Looking back, it's clear that TARP played a critical role in stabilizing the financial system during a period of historic crisis and has helped put our country on the path to economic recovery – at a fraction of the initiative's original projected cost.

With all the myths you've likely heard about TARP, though, sometimes the truth gets lost in the shuffle. Here are the facts:

TARP Helped Prevent a Second Great Depression

Independent experts have estimated that TARP, along with the government's other responses to the financial crisis, saved nearly 8.5 million American jobs, helping to prevent the recession from turning into another Great Depression. Economists Alan Binder and Mark Zandi estimated that without TARP and the other government interventions, U.S. real GDP would be 11.5 percent lower, and the unemployment rate would have peaked at 16.5 percent. They wrote that the federal government's policies "probably averted what could have been called Great Depression 2.0."

TARP Helped Main Street Banks and Small Businesses

TARP invested in more than 450 small and community banks. Moreover, lending by banks with less than $1 billion in assets that received TARP funds has grown more than by those that did not. And because small banks are a crucial source of credit for small businesses, TARP assistance for main street banks is helping provide the financing that small businesses need to expand and create jobs.

TARP Protected U.S. Manufacturing Jobs by Helping to Save the American Auto Industry

In the 12 months before President Obama took office, American auto companies lost hundreds of thousands of jobs, sales plunged 40 percent, and liquidation was a very real possibility. TARP investments in GM and Chrysler, as well as the hard decisions made by those companies in order to adapt and compete in the 21st century, have helped turn the industry around and save more than a million jobs. Since GM and Chrysler have emerged from bankruptcy, the U.S. auto industry has added more than 500,000 jobs – the strongest growth in more than 10 years – and all of the big three auto companies are now operating at a profit.

TARP Provided Immediate Relief to Struggling Homeowners

Treasury established several programs under TARP to stabilize the housing market. Since 2009, the Administration's Making Home Affordable Program (MHA) has helped more than two million families permanently modify their mortgages or receive other assistance. Families that have perminanently modififed their mortgages have typically saved approximately $500 each month. This program has also changed the industry by setting new standards for successful mortgage modifications and consumer protection, thereby helping millions more. And, in June 2014, Treasury announced it will extend the program to December 31, 2016.

TARP is Now Expected to Cost a Fraction of the $700 Billion Originally Authorized

Substantial increases in TARP repayments and declines in expected TARP expenditures have dramatically reduced the projected cost of the program. Treasury and the Office of Management and Budget (OMB) now project that the lifetime cost of TARP will be approximately $32.3 billion – significantly less than the $700 billion originally authorized.

We Are Getting Our Money Back – and Faster than Expected

As of October 31, 2016, cumulative collections under TARP, together with Treasury's additional proceeds from the sale of non-TARP shares of AIG, exceed total disbursements by more than $7.9 billion. (Treasury has recovered more than $442 billion or 101.8% of the disbursed amount when the $17.6 billion of non-TARP AIG funds collected is included.) And the Administration remains committed to passing a Financial Crisis Responsibility Fee to make sure taxpayers are fully repaid for any remaining costs of TARP.

TARP is Winding Down

The authority to invest money in investment programs through TARP ended on October 3, 2010. Since then, Treasury has focused on winding down TARP programs as quickly as possible, while ensuring financial stability and maximizing returns to the taxpayer.

No More TARPs

President Obama and Treasury Secretary Geithner worked tirelessly with Congress to enact the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which addresses the regulatory shortcomings that contributed to the 2008 financial crisis and made TARP necessary. That law safeguards consumers and investors, helps the government to better monitor and limit risk, and provides new tools to break up and wind down firms whose imminent failure could threaten the health of the economy. More about Wall Street Reform.