Yesterday, the U.S. Treasury's Office of Financial Stability (FINSTAB) released its "Citizens' Report on the Troubled Asset Relief Program" for fiscal year 2009. According to the report, $170 billion of the $240 billion invested in the banking system under TARP has been repaid as of February 15, 2010, and as of December 31, 2009, taxpayers have received $17.2 billion in income from TARP investments. Treasury is authorized to purchase or guarantee up to $700 billion in troubled assets under the Emergency Economic Stabilization Act (EESA), but Herb Allison, the Assistant Secretary for FINSTAB, estimates that only $550 billion of this authorization will be utilized, the majority of which will eventually be repaid. Mr. Allison also feels that due to "careful stewardship of the program, losses on TARP investments are likely to be significantly lower than previously expected."

For the immediate future, FINSTAB says that its plans for exiting TARP include the following strategies: winding down the government programs put in place during the crisis; limiting 2010 commitments to mitigating foreclosures, stabilizing the housing market and facilitating small business lending; limiting use of EESA funds to immediate and drastic threats to the economy due to financial instability; and managing and disposing of Treasury's investments in a commercial and fiscally sound manner.