By Daniel Costello
Treasury Secretary Timothy F. Geithner today used his authority to extend the $700-billion Troubled Asset Relief Program, or TARP, until Oct. 3, 2010.
In a letter to House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, Geithner said the administration was winding down its use of the controversial bailout fund but wanted the continued flexibility provided by the funds.
Under the law created last year at the height of the financial crisis, the program was set to end on Dec. 31 unless the administration requested a near-automatic extension.
Geithner told the congressional leaders that "the recovery of the financial system remains incomplete. And near-term shocks to that system could undermine the economic recovery we have seen to date."