The Treasury now estimates that over the next 10 years TARP will cost $141 billion at most, down from the $341 billion the White House projected in August. The reduction stems in large part from faster-than-expected repayments by some of the nation’s largest banks.
The government’s efforts appear to have helped stabilize the financial sector, and banks have already repaid the Treasury about $70 billion.
Bank of America Corp. has said it will return its $45 billion investment this week, and the government now expects total repayments to reach as much as $175 billion by the end of next year. Altogether, it invested $204 billion in 690 firms.
The Treasury has also collected more than $10 billion in interest and dividend payments from firms in which it has invested.