Friday, March 30, 2012

CBO adjusts TARP payback projections

The federal bailout might not be a political winner, but it's looking a bit better on the government's finances.
In a new report released this week, the Congressional Budget Office (CBO) trimmed how much it expected the Troubled Asset Relief Program (TARP) would eventually cost taxpayers. It now expects that when all is said and done, the program will cost $32 billion, down $2 billion from its December estimate.That projection is rosier than even the White House's. The Office of Management and Budget (OMB) currently pegs the cost of the bailout at $68 billion, driven largely by greater expectations about the costs of the government's housing relief programs — OMB estimates $30 billion more than does the CBO on how much will be spent on those programs.

CBO attributed its reduction to the fact that the government's remaining $50 billion investment in American International Group (AIG) had gained value.

Read more: http://thehill.com/blogs/on-the-money/801-economy/219143-tarp-payback-projections-adjusted-upward

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