CBO: TARP Bank Bailout to Cost Government $19 Billion
The Congressional Budget Office estimates that the Troubled Asset Relief Program (TARP) – the bank bailout package passed in October 2008 – will cost taxpayers approximately $19 billion.
That estimate is down from the $25 billion CBO estimated in November 2010, due to CBO’s new estimates of the ultimate cost of the bailouts to General Motors and Chrylser.
“CBO estimates that the cost to the federal government of the TARP’s transactions (also referred to as the subsidy cost), including grants for mortgage programs that have not been made yet, will amount to $19 billion,” CBO said in its March 30 report.
The cost to government, CBO said, stemmed from the additional bailouts given to insurance giant AIG and the Obama administration’s mortgage modification program HAMP (Home Affordable Modification Program).
“That cost stems largely from assistance to American International Group (AIG), aid to the automotive industry, and grant programs aimed at avoiding foreclosures.”