October 21, 2012
THANKS, W:
CBO Lowers Estimated TARP Costs by 25% (Michelle Smith, 10/12/12, Moneynews)
The massive bailouts of 2008 are still a contentious issue, but those critics who point to the costs seem to have a little less ammunition, as the Congressional Business Office (CBO) now estimates that Troubled Asset Relief Program (TARP) will cost $24 billion, 25 percent less than previously expected.TARP was initially positioned to purchase troubled mortgage assets from banks, but was ultimately used to inject capital directly into financial institutions in return for preferred equity stakes, according to Forbes.The initial losses will not come from that first round of spending, as all of the initial bank investments have been repaid, Forbes added.
The main danger of TARP was always that it would work too well and offer temptation in the future.
Posted by Orrin Judd at October 21, 2012 8:42 AM
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