Congressional Budget Office: TARP on track to cost government $27 billion

[Geee]

Washington Examiner:

The enormous bailout of the U.S. financial system at the height of the financial crisis in fall 2008 is on track to cost the federal government $27 billion, the Congressional Budget Office estimated in a report issued Thursday afternoon.

 

The now-infamous TARP, the Troubled Asset Relief Program, is on pace to have disbursed $438 billion of the $700 billion authorized by Congress in October 2008, when panic threatened to bring down the entire banking system. Those funds were distributed to large and small banks, failed insurance giant AIG and automakers General Motors and Chrysler, along with programs aimed at helping homeowners avoid foreclosures.

 

The total estimate of the budgetary cost of TARP is up $6 billion from last year's mandated report, because of higher anticipated spending on housing programs.