Estimate of TARP losses falls to $25 billion, far less than originally feared

[cal04]

The latest figure from the nonpartisan Congressional Budget Office on the $700-billion financial bailout fund — far less than originally feared — comes after a $66-billion loss forecast in August.
http://www.latimes.com/business/la-fi-tarp-20101130,0,3248933.story

The projected cost of the $700-billion financial bailout fund — initially feared to be a huge hit to taxpayers — continues to drop, with the nonpartisan Congressional Budget Office estimating Monday that losses would amount to just $25 billion.

That's a sharp drop from the CBO's last estimate, in August, of a $66-billion loss for the Troubled Asset Relief Program, known as TARP. Going back to March, the budget office estimated the program would cost taxpayers $109 billion.

The new, more optimistic forecast largely reflects money the Treasury Department has received as banks have repaid their loans and repurchased stock warrants. It also takes into account lower estimated costs for assistance to insurance giant American International Group Inc. and General Motors Corp., which recently held a highly successful initial public offering, the CBO said.

(snip)
"Clearly, it was not apparent when the TARP was created two years ago that the cost would turn out to be this low," the budget office said in its report. "At that time, the U.S. financial system was in a precarious condition, and the transactions envisioned and ultimately undertaken through the TARP engendered substantial financial risk for the federal government."

[mike_c]

1. those plucky wall street bankers sure came through for us all, didn't they?

Hip hip, hooray!

Ever notice that unless the government wants to sell us a bucket of horse manure, they make it a secret? I mean, everything's secret unless it reinforces the propaganda that keeps the privileged in power? I'm just sayin'.

[earthside]

2. Big Deal.

They "paid back" the taxpayer's money and the money the government borrowed from China at interest -- with money that the Fed created out of thin air to buy the banks' debt.

In the mean time, Goldman Sachs, Bank American and the rest of Timmy Geithner's pals completed their take over of the government.

Wow.

I'm underwhelmed.

[Skittles]

3. "just $25 billion"

:o