Treasury set to cut TARP cost estimate

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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.

Full story: Treasury Set to Cut Tarp Cost Estimate – CNBC