Troubled Assets Relief Program favors large banks, says Chairwoman Warren

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The Troubled Assets Relief Program (TARP) places more burdens on small banks than on big ones, exacerbating the difference between financial institutions that are too big to fail and the rest, Congressional Oversight Panel Chairwoman Elizabeth Warren told CNBC Wednesday.

The Treasury said in a statement that around 700 small banks received TARP money and more than 98 percent of anticipated dividends were received, making $9 billion for taxpayers so far.

But small banks are still struggling, Warren said.

“It took them more than a year to get the money, they had very low participation rates, have problems paying it back,” she said.

One in seven small banks that took TARP money has already missed a dividend payment, and fewer than 10 percent have repaid the amount back to taxpayers, a Congressional Oversight Panel report released Wednesday showed.

Full story: Small Banks Burdened by TARP: Elizabeth Warren – CNBC