Officials Say That Bailouts Will Cost Less Than Originally Assumed
October 1, 2010
U.S. (ChattahBox Economic News) – Government bailouts have been one of the most heated voter issues to date. Few people seemed to support them, and even less support them now. There has been anger over the use of tax funds for executive bonuses, and the governments unwillingness to prosecute those actions. There have been calls to criminally charge those responsible for creating the need for TARP. Now, we are finally getting the real price tag, and it is less than we thought.
The NY Times is reporting that that A.I.G is attempting to work out a payment deal to start giving money back to the taxpayers. As one of the companies that most misused the funds they were given, they have become one of the most hated businesses in America. Because of this, the Obama Administration has been looking to cut all ties with them.
This pressure to make amends could have taxpayers seeing credits that would balance out the cost to bail them out in the first place. This is added to past payouts that show instead of the $70 billion originally feared, it may have only created a loss of $50 billion. While this is still high, it is still much less than feared.
TARP officially expires this week, ending the bailout program.