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Update on Treasury Department's Progress in Implementing Troubled Asset Relief Program

Interim Assistant Secretary for Financial Stability Neel Kashkari Remarks before the Institute of International Bankers, October 13, 2008

  • “On Friday October 3, Congress passed and President Bush signed into law the bipartisan Emergency Economic Stabilization Act of 2008. The law gives the Treasury Secretary broad and flexible authority to purchase and insure mortgage assets, and to purchase any other financial instrument that the Secretary, in consultation with the Federal Reserve Chairman, deems necessary to stabilize our financial markets — including equity securities. Treasury worked hard with Congress to build in this flexibility because the one constant throughout the credit crisis has been its unpredictability. The law empowers Treasury to design and deploy numerous tools to attack the root cause of the current turmoil: the capital hole created by illiquid troubled assets. Addressing this problem should enable our banks to begin lending again. Our nation has successfully worked through every economic challenge we have faced and we are confident this new program will help us overcome these challenges as well. Today, I will brief you about…Treasury’s strategy to develop multiple tools under the Troubled Asset Relief Program…steps we have already taken to begin to implement the program…our next steps..”
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