Vast majority of federal bail-out money repaid - KWWL - Eastern Iowa Breaking News, Weather, Closings

Vast majority of federal bail-out money repaid

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WASHINGTON (AP) -- Congress' independent budget agency says the cost to taxpayers of the contentious $700 billion financial rescue has dwindled down to $25 billion.

The Congressional Budget Office estimates that as of this month the government will recoup most of the money spent.  The $25 billion represents un-recouped money spent to bail out insurance giant American International Group and automakers Chrysler and GM.

The brighter prospects are the result of repurchases of preferred stock by recipients of bailout funds; a lower estimated cost for assistance to AIG and to the automotive industry and lower participation in mortgage assistance programs.

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