Reporting from Washington —
The Obama administration on Tuesday estimated that the $700-billion financial bailout fund would cost taxpayers $51 billion — and possibly 43% less if the government succeeds in recouping the money it put into insurer American International Group Inc.
In a report issued two days after the formal end of the Troubled Asset Relief Program, the Treasury Department said that it still expected to incur “substantial losses” from the separate government seizure of housing giants Fannie Mae and Freddie Mac.
But even with those bailouts, the department repeated its estimate that the cost of all the government’s bailout initiatives stemming from the 2008 financial crisis would cost less than 1% of the nation’s annual economic output, or about $145 billion.
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