The Obama administration estimates that almost all of the $700 Billion bailout will be recovered from the banks, the auto companies, the insurance company AIG, and mortgage giants Fannie Mae and Freddie Mac.  A year ago the administration estimated that the bailout would cost almost $500 Billion.  Part of the bailout purchased bank stocks, which have gained in value since the economy started to recover and once sold off will make a profit.  Bank loans are starting to be paid off in full with interest, leading to more financial gains for the government program.  The government is now estimating the true cost of the bailout will only be about $87 Billion.  The government will soon sell 1.5 billion shares of it’s total 7.7 billion shares in Citigroup purchased in 2009 for $3.25 a share.  Shares in Citigroup are now currently trading for $4.67.  Around $11 Billion is expected to be made in profit from the sale of Citigroup shares.

The federal deficit and the total national debt will now be lower that previously expected because of the lower costs from the TARP bailout.  The administration says that they expect the cost could fall even further and possibly even completely pay for itself.  Even without further lower estimates the current cost seems to be well worth the price to stabilize the world’s financial markets and prevent a global depression.