CBO raises TARP cost estimate to $34 billion

The new estimate is $15 billion more than the CBO calculated in its previous report.

But it is still “well below what was originally envisaged” when Congress created the $700 billion fund in 2008 to aid banks threatened by a rapidly unfolding financial crisis, it said…

However, the federal government will earn about $25 billion on other transactions it took to help financial institutions, reducing the cost of TARP to $34 billion, the CBO said.