Congress is expected to release the second $350 billion installment of the TARP after a vote around January 18th. Since lawmakers approved the massive bailout it’s been the object of great criticism.
Some say the money should have been used to buy toxic assets as originally intended. Others say the money should be more closely monitored by the banks who receive funds. Still others would like to see the money used to help homeowners stave off foreclosures.
Perhaps the one thing everyone can agree on is this– the TARP program should have been executed better that it actually was.
Barry Ritholtz, director of equity research at Fusion IQ is probably one of the most outspoken critics of TARP. In a blogpost titled“The Terrible Lessons of TARP” he writes, “We have avoided financial armageddon, but other than that, it has been an abject failure.”