The US plans to slash the project costs of the Troubled Asset Relief Program (TARP) by over $200 billion, says a media report. Unveiled during the peak of the financial turmoil, the $700-billion TARP primarily provided fresh capital to the country's leading banks to tackle the raging crisis.
"The Obama administration, buoyed by a resurgent Wall Street, plans to cut the projected long-term cost of TARP by more than $200 billion, in a move that could smooth the way for the introduction of a new jobs program," the Wall Street Journal has reported.
According to the daily, the US Treasury anticipates that over the next 10 years, TARP would cost just $141 million, much lower than the White House's projection of $341 billion in August.
"The reduction stems in large part from faster-than- expected repayments by some of the nation's largest banks, as well as less spending on programs to help shore up the financial sector," the report said.
The Wall Street Journal pointed out that the lower-than- expected TARP losses could help the White House tap the remaining funds for a jobs program. Further, the revised estimates would help bring down the projected federal budget deficit since the White House would be able to assume less spending associated with the program, it added.
