March 31st, 2011
Econintersect: CBO's current estimate of the cost of the Troubled Asset Relief Program (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. This is down from their last estimate of $25 billion. Follow up:
The reduction in the estimated cost results primarily from a lower assessment of losses from assistance provided to the automotive industry. CBO's current estimate is well below OMB's latest estimate of $64 billion, largely because of different assessments of the cost of the Treasury's housing programs under the TARP.