Treasury Secretary Timothy Geithner told Congress on Wednesday that the government’s financial bailout program, Troubled Asset Relief Program (TARP), will be extended until Oct. 3, 2010.
“The recovery of our financial system remains incomplete and near-term shocks to that system could undermine the economic recovery we have seen to date,” Geithner said.
He said new commitments financed by the fund will be limited to three areas, chief of which will be stepping up efforts to curb record-high home foreclosures. Geithner says this is necessary to stabilize the housing market and support an economic recovery.
Other targets will include providing capital to small banks and boosting a commitment to encouraging lending to consumers and small businesses.
Source: Associated Press, Jeannine Aversa and Daniel Wagner (12/09/2009)