— The program reinforced the belief that large and interconnected companies will enjoy government support in times of crisis. That could encourage them to take unwise risks, eventually leading to another crisis and more bailouts.
— By failing to be transparent about bailout decisions and goals, the government fueled the public’s anger about the bailouts. That could tie politicians’ hands as they seek to respond to future crises.
— TARP cost less than expected, but part of the savings came from failed foreclosure-prevention programs that spent a fraction of what Treasury set aside.
— Much of the credit for stabilizing the financial system goes to other, less-transparent programs run by the Federal Reserve and the Federal Deposit Insurance Corp.
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