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Administration reduces bailout cost estimate

Fri., April 23, 2010, 12:54 p.m.

WASHINGTON — Treasury Secretary Timothy Geithner is telling Congress that the administration believes the final cost of the government’s heavily criticized financial bailout effort could be as low as $87 billion.

Geithner made the new estimate in a letter Friday to congressional leaders that was obtained by The Associated Press.

A year ago, officials were estimating the bailout could cost as much as $500 billion.

The new estimate says the biggest losses will occur from the government’s support of mortgage companies Fannie Mae and Freddie Mac, the help provided homeowners facing foreclosure and the assistance provided to American International Group.



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