Auditor says Treasury keeps quiet on TARP money losers

The Hill ^ | 1-10-12 | Bernie Becker

[afraidfortherepublic]

The Treasury Department has been disclosing financial information about bailout programs in press releases only if the initiatives are expected to bring money in to the government, a new federal audit has found.

The Government Accountability Office found that financial information for Troubled Asset Relief Program initiatives that are projected to cost the government money long-term – like the injection of capital into the American International Group – were not included in Treasury releases.

“Although press releases for programs expected to result in a cost to Treasury provide useful transaction information, they exclude lifetime, program-specific cost estimates,” G.A.O., Congress’ investigative arm, said in its report.

Treasury, G.A.O. found, would include dollar figures for initiatives like the Capital Purchase Program, which was aimed at increasing capital in major banks and is expected to bring income in to the government over its lifetime.

In the end, Treasury agreed with the auditor’s recommendation that it include cost estimates for all TARP programs in its releases – whether they would cost the government money in the end or not.

During the 2008 fiscal crisis, Congress gave Treasury the authority to use up to $700 billion to help stabilize the markets. According to GAO, Treasury now estimates that the bailout will have a lifetime cost of $70 billion.

[Don Corleone]

The corruption in the government extends to its very soul.

[proxy_user]

The Treasury is a lot like my buddies, when we discuss our stock portfolios. “Losers? What losers?”

[DJ MacWoW]

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[gieriscm]

So, the government lied? Again? Really? Who would have thought?

[Incorrigible]

Bump

[org.whodat]

Why in the hell aig was bailed out and those crooks not put in jail is beyond me. I would bet the amount of money they owe is close to a trillion.

[Dilbert56]

It's important that TARP be viewed for what it was and not just a shortcut talking point.

• Most of the big Wall St. firms were forced to take the money and have since repaid it with interest.
• AIG cost us taxpayers billions
• GM was a perversion of the process and has also been costly to taxpayers. The Administration has been lying about it. They brazenly tell us GM has paid back everything but the fine print says "except for what they borrowed in 2007". Somehow their payments are LIFO? Their payments before 2008 didn't add to the deficit? It's lying by telling a partial truth. That's like telling a police officer: "Yes, I had two beers." and not mentioning that I then had three more.

The whole truth can only come out if Congress and the White House are occupied by people not involved in the program (i.e. 5-10 years from now).