The U.S. government's Troubled Asset Relief Program appears to have morphed into a capital-injection program for banks as officials focus on investing directly into financial institutions and less on troubled assets. The evolution of TARP caused mortgage-backed securities to rally in late September, only to fall again. At a conference Monday that was organized by SIFMA, Neel Kashkari, the Treasury official heading TARP, did not address plans to purchase troubled assets and instead focused on capital injections for banks. Click here to listen to Kashkari's comments or view other highlights from SIFMA's conference on TARP.

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