Each approach could build on the infrastructure that the Treasury developed when it was planning to purchase troubled assets directly. Moreover, as I noted earlier, purchases that include residential mortgages could be combined with steps to restructure some mortgages as needed to avert preventable foreclosures.
As you know, the ultimate cost of the TARP program to the taxpayer is likely to be far less than the total amount allocated, because the funds are not simply spent but are used to acquire financial assets, such as preferred shares in banks.