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Monday, December 07, 2009

Treasury Forecasts Smaller Loss from TARP

by Calculated Risk on 12/07/2009 12:16:00 AM

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.

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.
And from the WSJ: Estimated TARP Cost Is Cut by $200 Billion

The article notes that this will reduce the deficit significantly this year.