner outlined the Administration’s exit strategy for TARP. Geithner highlighted four elements of the strategy: (i) extending TARP until October 3, 2010 to maintain an adequate financial stability reserve, (ii) continuing to terminate and wind down government programs enacted to address the economic crisis, (iiii) managing equity investments acquired through the Emergency Economic Stabilization Act, and (iv) limiting new commitments in 2010 to: (a) foreclosure mitigation programs, (b) initiatives to provide capital to small and community banks, and (c) the expansion of TALF. Treasury Release.