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Long-term cost of TARP lower than forecasted

By Ken Holman

The Wall Street Journal reports that the Treasury Department now estimates the long-term cost of the TARP, Troubled Asset Relief Program, will be $200 billion lower than initially forecast. Over the next 10 years, TARP will cost $141 billion at most, down from $341 billion the White House projected in August, the Wall Street Journal reports. Reduction is attributable to faster-than-expected repayments by some banks and less government spending on the financial sector which has improved this year.