Did you know that we have a special inspector general overseeing government efforts to bailout portions of the private sector? The answer is "yes" we do and his name is Neil Barofsky. Mr. Barofsky, known as the TARP cop, gave his report recently to the Senate Finance Committee.
Here's what he said. He said that there is a discrepancy of $134.5 billion between his figures and those of the Treasury. (Not to worry. Its only $134.5 billion.)
This huge amount of $2.98 trillion is just about the same amount that the entire Federal government spent in 2008. Senate Finance Chairman Max Baucus said: "Its like having a second United States government dedicated solely to saving the financial system and that is truly surreal."
Mr. Barofsky also said that such huge sums of money "will inevitably attract those seeking to profit criminally." He further added that "we are looking at the potential exposure of hundreds of billions of dollars in taxpayer money lost to fraud."
In a separate report Mr. Barofsky said that his office has initiated an investigation into American International Group Inc. (NYSE: AIG) bonus payments and plans to investigate payments it made to counterparties as well.
What are you ideas on this whole process?
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Reader Comments (Page 1 of 1)
4-02-2009 @ 3:23PM
sonnype said...
Its beginning to look as if TARP was another way to transfer tax dollars to the wealthy.Little exlpanation of how this money is being used and where it is going.
4-03-2009 @ 4:06PM
cpayne said...
Summed up by saying, "It's only money... you'll make more".
The wealthy control everything. It only serves correct that the wealthy will be the ones getting more wealth when piles of money are sprayed around carelessly.
Did anyone think for a second that there would be any IOU's signed for any of the TARP funds? I didn't think so either.
This kind of winfall will never happen ever again. There is a shortage of "real" money.