WASHINGTON (

TheStreet

) -- The Obama administration intends to extend the life of the $700 billion financial bailout fund until next October,

Reuters

reports, citing administration officials familiar with the matter.

One official said the administration was expected to pledge to use no more than $560 billion from the fund,

Reuters

reports.

The Troubled Asset Relief Program, which injected money into banks such as

Citigroup

(C) - Get Report

,

Bank of America

(BAC) - Get Report

and

Wells Fargo

(WFC) - Get Report

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, and insurer

American International Group

(AIG) - Get Report

, will expire on Dec. 31, unless extended.

The law that established the fund limits an extension of the program to October 2010, according to

Reuters

.

It was reported earlier this week that the U.S. government would lose $200 billion less than expected from the federal bailout program, and that President Obama was looking to use part of the savings to create new jobs.

At the end of November,

Reuters

reports, $560 billion had been allocated from TARP, the same amount the Obama administration is now expected to declare as a cap.

-- Reported by Joseph Woelfel in New York

.

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