Bank of America repaid its $45 billion debt, an action expected to prompt other banks to repay their bailout money, and now the Treasury Department will extend the Troubled Asset Relief Program beyond Christmas and New Year’s Eve, past Easter straight through to Halloween of 2010.
Just as homeowners face new requirements in the extended version of the first-time home buyer tax credit, TARP will be striped with updates to its coverage. While TARP is now projected to cost less over a 10 year period, it will be limited to foreclosure prevention and providing capital to small banks and businesses, hoping to shade business and consumer loans from the sun of a harsh economy.
It may not be a new bank holiday, but the Treasury Department vows to give out goodies into Fall of 2010.
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