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624 Notes to Chapter 20

112. Fed Chairman Ben Bernanke, testimony before the House Financial Services Committee, The
Future of Financial Services: Exploring Solutions for the Market Crisis, September 24, 2008, transcript,
p. 48.
113. Mel Martinez, interview by FCIC, September 28, 2010.
114. The TARP legislation, drafted as the Emergency Economic Stabilization Act of 2008, was cou-
pled in Public Law 110-343 with several other vote-attracting acts, including the Energy Improvement
and Extension Act of 2008, the Tax Extenders and Alternative Minimum Tax Relief Act of 2008, the Paul
Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, and the Heartland
and Hurricane Ike Disaster Relief Act of 2008. Congress originally said that the deposit insurance cap
would revert to $100,000 at the beginning of 2010, but later extended the deadline through the end of
2013.
115. The quotation is part of the formal title of Public Law 110-343, of which the TARP legislation—
officially named the Emergency Economic Stabilization Act of 2008—is a part.
116. “Board Announces Creation of the Commercial Paper Funding Facility (CPFF) to Help Provide
Liquidity to Term Funding Markets,” Federal Reserve Board press release, October 7, 2008. The CPFF
complemented the Fed’s other commercial paper program, the AMLF, which was created shortly after the
Reserve Primary Fund broke the buck. While the AMLF targeted money market mutual funds, the CPFF
aimed to create liquidity for qualified commercial paper issuers.
117. Federal Reserve Board, “Commercial Paper Funding Facility (CPFF).”
118. Ken Lewis from Bank of America, Robert Kelly from BNY Mellon, Vikram Pandit from Citi-
group, Lloyd Blankfein from Goldman, Jamie Dimon from JP Morgan, John Thain from Merrill, John
Mack from Morgan Stanley, Ronald Logue from State Street, and Richard Kovacevich from Wells.
119. Paulson, testimony before the FCIC, May 6, 2010, transcript, p. 70. Former assistant treasury sec-
retary Phillip Swagel argued, “There is no authority in the United States to force a private institution to
accept government capital” (“The Financial Crisis: An Inside View,” Brookings Papers on Economic Ac-
tivity, conference draft, Spring 2009, pp. 33–34).
120. Henry Paulson, On The Brink: Inside the Race to Stop the Collapse of the Global Financial System
(New York: Business Plus, 2010), p. 365.
121. Dimon, interview.
122. The Temporary Liquidity Guarantee Program consisted of two programs, the Temporary Debt
Guarantee Program (TDGP) and the Transaction Account Guarantee Program (TAGP). The TDGP at its
highest point in May 2009 guaranteed $346 billion in outstanding senior debt; see “FDIC Announces
Plan to Free Up Bank Liquidity,” FDIC press release, October 14, 2008. The TAGP guaranteed $834 bil-
lion in deposits at the end of 2009.
123. “Factsheet on Capital Purchase Program,” FinancialStability.gov, updated October 3, 2010.
124. “Remarks by Secretary Henry M. Paulson, Jr. on Financial Rescue Package and Economic Up-
date,” Treasury Department press release, November 12, 2008.
125. Paulson, testimony before the FCIC, May 6, 2010, transcript, p. 70.
126. U.S. Treasury Department Office of Financial Stability, “Troubled Asset Relief Program”; Trans-
actions Report for Period Ending December 31, 2008: Capital Purchase Program;” “Factsheet on Capital
Purchase Program.”
127. U.S. Treasury Department Office of Financial Stability, “Troubled Asset Relief Program: Transac-
tions Report for Period Ending October 15, 2010: Capital Purchase Program.”
128. Office of the Special Inspector General for the Troubled Asset Relief Program, “Initial Report to
the Congress,” February 6, 2009, p. 6.
129. Congressional Oversight Panel, “September Oversight Report: Assessing the TARP on the Eve of
Its Expiration,” September 16, 2010, p. 27.
130. Office of Financial Stability, “Troubled Asset Relief Program: Two Year Retrospective,” October
2010, pp. 15, 51; AIG, “What AIG Owes the U.S. Government,” updated September 30, 2010.
131. Congressional Oversight Panel, “September Oversight Report,” p. 27; Office of Financial Stabil-
ity, “Troubled Asset Relief Program: Two Year Retrospective,” p. 18; “Taxpayers Receive $10.5 Billion in
Proceeds Today from Final Sale of Treasury Department Citigroup Common Stock,” Treasury Depart-
ment press release, December 10, 2010.