22 July 2009, 18:03  Вailout of Wall Street may cost $23.7 trillion

The federal government’s bailout of Wall Street may cost $23.7 trillion, according to a statement given to Congress Monday by the lead overseer of the Treasury's bailout program. Neil Barofsky, special inspector-general for the Troubled Asset Relief Program (TARP), said that the US Treasury’s bailout program was fraught with “conflicts of interest,” “collusion vulnerabilities” and deliberate obfuscation of what banks are doing with the money they received from the government. He noted that there are 35 major fraud investigations related to the bailout, and that a substantial section of banks did not use their bailout funds to make new loans. The Treasury immediately denounced Barofsky's findings, claiming the figure of $23 trillion failed to adequately account for repayments on the government loans, which it claimed might actually earn the government money. Barofsky's report reads more like a police dossier on a money laundering operation than a report on the activities of a government agency. He notes that the Treasury—the branch of government responsible for overseeing a large part of the bailout—has repeatedly opposed calls for more transparency and stricter reporting standards, including those from his office. The report notes, “TARP has become a program in which taxpayers (i) are not being told what most of the TARP recipients are doing with their money, (ii) have still not been told how much their substantial investments are worth, and (iii) will not be told the full details of how their money is being invested.”

© 1999-2022 Forex EuroClub
All rights reserved