Cost Of TARP Drops To $25 Billion

Editor’s Note – The way the federal government is want to cook the books, not sure how trustworthy this information actually is.

With most Americans still not supportive of the actions taken at the beginning of the ‘financial crisis’, can this news be seen as a consolation prize for those concerns?

And, more importantly, would we be better off today had T.A.R.P. never came into being?

 

Cost Of TARP Drops To $25 Billion

By Vicki Needham
TheHill.com

The cost of the $700 billion Troubled Asset Relief Program has dropped to $25 billion, according to a report from the Congressional Budget Office. 

The Treasury Department’s program, largely criticized as a financial bailout for large Wall Street firms, has gradually been recouping money since its passage in October 2008, the nonpartisan CBO said in its fourth report released Monday. 

The current estimate is $25 billion, substantially less than the $66 billion estimate incorporated in the agency’s August baseline budget projections and the $109 billion estimate shown in the agency’s previous report on the TARP in March.

TARP was reluctantly passed toward the end of the Bush administration, about three weeks after former Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke made a late-night trip to Capitol Hill, urging lawmakers to help the financial sector from collapsing. 

The program has remained unpopular with the public despite its lowered costs. 

TARP, which expired in October, has distributed $389 billion and CBO estimates that an additional $44 billion more will be provided, most of it to AIG and federal mortgage programs. The restructured AIG bailout is expected to cost $14 billion instead of the initial estimate of $70 billion. 

About $216 billion has been repaid of the $433 billion total spent by TARP. 

AIG’s losses are expected to be covered by that $20 billion in profits from other TARP investments, the report said. 

Read More – http://thehill.com/blogs/on-the-money/banking-financial-institutions/131283-cost-of-tarp-drops-to-25-billion-

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Tom Tillison

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