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Geithner Assumes Insurers In CPP

By Staff Writer

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The Treasury Department seems to be assuming that insurers will participate in the Troubled Asset Relief Program.

Treasury Secretary Timothy Geithner has included insurers along with banks in a brief discussion of expected TARP disbursements.

Geithner writes about the future TARP disbursements and other matters in a letter to Elizabeth Warren, the chair of the TARP Congressional Oversight Panel.

The Treasury Department has disbursed about $199 billion of the $250 billion allocated for the TARP Capital Purchase Program, Geithner writes in the letter.

“Although the CPP is still an ongoing program, the deadline for applications for most types of banks has passed, allowing us to estimate projected usage,” Geithner writes. “While there have recently been a significant number of withdrawals from smaller banks in the pipeline, our current estimate — considering future take-up from banks and insurance companies – is that $218 billion will be disbursed.”

A copy of the Geithner letter is available here.