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Strategic Objective

Wind down emergency financial crisis response programs

Strategic Objective

Lead Office: Domestic Finance

Themes:

General Government

TREAS.gov

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Overview
Progress Update

Overview

The programs put in place under the Troubled Asset Relief Program (TARP)[1], along with other emergency measures put into place by the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (FDIC), helped prevent the collapse of the U.S. financial system in 2008. With a stabilized national economy showing steady growth, Treasury must finish the course and wind down these emergency measures. We aim to wind down these programs in a manner that balances speed of exit with maximized taxpayer return.

[1] About TARP. Available at at ht

Progress Update

The emergency financial crisis response programs continue to wind down effectively. In December 2014, the Troubled Asset Relief Program (TARP) fully liquidated its investment in Ally Financial and realized cumulative receipts of $19.6 billion ($2.4 billion more than invested). The ultimate cost to taxpayers of TARP programs dropped from the FY 2009 estimate of $341.0 billion to $37.2 billion as of September 2015. TARP’s foreclosure prevention programs provided more than 1.5 million homeowners with permanent mortgage modifications, which equates to approximately $38.7 billion in realized monthly mortgage payment savings for these homeowners.

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Strategic Goals

Strategic Goal:

Promote domestic economic growth and stability while continuing reforms of the financial system

Statement:

Promote domestic economic growth and stability while continuing reforms of the financial system

Strategic Objectives

Promote savings and increased access to credit and affordable housing options

Statement:

Promote savings and increased access to credit and affordable housing options

Description:

Over the next four years, Treasury will work to provide tools to the American people to help them build a stable financial future and grow the nation’s economy. Treasury will endeavor to enable Americans to invest in their future – whether in higher education or in hard-earned retirement. We will continue to support the Administration’s efforts to lower barriers so that entrepreneurs and businesses can innovate, grow, and hire. We will also continue to bolster programs that provide Americans with the fundamental ability to secure a place to call home, whether through renting or buying. We will promote housing finance reform, which would create jobs, spur growth, and provide revenue at the local and state level, and when financed properly, enable Americans to build assets for long-term financial security.

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Wind down emergency financial crisis response programs

Statement:

Wind down emergency financial crisis response programs

Description:

[1] About TARP. Available at at http://www.treasury.gov/initiatives/financial-stability/about-tarp/Pages/default.aspx.

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Complete implementation of financial regulatory reform initiatives, continue monitoring capital markets, and address threats to stability

Statement:

Complete implementation of financial regulatory reform initiatives, continue monitoring capital markets, and address threats to stability

Description:

The Dodd-Frank Act addresses key gaps and weaknesses in the financial regulatory structure that contributed to the financial crisis. These reforms are designed to help better protect American families and businesses, level the playing field, and educate and protect consumers.

As a part of the Dodd-Frank Act, several new entities were established. Among these the Financial Stability Oversight Council (FSOC)[1], which is chaired by the Secretary of the Treasury and brings together federal financial regulators, state regulators, and other financial experts to monitor and address threats to financial stability. The Office of Financial Research (OFR)[2] sits within Treasury and provides the FSOC with critical data and analytical support to achieve its mission. The Federal Insurance Office (FIO)[3], also within Treasury, monitors all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the U.S. financial system.

While Treasury has made significant progress in implementing these reform initiatives, there is still work to do in solidifying their roles and functions within the regulatory landscape to help ensure that our financial system is more transparent, better capitalized, less leveraged, and far safer.

[1] Financial Stability Oversight Council. Available at http://www.treasury.gov/initiatives/fsoc/Pages/home.aspx

[2] Office of Financial Research. Available at http://www.treasury.gov/initiatives/ofr/Pages/default.aspx.

[3] Federal Insurance Office. Available at http://www.treasury.gov/initiatives/fio/Pages/default.aspx.

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Facilitate commerce by providing trusted and secure U.S. currency, products, and services for use by the public

Statement:

Facilitate commerce by providing trusted and secure U.S. currency, products, and services for use by the public

Description:

One of Treasury’s most visible responsibilities is to reliably provide safe, secure, cost-effective, and high-quality U.S. currency notes and coins that are readily accepted by all users. In addition to currency production, Treasury also facilitates commerce by regulating alcohol and tobacco products and producers to ensure that American businesses operate in a fair, competitive marketplace and provide complete and accurate information to consumers about alcohol products. These functions facilitate seamless and stable commerce, which is a necessary condition for domestic growth and stability.

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