Sheldon
Senior Member
- Apr 2, 2010
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http://www.nytimes.com/2010/10/01/business/01tarp.html?_r=2&hp
Good news. But if TARP proves to be a moneymaker for the government, it could lessen the distinctive to bailout large corporations in the future.
But the once-unthinkable possibility that the $700 billion Troubled Asset Relief Program could end up costing far less, or even nothing, became more likely on Thursday with the news that the government had negotiated a plan with the American International Group to begin repaying taxpayers.
The Congressional Budget Office, which had a slightly higher loss estimate initially, in August reduced that to $66 billion.
Now Treasury reckons that taxpayers will lose less than $50 billion at worst, but at best could break even or even make money. Its best-case assumptions, however, assume that A.I.G. and the auto companies will remain profitable and that Treasury will get a good price as it sells its corporate shares in coming years.
Whatever the final losses from housing, auto companies, A.I.G. or smaller banks, those will be offset by taxpayers profits from the big banks that have been the focus of their ire since 2008.
Good news. But if TARP proves to be a moneymaker for the government, it could lessen the distinctive to bailout large corporations in the future.