Bailouts are shaping up to be cheaper than expected

The U.S. expects to recoup most of its bailout money. The $700-billion Troubled Asset Relief Program is projected to lose only $25 billion. But Fannie and Freddie are still consuming taxpayer funds.

By Jim Puzzanghera,
Los Angeles Times
February 28, 2011

Reporting from Washington

Almost three years after a series of government bailouts began, what many feared would be a deep black hole for taxpayer money isn't looking nearly so dark.

The brighter picture is highlighted by the outlook for the bailouts' centerpiece — the $700-billion Troubled Asset Relief Program.

"It's turning out to cost one heck of a lot less than what we all thought at the beginning," said Ted Kaufman, a former U.S. senator from Delaware who heads the congressionally appointed panel overseeing TARP.

In mid-2009, the program was projected to lose as much as $341 billion. That's been reduced to $25 billion — partly because of the controversial decision to pump much of the TARP money into banks instead of launching a large-scale purchase of securities backed by toxic subprime mortgages.

(More here.)

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