Estimated $29 billion lost on federal bailoutsThe Treasury Department expects the federal bailout loss to be about $29 billion, with most losses in the housing finance program and auto rescue, according to The New York Times.
The Obama administration said it expected a $17 billion loss from its investments in General Motors, Chrysler and the auto finance companies and $46 billion loss from housing programs such as the Home Affordable Modification Program. The new figures include profits that offset some of the losses and arrive as the Obama administration is winding down the Troubled Asset Relief Program.
Treasury Department officials say the bailout has been successful because much of the program's money has been returned and the cost is far below the $350 billion once estimated. The Congressional Budget Office says the cost is at $66 billion.
To arrive at its figure, the Treasury Department added in a $22 billion profit it expects to receive on shares of A.I.G. stock. Otherwise, it would have reported a $51 billion loss instead of $29 billion.
In total, the Treasury Department has received back about $204 billion of the bailout funds, or a little more than half the money it gave. One positive aspect were bank paybacks; nearly 80 percent of the money given to banks has been paid back.
Date : 10/8/2010