WASHINGTON, April 4 U.S. congressional budget
analysts have raised their estimate of the net cost to
taxpayers for the government's financial rescue program to $356
billion, an increase of $167 billion from earlier estimates.
The Congressional Budget Office had originally projected
the $700 billion Troubled Asset Relief Program would cost
taxpayers $189 billion.
The additional cost, which applies to TARP spending for
fiscal years 2009 and 2010, was included in the CBO's March
projection of a $1.8 trillion deficit for fiscal 2009, which
ends Sept. 30.
The TARP cost projection was raised due to changes in
financial market conditions, new transactions and a shift in
expected timing of payments, the CBO said.
The Treasury Department announced plans to use some of the
money to help avoid home foreclosures and made new deals with
Bank of America (BAC.N) and American International Group
(AIG.N). Those programs involved higher subsidy rates than
previously estimated, the report said.
Congress passed the Wall Street bailout program in October
with the goal of stabilizing banks and reassuring jittery
(Reporting by Lisa Richwine; Editing by Jackie Frank)