TARP failed Main Street banks

The Troubled Asset Relief Program's help has made little difference for small banks, according to the latest report by the Congressional Oversight Panel. The panel also warned that taxpayers could remain on the hook for small bank bailouts for years to come.

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"If TARP ultimately saves Wall Street but leaves behind smaller banks, the result could be that 'too-big-to-fail' banks grow even bigger," said Elizabeth Warren. Warren heads the five-member panel appointed by Congress to be the guardians of the $700 billion program that passed in October 2008 to stabilize the economy.

Treasury Department spokesman Mark Paustenbach countered that TARP is useful to small banks and is still providing relief.

"TARP has helped small banks, including by being able to provide loans and other services to consumers and businesses," Paustenbach said.Replica Rolex Explorer

A total of 707 banks have participated in what's called the Capital Purchase Program (CPP) -- better known as the bank bailout. Of those, 690 are considered smaller banks with assets that range from less than $1 billion to a $100 billion.

Most of the money has been paid back, and 13 of 17 Wall Street banks are now out from under the government's thumb. But of the 690 smaller banks that got a total of $40 billion, only $15 billion has been repaid.Replica Rolex GMT

The report argues that TARP called for a "one-size-fits-all" formula for all bank bailouts. That was a bad fit for small banks, which lack the same access to capital markets and the implicit guarantee that the government won't let them fail. Small banks are also disproportionately exposed to commercial real estate losses.Rolex DateJust Watches