Treasury Set to Cut Tarp Cost Estimate (actual cost at $66 billion)

[sabra]

Source: CNBC/FT

The Obama administration is set to lower its estimate of the cost of the troubled asset relief programme when it celebrates the end of the bail-out effort next week, senior administration officials say.

Many in the administration have become exasperated that the $700 billion scope of the programme is often used in describing it and that it is widely seen as a Democratic initiative when it was created by the Bush administration and backed by almost half of House Republicans.

The Congressional Budget Office now pegs the actual cost at $66 billion but the Treasury is expected to produce a lower estimate next week. Some officials and executives whose companies still owe Tarp money believe the final tally could see the government make a profit, depending on the initial public offering of General Motors and eventual sale of shares in AIG.

Tim Geithner, Treasury secretary, gave his strongest defence of Tarp on Wednesday ahead of its two-year anniversary and offered congratulations to those Republicans who backed it.

Saying it was now recognised as “one of the most effective emergency programmes in financial history”, Mr Geithner told officials, and later lawmakers, that there was “something to embrace about Tarp”.

Read more: http://www.cnbc.com/id/39325160

[toddwv]

1. Keep the higher CBO number

Trying to push the lower number for TARP will be seen as just tying to lowball to affect public opinion.

[Po_d Mainiac]

2. ...