The Treasury Department will shut down a program to provide additional assistance to some of the nation's largest bailed-out companies, saying that most no longer need the help.
Of the 19 financial institutions and automakers eligible for the Capital Assistance Program, only GMAC, the auto lender, requires further financial aid, Treasury said.
The program was initially created to support companies that were forced under the terms of the overall bailout initiative to submit to stress tests of their stability. Aside from GMAC, all passed their examinations in May of this year and have no further need for government money.
The Obama administration initially estimated that the CAP program would require up to $750 billion in additional expenditures. It later withdrew a budgeting request to Congress, and government officials in recent months have signaled general confidence that the overall bailout program would be less expensive than initially feared.
GMAC, the only company in the group not to meet Treasury's standards, will receive between $2.8 billion and $5.6 billion in additional bailout funding, according to recent report by the Wall Street Journal. The Treasury said yesterday that any such funding would come from the Troubled Asset Relief Program, the master bailout initiative, and not from CAP.
The government also plans to offer GMAC $2.9 billion in additional loan guarantees, the Journal reported. The company has received $12.5 billion in bailout assistance since the onset of last year's financial crisis.
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