On January 16, the Congressional Budget Office (CBO) released a report titled, “The Troubled Asset Relief Program: Report on Transactions Through December 31, 2008.” The report, issued pursuant to the provisions of the Emergency Economic Stabilization Act of 2008, evaluates the U.S. Treasury Department’s activities under the Program (TARP), including capital purchases and loans to automotive companies.  

Additionally, the report provides a comparison of the CBO’s and the Office of Management and Budget’s (OMB) estimates of the costs and calculations of TARP transactions. The CBO estimates that distributing the first third of TARP will cost taxpayers $64 billion, 26% of the funds given out so far, while the OMB estimates it will cost $55 billion. The numbers, otherwise known as subsidy rates, are the difference between what the Treasury paid for investments and the market value of the investments. The subsidy rates for AIG and GMAC are over 50%.