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TARP Watchdog: Bailouts May Cost US $24T

Number based on 'hypothetical maximum,' Treasury counters

By Harry Kimball,  Newser Staff

Posted Jul 20, 2009 3:41 PM CDT
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(Newser) – The special inspector overseeing Treasury’s TARP program says federal assistance to banks and other financial entities could end up costing taxpayers $23.7 trillion, Bloomberg reports. Aside from the $700 billion bailout, Neil Barofsky says in testimony prepared for told Congress tomorrow, other trillion-dollar federal programs could balloon. “TARP has evolved into a program of unprecedented scope, scale and complexity,” Barofsky says.

The Treasury Department strenuously objects to Barofsky’s estimates, and says the US has spent less than $2 trillion to help troubled financial institutions. “These estimates of potential exposures do not provide a useful framework for evaluating the potential cost,” a spokesman says. “This estimate includes programs at their hypothetical maximum size, and it was never likely that the programs would be maxed out at the same time.”

Federal Deposit Insurance Corporation (FDIC) Chair Sheila Bair looks on at right as Treasury Secretary Timothy Geithner speaks.
Federal Deposit Insurance Corporation (FDIC) Chair Sheila Bair looks on at right as Treasury Secretary Timothy Geithner speaks.   (AP Photo)
Treasury Secretary Timothy Geithner.
Treasury Secretary Timothy Geithner.   (AP Photo)
Neil M. Barofsky, Special Inspector General for the Troubled Asset Relief Program.
Neil M. Barofsky, Special Inspector General for the Troubled Asset Relief Program.   (AP Photo)
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COMMENTS
Showing 3 of 8 comments
Shannonals
Jul 21, 2009 12:16 PM CDT
Hate to breakit to you Snarfeh, but TARP has been around a long, long time, so if your idea was to say it started January 2009, your mistaken.
northeast
Jul 21, 2009 11:44 AM CDT
23 trillion is the worst possible, he was clear to note. In that case, do you feel Treasury's assertion that it will cost barely 2 trillion is a reasonable assessment? I admire the absolutely tangental response though....perhaps you should run for governor of Alaska one day?
kokuaguy
Jul 21, 2009 11:13 AM CDT
Obviously it's a worst case scenario, what the Republican 'leaders' in Congress are hoping for. Of course he had to prepare those figures in answer to the kinds of questions they were guaranteed to ask him. By nominating McCain they were virtually assured a Dem victory. Now that they have a black man in the WH they're counting on their Southern Strategy and the economic catastrophe they are trying so hard to bring about to help them recapture the presidency in 2012. One problem -- the voters are not as stupid as they think.
Money • Politics • US

 
Treasury Department • taxpayer money • federal spending • rescue package • Wall Street bailout • Timothy Geithner • TARP • Neil Barofsky

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