US likely to lose 29 bn on bailout efforts

In its report on TARP released on Tuesday,the Treasury Department pegged the losses from the initiative at around USD 29 billion.

Auto and housing programmes alone would result in combined loss of USD 63 billion.

Gains from TARP investments in banks and certain other investments in battered insurer AIG,would partially offset the total losses,according to the official data.

The unprecedented TARP initiative was started on October 3,2008,at the height of the financial meltdown. The crisis worsened after the fall of then Wall Street giant Lehman Brothers in September 2008.

Against the backdrop of recent restructuring efforts by AIG,the total cost of TARP would be around USD 50 billion.

AIG,which gulped down a major chunk of the funds,last month announced plans to repay taxpayers8217; money.

8220;8230; the total cost of TARP will be about USD 50 billion. In addition8230; Treasury estimates that the combined cost of TARP programs and other Treasury interests in AIG will be about USD 30 billion,8221; Treasury Department noted in a statement.

Further,it said that TARP played a critical role in recapitalising the financial sector and restarting the credit markets.