The Treasury Department said it expects the combined costs ofthe Troubled Asset Relief Program and other aid to AmericanInternational Group will be "about $30 billion."

Estimates of losses on the government's total estimated $182billion investment in AIG were released as part of anadministration report indicating that the government's final costof the TARP program overall will be a less-than-expected $50billion.

According to the report, the Treasury invested $40 billion inAIG and the additional funds were provided by the Federal Reserve,some of it through purchases of securities, placed in the FederalReserve Bank of New York's facilities that are now showingincreases in value.

In the report, the Treasury anticipated it will exit frominvestments in AIG and the automotive industry "much faster thananyone predicted."

The report said AIG has announced a restructuring plan that will"accelerate the timeline for repaying the government and puttaxpayers in a considerably stronger position to recoup ourinvestment in the company."

That, said the statement from Timothy Massad, acting assistantsecretary for financial stability, makes clear that "TARPworked."

"Two years later, our financial system is stable, more than $204billion of TARP funds have been repaid, only a quarter of theoriginal $700 billion authorization remains outstanding, the totalestimated cost of TARP has been cut by more than three-fourths,taxpayers have received $30 billion in income, and the TARP bankprograms are on track to make solid returns for taxpayers," hesaid.

Mr. Massad said costs of the program are expected to come fromlosses related to TARP investments in auto companies andinitiatives to help responsible homeowners avoid foreclosure.

NU Online News Service, Oct. 5, 3:50 p.m.EDT

WASHINGTON–The Treasury Department said today that itexpects the combined costs of the Troubled Asset Relief Program andother aid to American International Group will be "about $30billion."

The estimates of losses on the government's total estimated $182billion investment in AIG was released as part of an administrationreport indicating that the government's final cost of the TARPprogram overall will be a less-than-expected $50 billion.

The report said that Treasury invested $40 billion in AIG andthat the additional funds were provided by the Federal Reserve,some of it through purchases of securities placed in FederalReserve Bank of New York facilities that are now showing increasesin value.

In the report, Treasury predicted that it will exit frominvestments in AIG and the automotive industry "much faster thananyone predicted."

The report said AIG has announced a restructuring plan that will"accelerate the timeline for repaying the government and puttaxpayers in a considerably stronger position to recoup ourinvestment in the company."

That, said the statement from Timothy Massad, acting assistantsecretary for financial stability, makes clear that "TARPworked."

"Two years later, our financial system is stable, more than $204billion of TARP funds have been repaid, only a quarter of theoriginal $700 billion authorization remains outstanding, the totalestimated cost of TARP has been cut by more than three-fourths,taxpayers have received $30 billion in income, and the TARP bankprograms are on track to make solid returns for taxpayers," hesaid.

Mr. Massad said costs of the program are expected to come fromlosses related to TARP investments in auto companies andinitiatives to help responsible homeowners avoid foreclosure.

Also in the news, AIG asked a federal judge to deny class-actionstatus to a lawsuit brought against it by a group of insurancecompanies alleging AIG underreported premiums on workers'compensation policies.

According to a filing in the U.S. District Court in Illinois,AIG is being sued by a group, led by Liberty Mutual, now seekingclass-action status. AIG said the "barebones memorandum in supportof their motion for class certification contains no meaningfuldiscussion of why the specific allegations, facts and circumstancesof this case warrant certification."

The group alleges AIG underreported workers' compensationpremiums to residual insurer National Workers' CompensationReinsurance Pool (NWCRP).

AIG has also filed suit against the group of insurers, allegingthey did the same thing. Liberty Mutual, The Hartford FinancialServices Group, Travelers Insurance Group, Chubb Group of InsuranceCompanies and Ace INA Holdings are named as defendants.

Each side claims the underreporting threw off the insurers'share to the pool, to which they all contribute.

In June U.S. District Court Judge Robert W. Gettleman of theNorthern District of Illinois denied AIG's request to dismissLiberty Mutual's claims on behalf of the group of insurers. JudgeGettleman also denied AIG's claim for unjust enrichment. However,the judge did rule that AIG could proceed with its lawsuit.

In AIG's latest filing, the insurer said the case is "far fromthe type of case for which the class action mechanism wasdesigned," adding that the insurers are alleged to have taken partin the same conduct, "thereby making class certificationparticularly inappropriate."