Another bank says goodbye to TARP

{mosads}“This repayment is another milestone in our efforts to wind down TARP and provide an additional profit for taxpayers on the program’s investment in banks,” said Treasury’s assistant secretary for financial stability, Tim Massad. “Replacing temporary government support with private capital is an important component of continuing to restore financial stability.”

When all is said and done, the government does not expect to turn an overall profit on the program, although it is coming in well below initial cost estimates. The Office of Management and Budget currently estimates the final price tag on the bailout will be $68 billion, and the Congressional Budget Office now expects the government to spend $32 billion on it. The losses on the program are expected to come primarily from portions devoted to housing relief, which were never intended to have funds recouped.

Further costs will likely be tied to the government’s bailout of the insurance company AIG, with further losses to come on the bailout of the domestic auto industry.