The Treasury Department official charged with overseeing the government's financial rescue efforts told lawmakers Thursday that the administration was looking for more ways to use the $700-billion financial rescue fund created earlier this year.
Speaking before a Senate subcommittee, Neel Kashkari, the Treasury Department's interim assistant secretary for financial Stability, also noted that officials must keep in mind that some funds might be needed down the road as the government continues its fight against the financial crisis.
"We continue to look at additional capital strategies and, as we do so, we will assess the impact of the first capital program and also take into consideration existing economic and market conditions," Kashkari said in prepared testimony before the Senate Appropriations Subcommittee on Financial Services and General Government.
Kashkari is overseeing the the government's Troubled Asset Relief Program, or TARP, which has up to $700 billion to spend on measures meant to stabilize financial markets after the turmoil caused by the housing meltdown.
The government has set aside $250 billion of TARP funds to buy direct equity stakes in banks in order to build up their capital and hopefully get them back to more normal lending practices.
This practice has sparked criticism from many lawmakers, who feel the TARP has moved away from its original intent, which included a goal to minimize foreclosures for home owners.
This charge was repeated at Thursday's hearing, with subcommittee chairman Richard Durbin, D.-Ill., saying, "Treasury has not taken full advantage of the authority we granted to minimize the number of foreclosures."
Kashkari said that the Treasury Department is doing what it can to fulfill the goals of the financial relief effort, though he noted that something must be left in reserve in case it is needed down the road.
"We continue to take necessary measures to ensure compliance with the letter and spirit of the requirements established by Congress," the Treasury official stated.
"As we consider potential new TARP programs, we must also maintain flexibility and firepower for this Administration and the next, to address new challenges as they arise," Kashkari also noted, echoing comments made by his boss, Treasury Secretary Henry Paulson, in previous speeches.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.