by Calculated Risk on 12/07/2009 12:16:00 AM
Monday, December 07, 2009
Treasury Forecasts Smaller Loss from TARP
From the NY Times: U.S. Forecasts Smaller Loss From Bailout of Banks
The Treasury Department expects to recover all but $42 billion of the $370 billion it has lent to ailing companies since the financial crisis began last year, with the portion lent to banks actually showing a slight profit, according to a new Treasury report.And from the WSJ: Estimated TARP Cost Is Cut by $200 Billion
The new assessment of the $700 billion bailout program, provided by two Treasury officials on Sunday ahead of a report to Congress on Monday, is vastly improved from the Obama administration’s estimates last summer of $341 billion in potential losses from the Troubled Asset Relief Program. ...
The officials said the government could ultimately lose $100 billion more from the bailout program in new loans to banks, aid to troubled homeowners and credit to small businesses.
The article notes that this will reduce the deficit significantly this year.